Mayday

Oops. Odds of another rate hike this sizzling summer jumped Tuesday with the latest economic data. Seems millions of indebted, rabid beavers can’t stop borrowing and spending money, buying stuff and goosing economic activity. Plus oil’s been on our side.

The result: in May the economy grew a half a point (that’s big) and year/year the advance is 2.6% (a change from luke to hot). So the chances of another Bank of Canada increase have doubled. Meanwhile last week’s boffo GDP stats out of the US (“unthinkably” massive, according to Trump) laid to rest any doubt where the Fed’s headed.

This is rotten news for the 12% of Canadians who have well and truly pickled themselves in debt. They owe about 350% of what they earn – twice the national average. Most live in the GTA or the Lower Mainland and of those who have bought real estate worth $1 million or more, the debt-to-income ratio is 450% or more.

The unravelling of personal finance, if it comes, will be tied inextricably to the deflowering of residential real estate. Look at the Westside of Vancouver, for example. Sales of expensive houses ($6 million or more) have crashed 66%. There is now a 10-year supply of mansions for sale in West Van. The crumble that started at the top is filtering down through detached homes at all levels.

Meanwhile the stress test and rising rates are distorting the market at the bottom end. Prices for condos (that’s all many people can afford now) have been pushed up so much that holes in an average high-rise rabbit warren now cost what a detached did in YVR four years ago, and six years back in the GTA. As mentioned here a few days ago, the typical new-build condo in Toronto commands over $750,000.

So, expensive houses are being decimated but still remain unaffordable. Cheap houses have been swarmed and are no longer affordable. Sales overall have plunged. The Bank of Canada has raised rates four times. Household debt is unsustainable. Now more rate hikes lie ahead.

The next big shoe to drop: a serious and widespread drop in the equity of all houses (only 5% of people buy or sell in a year). That’s big news if you happen to have most of your net worth in a single asset. Or carry a fat mortgage.

By the way, while the economy has been expanding, real estate’s been going in the opposite direction – down 2.7% in a month, the fourth decline in five months. There are even leaner times coming for realtors as falling sales decimate their bloated numbers.

Buy a house if you want, can afford it, and your marriage depends on it. But understand clearly that in most markets if you wait, you’ll pay less. Anyone buying on the Westside last year, for example, just blew through a million. Or more.

$    $    $

Since writing a dismal, depressing and dark piece on POAs a couple of days ago, my inbox has been brimming with notes from folks wanting to pass on their experiences. Apparently, everyone dies – which is, like, wow.

Nothing seems to blow families apart like the decline and demise of parents, which is why a will’s so important, along with the choice of a proper executor. Accompanying that is ensuring you have a power of attorney to look after things if you need caring for, and that the person you choose is not a dickhead.

And that brings us to Carol.

Hi Garth I have been a follower of your blog since its inception as well as an avid reader of your  books.  My husband and I are presently caring for an aging parent suffering from dementia.  My father recently passed away leaving all property, financial assets etc. to my mother.  Neither of my parents were financially literate in the ways of investing. All their trust was placed in the hands of [email protected] Needless to say all of their investments – over $450,000 – are in GICs. The POA for my mother (my brother) also is not aware of the many investment options available and is also a fan of GICs – so called safe investments.

My mother is 86 years and other than the dementia is reasonably healthy. My brother is proposing that we start collapsing the investments and distributing them equally between 8 siblings on an annual or semi annual basis. His worry is that if we wait till my mother passes the CRA will also be a large benefactor. Due to the fact that many baby boomers such as myself and my husband are also dealing with similar issues I thought it might make for an interesting topic on your Blog.

Carol’s mom chose poorly. Her son, as POA, has a legal and fiduciary duty to place her interests above his own, that of the family, or anyone else. Just having power of attorney does not give him the right to give away her funds or spend money in any fashion that does not support her, regardless of age or health. In fact, it is a criminal activity if he does. Mom could live for another decade and easily require all the cash.

Once she passes her will dictates how the remaining money will flow to beneficiaries, and mom’s estate will be taxed accordingly. Of course, a few hundred thou sitting in dead-end, no-growth GICs will hardly attract much CRA attention, so this sounds like a ploy by the misguided son to get money for a new Ram truck.

A POA’s highest and only duty is to look after the person who bestowed their trust. Failure to do so earns you a special place in the flames. Bro is on his way.

133 comments ↓

#1 Dave on 07.31.18 at 4:32 pm

Steady Declining real estate pricing have been a process that will take time to play out.
Feel that an Event is going to happen and then a major correction over night.
Trump comes to mind and T2 wont truely even see it coming.

#2 darkselling on 07.31.18 at 4:34 pm

I read the wording as the brother is worried the CRA might have an inheritance tax in the near future vs. being worried about investing in something that creates a tax obligation.
HOWEVER, you’re still 100% right, if they’re worried about an inheritance tax in the future that would be moot to the mother and distributing to children to avoid that tax isn’t in her best interests as it has no impact on her (unless she’d actually want to give all her wealth away tax free).

#3 NotLegalAdvice on 07.31.18 at 4:59 pm

One thing I would like to point out about POA’s is …..they are revocable at anytime.

If you create a POA today and name your “favourite” most trusting child as the POA and realize years down the road that he’s actually just a dick, revoke the power.

Grant to POA to another child instead, or a spouse. As years go on and your health changes, so can your POA.

SO CAN YOUR WILL. Change is good.

#4 Westcdn on 07.31.18 at 5:07 pm

Re: Carol
If I had the POA, I would be maximizing her tfsa then a non-registered investment account. The money is to provide for HER even though she may not know the difference.

#5 The Real Mark on 07.31.18 at 5:10 pm

I will see if I can drum up enough strength for a long winded comment with no discernable point and certainly no references to support my claims and theories. I’m still feeling very hurt about the fake Mark posting so we will see.

#6 Stan Brooks on 07.31.18 at 5:25 pm

There is no growth.

GDP is up 0.5 % with inflation up at least 1 %, maybe 2 or 3 + (check your grocery and energy bills) so there is real contraction.

But the sheeple is sooooooooooooo stupid.

If the economy was so hot interest rates should have been 6 % and up.

It is just a trick, smoke and mirrors of humongous inflation and no interest rate increases any time soon, mark my word.

Inflation/cost of living of 8 % +, interest rates at 1.25 %.

For 10 more years.

As I said, this ignorangt sheeple is just soooooooo stuuuuuuuuuuupid.

#7 Stan Brooks on 07.31.18 at 5:29 pm

All the truth about this ‘growth’, read the comments under:

https://ca.finance.yahoo.com/news/may-gdp-shows-0-5-124955095.html

What a truly pathetic place this has become.

#8 R Vanzo on 07.31.18 at 5:32 pm

The problem is, people want houses. They want a detached or at least a townhouse to raise their kids. They were given this lifestyle, know it is a good one and want to offer their offspring too. But no matter how long they wait, prices simply don’t budge. A home for a family of four in Toronto is still above 1 million. Even if they go to the nearby towns, Markham, Mississauga, Vaughan, prices are the same or higher. It is a complicated time we live in.

#9 Grateful Boomer on 07.31.18 at 5:35 pm

Yet another horrifying story of how adult siblings take care of their aging parents and each other. So sad.

Carol’s POA brother actually thinks he can distribute semi / annual bonuses of money that is not his?…..scary to think how many of his 7 other siblings think this a good idea

#10 Stan Brooks on 07.31.18 at 5:35 pm

#8 R Vanzo on 07.31.18 at 5:32 pm
The problem is, people want houses. They want a detached or at least a townhouse to raise their kids. They were given this lifestyle, know it is a good one and want to offer their offspring too. But no matter how long they wait, prices simply don’t budge. A home for a family of four in Toronto is still above 1 million. Even if they go to the nearby towns, Markham, Mississauga, Vaughan, prices are the same or higher. It is a complicated time we live in.

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

It is because the owners of this place want their rent.
So they count on basic human instincts of nesting and reproduction, extracting all of your energy to serve a basic need (GT thinks it is privilege and not a right) of housing.

Well they just proved too greedy and incompetent and surely broke the back of this nation and economy with their policies for quite some time.

Greedy stupid bastards.

#11 A. Brockman on 07.31.18 at 5:41 pm

Yay Doug Ford! The welfare recipients will have to find a job than mooch off of MY tax dollars.
Doug Ford can you plz develop the Greenbelt and Reserves? Many who live there are welfare recipients and tax dodgers and I have clients from Asia and Russia who are waiting for investing in the Greenbelt.

Love,
A. Brockman

#12 Interesting on 07.31.18 at 5:59 pm

If the interest rate would normalize to the 4% range then all these imbalances would quickly dissipate.
Housing would correct 30%-40%.
Savings would increase.

Why is it that the 4% seems so far away and so inconceivable?
That is how messed up we are in debt. I really do not think that we can ever get back there.
Central bank have really messed this whole thing up.
In the next downturn there will be no stimulus just massive repricing.

#13 Linda on 07.31.18 at 5:59 pm

Garth, good & timely posts on POA & what the fiduciary responsibilities are. One question though: if one knows that the POA is being abused or ‘criminal’ actions are being contemplated, who do you call? The police? The elder abuse hotline? A lawyer? All of the above? Because stuff like this really illustrates that whole ‘time is money’ or in this case, lack of money if too much time has passed. Money which might make the difference between living out one’s life with dignity – or at least good care.

#14 tccontrarian on 07.31.18 at 6:01 pm

“In Canada, there is no inheritance tax. Instead the CRA treats the estate as a sale, unless the estate is inherited by the surviving spouse or common-law partner, where certain exceptions are possible. This means that the estate pays the taxes owed to the government, rather than the beneficiaries paying.”
—————————————————-

Did a quick search on this and this is what I found. So, the beneficiaries don’t pay tax – the estate does!

TCC

#15 Cristian on 07.31.18 at 6:06 pm

“Mom could live for another decade and easily require all the cash.”

The average survival in dementia is 4.5 years.
That being said, it’s her money and it should not be distributed without her consent, even if it were legal to do so.

#16 Leo Trollstoy on 07.31.18 at 6:07 pm

#5 The Real Fake News on 07.31.18 at 5:10 pm

sorry to hear dat crissy

hope u find job soon gl gl

#17 Fish on 07.31.18 at 6:12 pm

They say a cat has 9 lives, but I’m not a cat so if growth
is up 6 % I’m not getting hooked by an # 8 hook by mark

#18 Howard on 07.31.18 at 6:18 pm

The fact that the old lady still has 450K at age 86 shows that she and her husband were more financially literate than their daughter gives them credit for. Surely at this point in the game, putting the 450K in a 3.5% GIC is a perfectly good idea.

It came from the sale of her only asset – a house. A GIC is a terrible idea since it does not allow cash for her continued care. – Garth

#19 Mike in Airdrie on 07.31.18 at 6:18 pm

A 66% “crash” in sales of $6M+ houses sounds bad but I suspect the base number wasn’t that large to begin with. Or perhaps all the houses in YVR are in that price range now. :)

#20 Andrewski on 07.31.18 at 6:24 pm

POA. Plan Onward Appropriately!

#21 ImGonnaBeSick on 07.31.18 at 6:26 pm

#8 – Toronto is 630km^2… Canada is 9,000,000km^2… Move if you can’t afford it. Plenty of room.

#22 AGuyInVancouver on 07.31.18 at 6:26 pm

#7 Stan Brooks on 07.31.18 at 5:29 pm
All the truth about this ‘growth’, read the comments under:

https://ca.finance.yahoo.com/news/may-gdp-shows-0-5-124955095.html

What a truly pathetic place this has become.
_ _ _
What on Earth are you rambling on about? There’s nothing in that article you quoted that questions the strength of the growth,it is solid and across all industries.

#23 winterpeg on 07.31.18 at 6:29 pm

As one of two persons whom my mother entrusted to be her POA, and her executrix , I am very aware of the responsibilities that came along with that decision. (I read with great interest, many months ago, the blog postings about the pitfalls and duties of being POA and Executor and took note.) But the die has been cast. We’re it. With the enduring POA now in effect, we manage her finances now that her capacity has declined) Luckily we know our duties and no family member (including us) has asked for a “cash advance” from my Mom and they ain’t getting one if they do until the will comes to pass. Regarding the brother in the scenario above, if his Mom’s POA was not an “enduring POA” from the outset, then I don’t think he has the right to act anymore. It would have to go to a committeeship, correct? Regarding the brother liquidating the monies in the estate early, the tax will still have to be paid at his Mom’s marginal tax rate, which would likely be lower than the year of her death, assuming she has a healthy estate. Is brother reporting those dispositions?? assuming he does her taxes. Either way, CRA with get a share.
As a care giver and one who manages my Mom’s affairs I understand some of the challenges families face. I appreciate also some of the comments yesterday about the sister who seemed to be bilking Mom out of her cash and brother’s inheritance. There was some good feedback about the high cost financially and emotionally of elder care. In that case, I agree the brother should appreciate the job that is being undertaken. That said, one has to be on top of signs of financial and even emotional abuse.

#24 David Pylyp on 07.31.18 at 6:30 pm

“The crumble that started at the top is filtering down through detached homes at all levels.”

Toronto real estate is following this trend

This is not a learning on the job position.

htttp://HouseValuesToronto.ca

#25 Trumpocalypse2018 on 07.31.18 at 7:07 pm

“Mayday” is right.

The countdown has started.

42 Days til September 11.

Then it really hits the fan, with Bob Woodward’s new book exposing everything about Trump’s crew.

Trump will have no options but for military distractions when this happens.

https://www.politico.com/story/2018/07/31/trump-woodward-book-white-house-reporters-press-753109

https://www.thetimes.co.uk/article/watergate-reporter-bob-woodward-writes-trump-expos-ndj6prw7v

The title? Appropriately, “FEAR”.

To Be Released on September 11, 2018.

PREPARE

#26 Suburban Guy on 07.31.18 at 7:11 pm

Yes, POA have a fiduciary duty to the aging parent, but I know of one case where the Estate was over 5 mil and the POA (my Ex) refused to give even a nickel (under lawyer’s advice) to her siblings who were experiencing job related financial difficulties. Mom’s dead and the sibs no longer speak to my Ex. Each got 1.5 mil and each grandkid got 100K.

I was part of the family and know that Mom would have helped the kids. No use having that kind of money while your kid has to eat cat food because of job loss.

Great advice that lawyer gave. /sarc/

Nothing’s black and white, Garth.

#27 John on 07.31.18 at 7:15 pm

Stan Brooks

As I said, this ignorangt sheeple is just soooooooo stuuuuuuuuuuupid.

Umm… you referring to yourself I assume… what a dick!
You are obviously a legend in your own mind kind of guy…

#28 John on 07.31.18 at 7:17 pm

TCC Contrarian
Did a quick search on this and this is what I found. So, the beneficiaries don’t pay tax – the estate does!

TCC

You a rocket scientist???? Duh……

#29 Fish on 07.31.18 at 7:34 pm

http://www.bloomberg.com/amp/news/articles/2018-07-31/oil-drives-canada-s-fastest-economic-growth-spurt-in-a-year

#30 crowdedelevatorfartz on 07.31.18 at 7:38 pm

“Carol’s mom chose poorly. Her son, as POA, has a legal and fiduciary duty to place her interests above his own, that of the family, or anyone else. Just having power of attorney does not give him the right to give away her funds or spend money in any fashion that does not support her, regardless of age or health. In fact, it is a criminal activity if he does. Mom could live for another decade and easily require all the cash.”

+++++

Carol might want to download the “Responsibilities of the Power of Attorney” and send them to her brother (and all the other siblings) with the pertinent parts highlighted……
She could do it upfront through a lawyer or anonymously, either way, her brother would get the legal picture.

#31 Heather Hallam on 07.31.18 at 7:39 pm

My sister and I were the POAs for my mother until her death last December. Now we are the executors for her estate. I know in some cases your children as executors may not be a good idea but in our situation it seems to be working fine. No one wants to rip off my mother’s estate and I keep very detailed records that any of the beneficiaries can look at whenever they want. I work at being very open and making sure that everyone is ok with stuff going to Value Village or if they want any items. Some items have been claimed. All in all going very smoothly.

#32 AlbertaGuy in AB on 07.31.18 at 7:44 pm

Our family through the POA situation as we speak, FIL given death sentence 3 months ago with diagnosis of stage 4 liver cancer. Now in hospice with days to live, has chosen to make one of his final actions on this earth to gift all assets evenly to 3 children before his death to avoid probate, legal fees and delay. First class act.

#33 WUL on 07.31.18 at 7:46 pm

#13 Linda on 07.31.18 at 5:59 pm
Garth, good & timely posts on POA & what the fiduciary responsibilities are. One question though: if one knows that the POA is being abused or ‘criminal’ actions are being contemplated, who do you call?
$$$$$$$$$$$$$$$$$$$

A cantankerous litigator in a six piece suit. Get a quote and try to agree on a fixed fee.

Then call the Clerk of the Court to inquire when the Motion for an injunction can be heard before a Justice (don’t say “Doofus”). The answer will be early 2019.

Don’t forget self help remedies. 3 or 4 former Junior B hardrock blueliner hockey players. I know one but he is currently on Hwy 66 returning from Sin City to his van in Ventura, Calif. with six dozen cartons of smokes and a case of JD.

#34 Nonplused on 07.31.18 at 7:46 pm

Family sucks. Poor Carol. Problem is at this point if mom has dementia she may not be considered capable of revoking the POA or understanding what her son is up to. Poor woman isn’t even dead yet and he wants to start cutting up the carcass.

Some people are fortunate enough to be in a financial position to start handing out money to their heirs before they die. Maybe they have more money than they need to retire. So they might help the kids out by giving them money to help them along, maybe buy a house, send the grand-kids to college, what have you. I know one woman whose parents bought both their kids new travel trailers. Nice I guess, except that she already had a huge travel trailer. Now she has two. My guess is that she will sell the old one. Her brother had one too, although smaller than the new one. He will have to get a bigger truck now, which is a $70,000 touch. Parents. Even when they are trying to be nice they screw everything up. And I can clearly see through the motivation as well, it is an obvious obligation now that they camp with the parents, who also bought themselves a new trailer. She used to go camping with us all the time because our kids are about the same age, and her brother came one time too, but that’s all stopped since she got the new trailer from her parents.

My parents managed to muck things up with gifting as well. My sister, through bad luck and bad decisions, found herself with no job, no husband, no money, and 2 kids. My dad proudly announced he’d solved the problem by giving her a bunch of money to buy a house but changed his will so that the money comes out of her inheritance. This sounds somewhat reasonable I suppose except that 1. it assumes there will be an inheritance for each of the siblings greater than what he gave her in advance, and 2. most of the other siblings are still carrying mortgages and raising their own children, and 3. some of the grandchildren are now in the same damn spot, single and parenting with little to no money, and 4. those grandchildren that aren’t already moms are racking up student loans. So it sort of reminds me of the Titanic: Not enough life boats.

When I pointed out these obvious problems he drew a clear distinction between children and grandchildren, implying the grand children were our responsibility. That only one of his children was singled out for a “pre-inheritance” did not disturb his logic. Nor did the idea that I would use any such gift to fund my kid’s education.

And of course, as with the trailer example above and as to be expected, my sister’s choice of houses was limited to those within a short distance to where my parents live.

People make these sorts of messes all the time, it seems they know not what they do.

——————

#21 ImGonnaBeSick

90% of Canadians live within 100 miles of the US boarder, and there is a reason for that. Canada may be very big, but it’s also mostly uninhabitable. There isn’t as much “room” here as one might assume looking at a globe. In fact I’d say the “habitable” part of Canada is pretty much full.

Russia has the same problem. Sure, it’s the largest country on this planet earth, but the population largely resides squished up against the border with Europe. Siberia is and always will be largely deserted, except for the oil workers and miners. Canada is much the same. There isn’t much reason to live in the Yukon if you don’t work for a mine. There are only 2 season, cold as f***! and mosquitoes the size of drones.

Toronto and Vancouver are as large as they are because of 2 reasons: Climate, and proximity to the US commerce centers. Calgary and Edmonton are only as large as they are because of all the oil and gas that goes into pipelines in Alberta, and then goes to Ontario, Vancouver, and mostly the states. Otherwise there wouldn’t be a reason to live there either. The climate in Calgary is “10 months of winter and 6 weeks of piss-poor weather”. Alberta is full. We got lots of land, but most of it is barely suitable for grassing cows.

#35 interestes to know on 07.31.18 at 8:00 pm

I’ve seen this ‘[email protected]’ mentioned on this blog a few times. What/who are they?

#36 Dolce Vita on 07.31.18 at 8:11 pm

Indeed, +0.5% GDP growth in a single month is huge.

As Bank of Montreal’s Porter said: “Canadians came out of hibernation in May, and the economy benefited big time.”

May GDP report unaffected by Tariffs which started June (Trump) and July (Canada). We will not know their full impact on Canadian GDP until 4th Qtr. If you believe the “sky is falling” MSM, then not good. We shall see.

Currently, the US talking to Mexico ONLY about NAFTA. Divide and conquer. The US are in effect conducting bilateral negotiations on trade – a Trump promise.

Then if Trump does the unthinkable, tariff Ontario’s Auto Industry because he cannot get what he wants…you don’t need to ask an Economist on what that will do Canadian GDP by 4th Qtr.

To that, add a grotesquely indebted nation making us vulnerable to external economic shocks (e.g., Trump) and more vulnerable yet as people are feeling “less wealthy” as they can see their “paper wealth” in RE will probably drop (lower consumer spending)…well, not all paper wealth, after all, we do have the HELOC people milking that paper wealth.

I do not see GDP going well by 4th Qtr., the opposite is my gut feel.

Hope I am wrong but it sure feels a lot like the same exuberance just before past recessions.

If that happens and the banks see their cash flow severely affected, I feel sorry for the demand loan HELOC people who will undoubtedly have the “squeeze” put on them and their free spending ways.

#37 Getting older in Vancouver on 07.31.18 at 8:23 pm

When my father passed away, (mom had died a few years before), my brother had power of attorney, and the same name as my father. My siblings and I gathered at my dads place; divided up his possesions; mostly sentimental things; my brother distributed the money remaining in the bank accounts, leaving a little for the final tax filing and we all grieved the passing of a wonderful parent. I used my little inheritance to put a new roof on our house. It felt fitting since he had put a roof over my head for so many years.

#38 A Yank in BC on 07.31.18 at 8:28 pm

My Mother had Alzheimer’s and survived for 10 years. During that time I was one-half of a POA that had my Sister as the other half. We agreed on little and for that reason I sure don’t recommend it.

#39 Fish on 07.31.18 at 8:35 pm

Oil Drives Canada’s Fastest Economic Growth Spurt in a Year
By Greg Quinn
July 31, 2018, 8:30 AM EDT
Updated on July 31, 2018, 10:12 AM EDT

https://www.bloomberg.com/amp/news/articles/2018-07-31/oil-drives-canada-s-fastest-economic-growth-spurt-in-a-year

#40 Tony on 07.31.18 at 8:47 pm

Re: #2 darkselling on 07.31.18 at 4:34 pm

What they’re worried about and rightfully so is probate tax. If she was of sound mind she would have already distributed most of the assets and money amoungst the 8 siblings. Anything above the $50,000 or so figure will go to probate. She should be liquidating almost everything as we speak. Should everything go to probate it is possible an inheritance tax will be brought in while the assets and money are in probate.

#41 Drill Baby Drill on 07.31.18 at 8:48 pm

If you want a crystal ball into Canada’s very near future only look to the USA/Mexico “binational” NAFTA talks which began today. Combined with the USA/EU no tariffs talks (read no Auto tariffs) ongoing and yet no Canada talks in sight. Canada has now been pushed back into the 2nd class steerage section. Auto tariffs are about to be imposed on sunshine and lollypops selfie boy and the rest of us.

#42 Drill Baby Drill on 07.31.18 at 8:50 pm

NONPLUSED – is an ignorant moron

#43 Dolce Vita on 07.31.18 at 8:52 pm

Off topic and prompted by #34 Nonplused climate comments.

As a Canadian residing in Italia and watching recent Canadian TV heat hysteria weather warnings (the American’s are no better, if not worse) I had to laugh.

FINALLY, the Italians broke down and issued what they call a “Bollino Rosso” weather warning for Thursday where it is expected to hit +40°C in many North, Central Italian cities.

FIRST heat warning this year.

My neck of the woods in NE Italia has been in the low to mid 30s for weeks now.

Weather forecast highs starting tomorrow:

37, 35, 37, 38, 37, 35, 34, 34, 33 (by “AccuWeather”; thus, add at least 3 to 4 more degrees for the ACTUAL high temperature. EXPERIENCE based comment: me and my trusty German made Digital Thermometer checking the temperature outside on my terrazzo, already recorded a few +40°C days so far, 43°C a few days or week ago).

They don’t call it Sunny Italy for nothing I suppose. In my small garden everything ripe and done for the year weeks ago (except for grapes)…still shake my head about their climate here, amazing.

Like everyone else, the Italian’s are blaming it on something else, in this case Africa: “Anticiclone Africano”…like the American’s in Winter blaming Canada for the cold (ala South Park).

You adapt to the heat. Why beaches are an Italian passion in the Summer – where you will find us en masse (and to escape you Tourists).

#44 Chico on 07.31.18 at 8:55 pm

#5 The Real Mark on 07.31.18 at 5:10 pm

I will see if I can drum up enough strength for a long winded comment with no discernable point and certainly no references to support my claims and theories. I’m still feeling very hurt about the fake Mark posting so we will see.

———————————————————-

Excellent post!

I’ve never paid attention to Mark’s writing in the past. I have noticed the banter recently around “real Mark” vs. “fake Mark,” but still haven’t considered what it’s all about.

Your comment today did bring a smile to my face and bring back some good memories I have of messing with Freedom First’s head. ;)

#45 ImGonnaBeSick on 07.31.18 at 8:58 pm

#34 Nonplused – I know.. I was being a bit facetious, but the point remains. It’s a large country to spread your wings in.. I’ve been to the east and west coast, and every province in between many times (Haven’t made it to the territories yet.) It’s a big beautiful country and if they made it a bit easier to travel (open up transit to more companies?) I think Canadians wouldn’t be so afraid to move around.

PS: I really enjoy your posts, my second favourite thing about reading this blog nightly.

#46 Chico on 07.31.18 at 9:00 pm

#7 Stan Brooks on 07.31.18 at 5:29 pm

All the truth about this ‘growth’, read the comments under:

https://ca.finance.yahoo.com/news/may-gdp-shows-0-5-124955095.html

What a truly pathetic place this has become.

———————————————————

I agree. You are in the top 5 when it comes to number of posts per day.

You have such a fine way of putting your foot in your mouth!

#47 Tony on 07.31.18 at 9:01 pm

Re: #18 Howard on 07.31.18 at 6:18 pm

An Israel bond would make a lot of sense and you can hedge the Canadian currency. Of course World War III could see everything evaporate including all the money.

#48 Sprawl on 07.31.18 at 9:02 pm

It’s the mother’s money. For her necessities of life. She isn’t dead yet. The sense of entitlement is a tad unseemly. Both schemes could end costing the family more, if the estate is litigated. That lawyer on $5 million estate gave great advice! If the Estate had of been contested and Passing Accounts required the Passing of Accounts Court Tariff could have been $900,000! As it was there was nothing to contest with ligation on the “Show me where the money went trail”. Cus uno all the money was still there less direct expenses. Wise Ex.

#49 Samuel on 07.31.18 at 9:16 pm

Regarding Carol’s situation. With 8 siblings, we are talking about what, just $50,000 each? I’m assuming the “kids” are in their 60s on average. Brother is both greedy and stupid. If he was just greedy and not stupid he would let the mom keep the money, grow it, and chances are a few of the 8 siblings might die off first, thus giving him a bigger piece of the pie.

#50 Dolce Vita on 07.31.18 at 9:18 pm

“Failure to do so earns you a special place in the flames. Bro is on his way.”

Distressing to read in today’s Blog and Comments about the many vile, avaricious, unprincipled, greedy people that are out “there”.

BEFORE the flames, I hope that the children of these people do the same to them as they are doing to their parents and siblings.

What comes around goes around…now THAT would be sweet.

#51 Lg on 07.31.18 at 9:19 pm

#8 R Vanzo

Not true. No need to go out of Toronto, you can still buy detached bungalows for a family of four in Toronto (Scarborough) for $700,000 on a decent sized lot. Lots of them out there for under 1 million.

#52 William of the North on 07.31.18 at 9:27 pm

Just some food for thought. 25 year mortgage:

$750,000.00 mortgage @ 2.5% =$259,387.65 (interest) for a total of $1,009,387.65.

$500,000.00 mortgage @ 7%=560,168.80 for a total of 1,060,168.80.

Who’s winning in this situation?

Individual accountability….. it’s tough. Uninformed people have a tendency to get crushed; but it’s always someone else’s fault. Do the hard work, and figure out what makes the most sense for you…. and be able to accept the consequences (good or bad) of your actions.

https://www.myamortizationchart.com/

The tools are there… teach yourself how to use them.

#53 Vancouver Condo Bubble Takes New Hit on 07.31.18 at 9:33 pm

In recent years, pre-sale buyers have made out like bandits, securing pre-sale contracts with no proof of funds, financing, and in many cases no intention of closing upon completion — ultimately flipping the contract to another buyer for windfall profits, with most of the gains earned on the leverage of price inflation.

These profits are largely tax-free as flippers choose not to self-report capital gains to Canada Revenue Agency (CRA, equivalent of the IRS in the US). Because there is no title registration through BC land titles, the best CRA can do is take the developer to court in order to obtain the list of pre-sale buyers who have flipped their contract.

And that’s exactly what CRA has done — most recently targeting the developers behind Vancouver’s Trump Tower, the sprawling Wall Centre Central Park project near the Vancouver-Burnaby border, and Amacon’s Tempo project in Richmond.

#54 Call me John on 07.31.18 at 9:34 pm

“The move by the BC government to crack down on tax evasion by requiring developers to collect and report information on pre-sale condo assignments to ensure buyers are paying the appropriate taxes may”

It is shameful that this information wasn’t being collected already. What other market data is being kept from the public, either by hiding or not being collected?

You just posted ten times on the same subject under different names. Knock it off. – Garth

#55 Cricket on 07.31.18 at 9:36 pm

DELETED

#56 Lg on 07.31.18 at 9:36 pm

@ 35 Interests to Know

[email protected] = the nice lady at the bank :)

#57 On the ground YVR on 07.31.18 at 9:37 pm

DELETED

#58 Work and Tumbel on 07.31.18 at 9:38 pm

Carol, your brother the POA, is seeing a pay out as you know, but perhaps you can remind him how lucky he is that she has the moneys on hand for good care.
My mother had a small nest egg but not the money needed for the extra care required for a person with dementia. In the end, she had good care but I had to chip in so she had the little extras.
Your brother may need a reminder from you as to how lucky he is, as it will not cost him anything for her care and he will get some money in the end, which he wants so bad and he’ll look like a real POA and not a POS.

#59 crowdedelevatorfartz on 07.31.18 at 9:41 pm

@#41 Drill Baby Drill
“Canada has now been pushed back into the 2nd class steerage section. Auto tariffs are about to be imposed on sunshine and lollypops selfie boy and the rest of us.”

++++

Yep, Its gonna be amusing watching Trudeau and Butz try and get everyone focussed on what a bad person Trump is instead of dealing with the reality….the world isnt a friendly place.

#60 What about honest people in BC? on 07.31.18 at 9:42 pm

I’m genuinely curious, along with the bad actors, there are bound to be some real BC homeowners who take a beating because of this drop in real estate prices. What happens to them? Or are they just considered acceptable casualties?

Government will look at it as an accident when in reality they were allowing criminal money that will hurt honest working people in BC.

Let’s see public inquiry and jail time for those identified to have been bad actors.

#61 Could bypass to Ottawa, Montreal on 07.31.18 at 9:48 pm

With the cooling markets I think Toronto is getting passed up for Montreal and Ottawa. Shady business practices try to avoid well lit areas and the lights are aimed at all of BC, Toronto and the GTA.

#62 banana republic on 07.31.18 at 9:50 pm

Sounds like it’s a Swamp up there. Naturally this starts with a cleaning up via taxation. It’s amazing, one Country, with 10 provinces all doing their own rules/tax thing? So now trickling down to city levels? Sounds more like a pension panic beaurocrats looking at Provincial Finance, which they somehow they figured out. Of course, they and their political sponsors will not pay. That is what their people are for. But, it’s them who need a grip.

It seems the BC and Ontario government are the only two governments on the continent tackling the problem of rampant housing speculation and money laundering. I hope I’m wrong and there are more.

#63 crowdedelevatorfartz on 07.31.18 at 9:52 pm

Tonights CBC “news”
152,000 govt employees stuck with the “disasterous” Pheonix Payroll system.
1 BILLION spent on trying to “fix it” and another 1 Billion may be needed.

If this isnt an example of govt incompetance coming back to bite the very same incompetant bureaucrats who sat around in meetings to design, create and implement it……I dont know what is.

#64 The China Hustle on 07.31.18 at 9:58 pm

Over the past 10 years or so I have seen most of the financial crisis movies and documentaries but somehow I missed the ” The China Hustle” 2017 documentary. For anyone who hasn’t seen it yet, its one of the best you’ll ever see (about 85 minutes long). Pay particular attention to Trump at the end of the documentary saying that he wants to lower regulations on the US stock markets by about 70% after all of the fraud you’ll see in this flic ?

#65 Nonplused on 07.31.18 at 10:00 pm

#42 Drill Baby Drill on 07.31.18 at 8:50 pm
NONPLUSED – is an ignorant moron

Garth, can you remove that one? I think it breaches your code of conduct. If “Drill Baby Drill” wants to come back and state his disagreements with what I’ve said, that’s fair play, but calling people names is against what I thought were the rules of this forum.

If you do remove it remove this one also.

Baby Driller is a moron himself. Now you’re even. – Garth

#66 Ana on 07.31.18 at 10:04 pm

#35 et al

Please people before you ask what an acronym stands for try using that fancy device you are reading this blog on to google it! The odds are you will find your own answers. I know the answer but googled [email protected] for kicks just now to see what would come up and guess what…the first several hits were Garth’s blog with people asking the exact same question and the answer being supplied for them…2013, 2016 etc. I won’t spoil it by giving away the answer – I want you to appreciate the joy of not being a lazy individual and enriching yourself! Rant over.

#67 FOUR FINGERS WATSON on 07.31.18 at 10:04 pm

#41 Drill Baby Drill on 07.31.18 at 8:48 pm
If you want a crystal ball into Canada’s very near future only look to the USA/Mexico “binational” NAFTA talks which began today. Combined with the USA/EU no tariffs talks (read no Auto tariffs) ongoing and yet no Canada talks in sight. Canada has now been pushed back into the 2nd class steerage section. Auto tariffs are about to be imposed on sunshine and lollypops selfie boy and the rest of us.
…………………………..

You worry too much. Just today, our fearless leader sent his two best men to Washington . Ben Dover and Phillip McAvity have years of experience dealing with this sort of crap. They will sort this out in no time. Relax.

#68 Nonplused on 07.31.18 at 10:06 pm

#43 Dolce Vita on 07.31.18 at 8:52 pm

I was talking about climate, not climate change. Vancouver and Toronto are generally much more pleasant climate wise than Calgary now, and have always been in the past, I was not making any predictions as to the future.

#69 Jas on 07.31.18 at 10:08 pm

RE is very local…..very local.
Surrey is booming because 1000 folks moving here each month.
1% to 1.5% increase in IR won’t dent this local market much.

#70 JRT on 07.31.18 at 10:09 pm

Though it is a mediocre news site, this is a good article. Mentions TO as prices rose slightly, aka dead cat bounce. Prices are still below peaks. Penticton seems to have many house horny buyers for cheap condos made out of corn flakes, even though sales of single family homes are down, and prices haven’t dropped yet as they are sticky on the way down.

https://www.bloombergquint.com/global-economics/2018/07/31/are-house-prices-falling-from-sydney-to-new-york#gs.sf6PMbU

#71 Nonplused on 07.31.18 at 10:15 pm

#45 ImGonnaBeSick on 07.31.18 at 8:58 pm

Ok, we have an understanding. I mean I see your point, but until “working from home” truly becomes an option for every job, real estate will always be “location, location, location”.

We are on that road though. My wife works from home for a very large company. All she need is for the internet to be working. When it’s down she “hotspots” on her phone and the company pays for that phone so it’s all good. The internet was down today so she had to “hotspot”, but she didn’t have to pay for it.

#72 renter in Surrey on 07.31.18 at 10:17 pm

#41 Drill Baby Drill

… Auto tariffs are about to be imposed on sunshine and lollypops selfie boy and the rest of us.

———————————————————————————

We don’t need no stinking NAFTA.
We got 56 gender pronouns and Read Estate.
God bless money laundering crooks from all over the world.

PS. Selfie fancy-socks-boy is gonna be fine, he is the trust baby. We, on other hand, are totally screwed.

#73 Cici on 07.31.18 at 10:24 pm

Great advice Garth, but incredibly discouraging that so many of the POAs out there are in actual fact just POS.

Poor Mom. Gave birth to and raised EIGHT children, at least one of which cares more about fifty thou than her long-term well-being? I WISH you were making this shit up!

#74 akashic record on 07.31.18 at 10:41 pm

Reminds me of a dog back at the military airport. The dogs there got the left over food from the kitchen. A particularly nasty officer used to demand food from the rookies at the night shift. They used to collect it for him from the dogs plate. Everybody knew but him, even the dogs. They always left some.

#75 Leichendiener on 07.31.18 at 10:49 pm

My mother had dementia for fifteen years before she died. Both my older sister and I were her POA. My sister wanted her ‘inheritance’ now. I told her she had to wait. Most parents don’t die on cue. They tend to linger. The Home still has to be paid. The Public Trustee is very unsympathetic to beneficiaries if there are problems.

#76 Nonplused on 07.31.18 at 11:00 pm

Baby Driller is a moron himself. Now you’re even. – Garth

Hey… I resemble, er, I mean resent that comment.

I still don’t think you should be allowing commenters to be calling each other names, whether they be accurate or not. It’s “Ad Hominem” even when accurate, if it’s accurate.

I may be a moron, heck I can certainly say that I’ve made some pretty moronic decisions, and I can also say most of the people I know are morons. But it is ideas that move us forward, not IQ tests. We should be discussing ideas.

Calling someone a moron is about as useful as calling someone fat while you eat a whole bag of Doritos in front of the TV. It’s not much of an argument. In fact it’s not an argument at all.

#77 Drill Baby Drill on 07.31.18 at 11:37 pm

Trump will drag on the Canadian auto tariff threat for the next many months by which time the auto sector itself will no longer have any confidence in investing in Canada. Trump is going to scuttle Selfie boy’s re-election. Trump enjoy’s having power over others especially the weaker ones he is kind of like that but Canada will pay dearly for T2’s post G7 threat.

PS; the US Fed will hike interest rates far more aggressively than we imagine. The US Fed is one group Trump cannot bully.

#78 Drill Baby Drill on 07.31.18 at 11:41 pm

DELETED

#79 TFS on 08.01.18 at 12:11 am

Hi Garth

What is your view on appointing a Corporate executor in a will

Our current executor is moving to UK and I don’t think it’s practical for her to continue in the role. We are still young (50 something) but want to deal with this sooner rather than later.

Net worth currently around $5mil so fees not insignificant but should be a lot cleaner appointing a proffesional firm?

#80 jane24 on 08.01.18 at 12:16 am

15. Christian

In a way I wish that dementia only takes 4.5 years to kill. My mum has been in a nursing home for 12 years waiting for God and there is very sadly very little of my mother left. Doctors say that her heart and lungs are great so she could be in residence for many years yet. Don’t distribute Mum’s funds yet, she will need them herself, especially when it all gets too much for the supporting child to bear and she has to be moved into a home at $5000 a month plus.

I want to hear from that poster who drove us all potty these last few years claiming that Vancouver property would never go down as it was the best place on earth and all earthlings wanted to move there. Where is he now?

#81 Exurban on 08.01.18 at 12:51 am

#34 Nonplussed

Agree with your point that most of Canada is uninhabitable. However, the oft-stated factoid that “90% of Canadians live within 100 miles of the U.S. border” is not actually true. Edmonton, Calgary, Regina, Saskatoon, Ottawa, Quebec City, Halifax and St. John’s are all over 100 miles from the border. I couldn’t tell you what the actual stat is, but it’s not 90%.

#82 Smoking Man on 08.01.18 at 1:42 am

Mayday for liberals.

In spite of the fact that social media is baning conservative voices for the mid terms and the Canada fed election next year.

Wont matter, MSM keeps showcasing how insane they are. They are doomed. Starting to wonder if that was the plan all along. The Machine works in 4 dimensional chess.

I play in 9 dementions.

#83 Karma on 08.01.18 at 2:35 am

#6 Stan Brooks on 07.31.18 at 5:25 pm
“There is no growth.

GDP is up 0.5 % with inflation up at least 1 %, maybe 2 or 3 + (check your grocery and energy bills) so there is real contraction.

But the sheeple is sooooooooooooo stupid.

If the economy was so hot interest rates should have been 6 % and up.

It is just a trick, smoke and mirrors of humongous inflation and no interest rate increases any time soon, mark my word.

Inflation/cost of living of 8 % +, interest rates at 1.25 %.

For 10 more years.

As I said, this ignorangt sheeple is just soooooooo stuuuuuuuuuuupid.”
————————————-

Hey Mr. Smarty-Pants, are you aware of what the 0.5% GDP growth was measuring? The people in the link you posted afterwards surely didn’t understand the difference between the Canadian number and the American GDP number. But they commented as though they did.

Hint: one was something called “Month-over-month” (Canada) and the other was “Annualized quarter-over-over”. The latter is a fake number that shouldn’t be taken too seriously.

If the former (0.5%) was annualized, it would be closer to 6.0%. But if we actually used the more comparable annualized numbers, Canada would be outperforming the US. But they are different time frames: May/April in Canada, and April-June/Jan-March in the US. So they aren’t exactly worth comparing.

#84 AnonEMouse on 08.01.18 at 2:44 am

I couldnt resist….

@ImGonnaBeSick

What a dumb ass comment, only surpassed by there is even more available surface area on Mars go move there if you cant afford YVR or TO

#85 Nonplused on 08.01.18 at 3:19 am

PS Garth I think you just called me a moron on par with “Drill Baby Drill”. Not really fair. I know you don’t like the comments section and would prefer not to have it, so after over 10 years I am going to help you with that.

Good thing, with a thin skin like that, you don’t run a blog. Get over it. – Garth

#86 Wrk.dover on 08.01.18 at 6:11 am

#81 Exurban on 08.01.18 at 12:51 am
#34 Nonplussed

Agree with your point that most of Canada is uninhabitable. However, the oft-stated factoid that “90% of Canadians live within 100 miles of the U.S. border” is not actually true. Edmonton, Calgary, Regina, Saskatoon, Ottawa, Quebec City, Halifax and St. John’s are all over 100 miles from the border.

—————————–

You are very wrong about three of these. Two more are very close. And, 90% do live that close. You an American geographer? Know how to use Google Earth to measure distances?

#87 Ace Goodheart on 08.01.18 at 7:24 am

Wild Bill has declared he is done with tampering in the CDN house markets (for now).

Fordsie Sr. Won’t touch the Ontario market.

So That’s the end of new housing taxes in Ontario for the foreseeable future.

Moral of the story? Don’t complain about things.

Complaining always leads to two things:

1. Higher taxes
2. Longer wait times

Look what happened in Vancouver.

Remember when you could go to a McDonald’s and get a big Mac off the heat rack pre made?

People complained.

Now you have to wait while they cook it.

Don’t complain. It makes things worse

#88 Tater on 08.01.18 at 8:15 am

#26 Suburban Guy on 07.31.18 at 7:11 pm
Yes, POA have a fiduciary duty to the aging parent, but I know of one case where the Estate was over 5 mil and the POA (my Ex) refused to give even a nickel (under lawyer’s advice) to her siblings who were experiencing job related financial difficulties. Mom’s dead and the sibs no longer speak to my Ex. Each got 1.5 mil and each grandkid got 100K.

I was part of the family and know that Mom would have helped the kids. No use having that kind of money while your kid has to eat cat food because of job loss.

Great advice that lawyer gave. /sarc/

Nothing’s black and white, Garth.
—————————————————————-
No, it’s pretty black and white. The POA’s only obligation was to the mother. Trying to divine what she would have done had she been able only exposes the POA to liability. And don’t give me that “Oh, no one would have sued the POA over it. They’re family” nonsense. Family sues family all the time in these situations over the smallest of slights.

#89 Richard Head on 08.01.18 at 8:28 am

Accompanying that is ensuring you have a power of attorney to look after things if you need caring for, and that the person you choose is not a dickhead. – Garth
——————————————————————–

HEY! I resemble that remark!

https://www.youtube.com/watch?v=RrcXYn6HqX8

#90 Headhunter on 08.01.18 at 8:42 am

63 crowdedelevatorfartz on 07.31.18 at 9:52 pm
Tonights CBC “news”
152,000 govt employees stuck with the “disasterous” Pheonix Payroll system.
1 BILLION spent on trying to “fix it” and another 1 Billion may be needed.
_________________________

system is working exactly as planned.. Just like Bombardier with the new Tdot street cars all have to go back for welding. These are make work projects. Perfectly designed to fleece us rubes. Possibly some $$$ getting funneled back into politics

Its the new biz model. Sir John A almost never made it as they were all pissed he was using $$$ from the transcanada railroad to fuel his party, they dont teach you that in school (indoctrination centre) History repeats “future proves past”

Tesla same. Never meant to turn a profit, thats not the biz model.

#91 conan on 08.01.18 at 8:55 am

POA trustees have to act in the best interests of the person that they are helping. A brain dead GIC, has zero risk. If bond and equity markets plummet the trustee can be held liable. A balanced portfolio, with low fees is not without risk.
Get legal advice.

The POA cannot be held liable for decisions genuinely made in the best interests of the appointer. In many cases a POA is tasked with ensuring there is an income stream for life to meet the needs of an institutionalized person, which cannot be met with a GIC portfolio. If the money were to run out through too-conservative investing strategies then, by your logic, there would be liability. You made that up. – Garth

#92 neo on 08.01.18 at 9:07 am

The US 10 year finally hit 3.00% on the nose this morning.

Let’s see how long that lasts…

#93 James on 08.01.18 at 9:08 am

#82 Smoking Man on 08.01.18 at 1:42 am
Mayday for liberals.
In spite of the fact that social media is baning conservative voices for the mid terms and the Canada fed election next year.
Wont matter, MSM keeps showcasing how insane they are. They are doomed. Starting to wonder if that was the plan all along. The Machine works in 4 dimensional chess.
I play in 9 dementions.
___________________________________________
No they are not banning conservative voices you crazy old coot. If you feel that the likes of Alex Jones is a conservative voice then you’re delusional old man.
BTW I thought old men like you sat around and scratched their balls and talked about the weather? Can’t fathom you playing chess, nope, not there, nope just not enough discipline for the likes of you to play chess.

#94 ImGonnaBeSick on 08.01.18 at 9:10 am

#84 AnonEMouse – haha, equating the rest of Canada to Mars… I’m sure you joking around, but you city kids make me laugh. Get out of your bubble – it’s nice out here. Vancouver is a drug addict cesspool with a nice park, and Toronto is probably the ugliest city in Canada, filled to the brim with the most annoying people on earth. If you don’t have a decent 6-figure wage in these cities, what the h*ll are you doing there? Go visit if you must… Don’t live there. Unless you want to poor and miserable.

#95 Gravy Train on 08.01.18 at 9:12 am

#85 Nonplused on 08.01.18 at 3:19 am
“PS Garth I think you just called me a moron on par with ‘Drill Baby Drill.’ Not really fair. I know you don’t like the comments section and would prefer not to have it, so after over 10 years I am going to help you with that.”

Good thing, with a thin skin like that, you don’t run a blog. Get over it. – Garth

Don’t go, Nonplused. Anne Wilson will be terribly disappointed if you leave; if she weren’t menopausal, she’d have your babies! Remember? (See yesterday’s comment section.)

Besides, I’ll have one fewer to skewer in the steerage section! It’s bad enough that Floppy left us so unceremoniously! Come back, Floppy! We miss you! :)

#96 James on 08.01.18 at 9:22 am

I have a POA for my mother and father. They insisted and set it up. My Brother was dead against it and felt it was too morbid to even discuss. He is a bit of a prude. Then I set one up for my wife and I just in case. She agrees until I dump the Harley for fun drives on the weekend. My wife says to me “your bike rides go through dangerous areas for bikers where the idiots on the road can take you out in an instant”. She doesn’t want the extra worry of not being able to make decisions on taking care of my vegetable corpse until I pass. I am considering losing the Harley as a wife three kids in tow are a big responsibility. My wife is smiling right now secretly going get rid of the bike, get rid of the bike in her mind. Soon I will get rid of the bike as it is only being used once or twice a month but may consider putting the $$ towards a used NSX-T. I loved that car when I was a teenager.

I hear wingsuit gliding off mountains is cool. – Garth

#97 Stan Brooks on 08.01.18 at 9:28 am

#83 Karma on 08.01.18 at 2:35 am

Hey Mr. Smarty-Pants, are you aware of what the 0.5% GDP growth was measuring? The people in the link you posted afterwards surely didn’t understand the difference between the Canadian number and the American GDP number. But they commented as though they did.

Hint: one was something called “Month-over-month” (Canada) and the other was “Annualized quarter-over-over”. The latter is a fake number that shouldn’t be taken too seriously.

If the former (0.5%) was annualized, it would be closer to 6.0%. But if we actually used the more comparable annualized numbers, Canada would be outperforming the US. But they are different time frames: May/April in Canada, and April-June/Jan-March in the US. So they aren’t exactly worth comparing.

I am perfectly aware what the GDP growth was measuring. Did you read the article and stats Canada ‘data’? It measured increases in retail sales due to increased prices, i.e. inflation and increased construction activities due to ever increasing debt.

That 1.7 % increase in retails sales on monthly bases is pretty alarming, we all know that cost of living increases at 8 % + annually, not with the official CPI of 2 %, agree?

So real inflation 8 %, reported inflation 2 %, 6 % growth my misreporting inflation, without actual goods consumption changing.

If inflation hits 15 % you would be announcing 15 % increase in GDP, that is the pathetic part?

I call that ignorance.

#98 Doug in London on 08.01.18 at 9:30 am

Interest rates going up? That’s good news for patient owners of CPD and XPF.

#99 Steerage Dementia on 08.01.18 at 9:51 am

#82 Smoking Man on 08.01.18 at 1:42 am

Mayday for liberals.

In spite of the fact that social media is baning conservative voices for the mid terms and the Canada fed election next year.

Wont matter, MSM keeps showcasing how insane they are. They are doomed. Starting to wonder if that was the plan all along. The Machine works in 4 dimensional chess.

I play in 9 dementions.

Stage 9 dementia… yup that’s obvious.

#100 IHCTD9 on 08.01.18 at 11:27 am

#8 R Vanzo on 07.31.18 at 5:32 pm

The problem is, people want houses. They want a detached or at least a townhouse to raise their kids. They were given this lifestyle, know it is a good one and want to offer their offspring too. But no matter how long they wait, prices simply don’t budge. A home for a family of four in Toronto is still above 1 million. Even if they go to the nearby towns, Markham, Mississauga, Vaughan, prices are the same or higher. It is a complicated time we live in.
________

To me it is simple. Prices will always be as high as possible – this goes for just about anything.

SFD RE in big cities will never be cheap, or even affordable – it never was. IMHO, the proper price for a decent, new, SFH in a GTA subdivision is around 700-900K – or minimum double of what the same thing costs out here in the tundra – same as 20 years ago – same as it ever was.

It boils down to what folks can pay. What can the top 10% of RE buyers scrape (borrow, beg and steal) together to buy a house? That’s your new home price support right there.

If a nice new GTA SFD costs 900K, that’s a 4500.00/month payment at 3.5%. Is that doable for a white collar dual income top 10% first time buyer couple? I say yes (but it still sucks). It’s easy for a move up buyer who will put 100’s of thousands down thanks to the sale of their old home.

We can forget about any new GTA SFD costing less than 700K ever again. If that is too expensive, then it might be time to do some “life math”.

Waiting is a waste of time if 900K is too much at 3.5%.

#101 Oft deleted much maligned stock.picker on 08.01.18 at 12:14 pm

DELETED

#102 Zapstrap on 08.01.18 at 12:18 pm

#67 FOUR FINGERS WATSON on 07.31.18 at 10:04 pm
You worry too much. Just today, our fearless leader sent his two best men to Washington . Ben Dover and Phillip McAvity have years of experience dealing with this sort of crap. They will sort this out in no time. Relax.

Not so sure … I heard he sent Jim Fitzgerald and Gerald Fitzjim …

#103 Stan Brooks on 08.01.18 at 12:43 pm

#100 IHCTD9 on 08.01.18 at 11:27 am

SFHs in some subdivisions – Mississauga, Scarborough, Vauhgan were 6 times lower than they are today just 15 years ago.

There is no jump in income/economy to justify 6 times increase in prices. If not for CMHC prices would have been 3 times lower than today.

Detroit and Chicago, Philadelphia are big cities and prices there are not going up.

With the disappearance of jobs even 450 k for SFH, 300 for a condo in GTA is too much IMHO.

#104 Wrk.dover on 08.01.18 at 12:48 pm

IHCTD9 That BBC engine you mentioned yesterday does sound great in the parasail jet boat named ‘petty cash’ down at the beach in Negril, but is total overkill on the road, just like living in GTA is, financially.

They used to put 350’s in 66 pass school buses. They got there. Before that straight sixes built the nation.

My built, high roof 3/4 ton van with the old time SBC 4 bolt, aftermarket heads and long ceramic coats, etc., is set up as a 93/4/5 TBI with the L460E pulling at 1300 rpm set on cruise 101 returning 14.5 mpg. (3:00 rear)

It’s all anyone needs, more than most need. And it cost very very little, all components new. One month GTA mortgage would cover it, inc the trans, almost.

#105 conan on 08.01.18 at 12:49 pm

You made that up. – Garth

Yes, and no. Depends on the instructions or wishes of the people/estate.

Sometimes, not one red cent, can be lost.
GICs from an insurance company can pay an income, they’re also redeemable.
Heck, some companies pay extra if the redeemed GIC are above market rates.

Am I GIC warrior? Nope, but I like the guarantees and features offered by some non bank companies.

When I want income, and guarantees, I look at insurance companies. Some of them have great product. The trick is understanding the product’s sweet spots and making them work for the client.

#106 Newcomer on 08.01.18 at 1:01 pm

#100 IHCTD9 on 08.01.18 at 11:27 am

To me it is simple. Prices will always be as high as possible – this goes for just about anything.

It boils down to what folks can pay. What can the top 10% of RE buyers scrape (borrow, beg and steal) together to buy a house? That’s your new home price support right there.
—-

Except for potatoes. People generally pay as little as possible for potatoes. And gasoline. And cell phone plans. And rent. In fact, when it comes to “just about anything” people look for deals, even though they could theoretically afford to pay more. They don’t ask themselves, “What is the most expensive potato I can buy?” They just buy the cheapest one that fits their needs.

For almost all of the population, in almost all places, for almost all of recorded history, this has been true of real estate as well. Sometimes this predictable pattern is disturbed by a temporary mania, like with Pet Rocks, Tickle-Me Elmo and Canadian real estate, but in the long-term markets return to rational pricing.

#107 IHCTD9 on 08.01.18 at 1:20 pm

#45 ImGonnaBeSick on 07.31.18 at 8:58 pm
#34 Nonplused – I know.. I was being a bit facetious, but the point remains. It’s a large country to spread your wings in.. I’ve been to the east and west coast, and every province in between many times (Haven’t made it to the territories yet.) It’s a big beautiful country and if they made it a bit easier to travel (open up transit to more companies?) I think Canadians wouldn’t be so afraid to move around.

PS: I really enjoy your posts, my second favourite thing about reading this blog nightly.
_______

I think cities are simply just popular, and for a multitude of reasons. Youth love them for the excitement of all the different things going on, immigrants love them for the fellowship they can have with their own countrymen. Everyone recognizes the diversity of employment and quantity of jobs available.

Lots of folks desire to live in a big bustling city.

Problem is the lifestyle one can expect to lead via a typical Canadian income in a place like the GTA sucks, and keeps getting worse. In 2015, the median total household income in Toronto was $65,829. That sucks yuge when houses cost 7 figures and rents are insane.

The MHI in my desolate quadrant of the boreal forest circa 2015 was 67K, and a 1 million GTA house costs under 400K here. If you wander through the stunted spruce trees a little bit – you can find fixer-uppers for under 150K

The GTA represents big problems for anyone newly trying to set up shop there these days. The math gets done quick when you can barely put food on the table. There will be wing spreading at this point – even if the flight is not planned nor desired.

#108 Stan Brooks on 08.01.18 at 1:22 pm

Getting dumber, with each generation:

Only 23% of millennials prefer investing to cash—here’s why they’re skeptical of the stock market

https://ca.finance.yahoo.com/news/only-23-millennials-prefer-investing-165900571.html

#109 Leo Trollstoy on 08.01.18 at 1:34 pm

Looks like a steal in West vancouver

http://dailyhive.com/vancouver/vancouver-west-end-micro-unit-rental-2018

#110 Blacksheep on 08.01.18 at 1:35 pm

James # 96,

“Then I set one up for my wife and I just in case. She agrees until I dump the Harley for fun drives on the weekend. My wife says to me “your bike rides go through dangerous areas for bikers where the idiots on the road can take you out in an instant”. She doesn’t want the extra worry of not being able to make decisions on taking care of my vegetable corpse until I pass.”

“I am considering losing the Harley as a wife three kids in tow are a big responsibility. My wife is smiling right now secretly going get rid of the bike, get rid of the bike in her mind. Soon I will get rid of the bike as it is only being used once or twice a month but may consider putting the $$ towards a used NSX-T. I loved that car when I was a teenager.”

“I hear wingsuit gliding off mountains is cool. – Garth”
—————————————————–
I can relate to this.

Wife bought a new convertible Camaro last year and told me she was never getting on the Harley again. She sighted to many A-hole drivers on the road and of course, the dreaded helmet hair!

So…I decided It was time to turn the page and I just watched a stranger ride off on my 2008 Street Glide last night…little sad.

Good news is now I’m looking for a new, FASTER / LIGHTER bike with out the constraints of needing something that accommodates two up riding.

Liking: Yamaha MT-09, Aprilia Shiver 900, Husqvarna 701 D.S. or maybe a saucy little Husky Svartpilen 401.

All are light and fast, which is the exact opposite of the 800 pound / 75 H.P. dresser Harley I just sold.

Sometimes, change is good.

#111 interested to know on 08.01.18 at 1:50 pm

#66 Your arrogance blinds you. Go ahead and google [email protected] Tuberculosis? really? That’s why I posted it here as the letter had ‘[email protected]’ and I doubted that a lifetime of smoking was the intended destination for financial advice.

#112 Stan Brooks on 08.01.18 at 2:08 pm

#107 IHCTD9 on 08.01.18 at 1:20 pm

The GTA represents big problems for anyone newly trying to set up shop there these days. The math gets done quick when you can barely put food on the table. There will be wing spreading at this point – even if the flight is not planned nor desired.

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

The bottom line is:

No smart/intellectual person will settle for the premium that GTA demands in terms of cost of living considering taxes, lifestyle, wages.

Only outright idiots and mediocre new comers will even remotely consider it.

Even settled but smart are leaving.

The place is doomed.

#113 Lost...but not leased on 08.01.18 at 2:26 pm

GARTH:

Re: reply to #91 conan and fiduciary obligations of POA.

My late mother had most of her liquid assets in GICs prior to dementia.

My understanding is my sibling simply rolled these over…….(which IMHO , as I alluded to in previous posts strong suspicions my mothers financial advisor was the one who created the mess ie…he referred my sibling to a slimeball lawyer so as to keep my mother as a client and manage their funds).

Conclusion= my sibling as POA and Committee did NOT look after my mothers best interests.

My sibling placed her son in my mothers home from Nov.2014-to Jan 2018..rent free. My sibling abused her POA and ultimately acquired Committeeship….so in essence had 100% control over my mothers finances.

I also suspect all utility costs were paid, as her son is a useless student. I estimated the lost potential RENT in the $200,000 range.

There is a gray area re: principal residence for tax purposes….ie aka my mother , while in a seniors home, could deem one outside home as principal residence,….or that my siblings useless son living in the home was necessary for principal residence designation….

aka a senior in a care home =what re: principal residence designation of existing home.

Your thoughts and views would be appreciated.

We are into probate now…

#114 IHCTD9 on 08.01.18 at 2:56 pm

#106 Newcomer on 08.01.18 at 1:01 pm

Except for potatoes. People generally pay as little as possible for potatoes. And gasoline. And cell phone plans. And rent. In fact, when it comes to “just about anything” people look for deals, even though they could theoretically afford to pay more. They don’t ask themselves, “What is the most expensive potato I can buy?” They just buy the cheapest one that fits their needs.

For almost all of the population, in almost all places, for almost all of recorded history, this has been true of real estate as well. Sometimes this predictable pattern is disturbed by a temporary mania, like with Pet Rocks, Tickle-Me Elmo and Canadian real estate, but in the long-term markets return to rational pricing.
______

You’ve completely missed the meaning of “Prices will always be as high as possible”.

If all a seller can get for a potato is $0.01, that then is the highest price possible.

If you walked up to the vendor and said “the price of your spuds is too high, I want a deal, I’ll pay you .005 each”, but the vendor knows he has sold every potato he can haul to market for $0.01 all summer – he’ll say no. He knows the potato market is hot, and that all the potatoes will be gone at the end of the day regardless if you buy one or not.

Then you’ll either pay his price, or go home empty handed.

“Rational pricing” is the highest the market will bear.

#115 Stan Brooks on 08.01.18 at 3:13 pm

https://www.zerohedge.com/news/2018-08-01/wells-fargo-agrees-pay-209-billion-penalty-mortgage-loan-abuses

No worries, Canadian banks are just right, they never underwrote bad loans.

#116 waiting on the westcoast on 08.01.18 at 3:22 pm

25 Trumpocalypse2018 on 07.31.18 at 7:07 pm says… ““Mayday” is right.The countdown has started. 42 Days til September 11.”

I love your resilience but isn’t it risky promoting a date so far in the future. I thought this week was going to be zombie week??? ;-)

#117 Triplenet on 08.01.18 at 3:28 pm

Acronym vs. Abbreviation
…..a self test
MADD, SCUBA, ASAP, CIA, HTML, ROI, NATO, NASA, MIL,
RCMP, FYI, FBI,POTUS

#118 James on 08.01.18 at 3:32 pm

#110 Blacksheep on 08.01.18 at 1:35 pm

James # 96,

“Then I set one up for my wife and I just in case. She agrees until I dump the Harley for fun drives on the weekend. My wife says to me “your bike rides go through dangerous areas for bikers where the idiots on the road can take you out in an instant”. She doesn’t want the extra worry of not being able to make decisions on taking care of my vegetable corpse until I pass.”

“I am considering losing the Harley as a wife three kids in tow are a big responsibility. My wife is smiling right now secretly going get rid of the bike, get rid of the bike in her mind. Soon I will get rid of the bike as it is only being used once or twice a month but may consider putting the $$ towards a used NSX-T. I loved that car when I was a teenager.”

“I hear wingsuit gliding off mountains is cool. – Garth”
—————————————————–
I can relate to this.

Wife bought a new convertible Camaro last year and told me she was never getting on the Harley again. She sighted to many A-hole drivers on the road and of course, the dreaded helmet hair!

So…I decided It was time to turn the page and I just watched a stranger ride off on my 2008 Street Glide last night…little sad.

Good news is now I’m looking for a new, FASTER / LIGHTER bike with out the constraints of needing something that accommodates two up riding.

Liking: Yamaha MT-09, Aprilia Shiver 900, Husqvarna 701 D.S. or maybe a saucy little Husky Svartpilen 401.

All are light and fast, which is the exact opposite of the 800 pound / 75 H.P. dresser Harley I just sold.

Sometimes, change is good.
_________________________________________
Surely a nice bike and I can feel the nostalgic pain you felt already as my time is coming as well, but alas I’m already in sell mode and it’s just a toy. You are correct change is good so I’m going from two wheels to four. I’m just glad I rode all these years while I was young.

#119 Fred Jones on 08.01.18 at 3:37 pm

Does anyone have accurate data on the Calgary housing market ?

I have read the Creb data and it seems far-fetched.

#120 Waiverless on 08.01.18 at 3:44 pm

98 Doug in London on 08.01.18 at 9:30 am
Interest rates going up? That’s good news for patient owners of CPD and XPF

—————–

Pretty sure XPF has mostly perpetual not rate reset preferred shares. Probably want to stay away from that one in a rising rate environment

#121 CS on 08.01.18 at 3:52 pm

Interested in the comments about POA’s and criminal activity.Is the legal route the best way to deal with a POA that does not have the persons best interest at heart and/or is spending funds on themselves?

#122 jess on 08.01.18 at 3:59 pm

Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) based on the bank’s alleged origination and sale of residential mortgage loans that it knew contained misstated income information and did not meet the quality that Wells Fargo represented. Investors, including federally insured financial institutions, suffered billions of dollars in losses from investing in residential mortgage-backed securities (RMBS) containing loans originated by Wells Fargo.

“This settlement holds Wells Fargo accountable for actions that contributed to the financial crisis,” said Acting Associate Attorney General Jesse Panuccio. “It sends a strong message that the Department is committed to protecting the nation’s economy and financial markets against fraud.”

“Abuses in the mortgage-backed securities industry led to a financial crisis that devastated millions of Americans,” said Acting U.S. Attorney for the Northern District of California, Alex G. Tse. “Today’s agreement holds Wells Fargo responsible for originating and selling tens of thousands of loans that were packaged into securities and subsequently defaulted. Our office is steadfast in pursuing those who engage in wrongful conduct that hurts the public.”

Wells Fargo Agrees to Pay $2.09 Billion Penalty for Allegedly Misrepresenting Quality of Loans Used in Residential Mortgage-Backed Securities

https://www.justice.gov/opa/pr/wells-fargo-agrees-pay-209-billion-penalty-allegedly-misrepresenting-quality-loans-used

“We are pleased to put behind us these legacy issues regarding claims related to residential mortgage-backed securities activities that occurred more than a decade ago,” Wells Fargo CEO Tim Sloan said.

rlly?
…”The bank pointed out that the Justice Department has previously reached settlement agreements with other banks over similar issues, and that “importantly, there were no claims that individual customers were harmed as a result of the alleged conduct.”

====violation tracker====
https://violationtracker.goodjobsfirst.org/parent/wells-fargo

Parent Company Name:
Wells Fargo
Ownership Structure:
publicly traded (ticker symbol WFC)
Headquartered in:
California
Major Industry:
financial services
Specific Industry:
banking
Penalty total since 2000:
$12,585,199,147
Number of records:
87

#123 jess on 08.01.18 at 4:02 pm

The Department executed non-prosecution agreements with 80 banks between March 2015 and January 2016. The Department imposed a total of more than $1.36 billion in Swiss Bank Program penalties, including more than $99 million in penalties from Lombard Odier. Pursuant to today’s agreement, an addendum to Lombard Odier’s non-prosecution agreement, Lombard Odier will pay to the Department an additional sum of $5,300,000, and will provide to the Department supplemental information regarding its U.S.-related account population, which now includes 88 additional accounts.

Every bank that signed a non-prosecution agreement in the Swiss Bank Program had represented that it had disclosed all of its U.S.-related accounts that were open at each bank between August 1, 2008, and December 31, 2014. Each bank also represented that it would, during the term of the non-prosecution agreement, continue to disclose all material information relating to its U.S.-related accounts. In reaching today’s agreement, Lombard Odier acknowledges that there were certain additional U.S.-related accounts that it knew about, or should have known about, but that were not disclosed to the Department at the time of the signing of the non-prosecution agreement. Lombard Odier provided early self-disclosure of their unreported U.S.-related accounts and has fully cooperated with the Department.

“The Department of Justice and Internal Revenue Service have capitalized on information obtained under the Swiss Bank Program to analyze the flow of money of U.S. tax evaders from closed Swiss bank accounts to banks in other countries. As a result, the Department has learned more about the methods of those who continue to evade their tax obligations and those institutions that assist them,” said Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Department of Justice’s Tax Division. “I urge any banks that aided and abetted in these schemes, or that have received money from closed Swiss bank accounts owned or controlled by persons or entities that are U.S. related, to contact the Tax Division and disclose complete and accurate information about these activities before they are contacted by the Division or the IRS.”

#124 oncebittwiceshy on 08.01.18 at 4:13 pm

Jas on 07.31.18 at 10:08 pm
RE is very local…..very local.
“Surrey is booming because 1000 folks moving here each month.
1% to 1.5% increase in IR won’t dent this local market much.”

<<<<<<<<<<<<<<<<<<<<<

Hey Jas, maybe you should try and convince the real estate agents in Surrey.

http://www.sukhbrar.ca/blog/32565/real-estate-market-update-in-north-delta-amp-surrey-bc-summer-2018

"We are now in The Hyper Supply Phase of The Real Estate Market Cycle, and it will dictate how hard the impact of The Recession Phase in 2018 will be."

#125 jess on 08.01.18 at 4:13 pm

According to three federal indictments unsealed today, Ukrainian nationals Dmytro Fedorov, 44, Fedir Hladyr, 33, and Andrii Kopakov, 30, are members of a prolific hacking group widely known as FIN7 (also referred to as the Carbanak Group and the Navigator Group, among other names).

FIN7 used a front company, Combi Security, purportedly headquartered in Russia and Israel, to provide a guise of legitimacy and to recruit hackers to join the criminal enterprise. Combi Security’s website indicated that it provided a number of security services such as penetration testing. Ironically, the sham company’s website listed multiple U.S. victims among its purported clients. ….

In January 2018, at the request of U.S. officials, foreign authorities separately arrested Ukrainian Fedir Hladyr and a second FIN7 member, Dmytro Fedorov. Hladyr was arrested in Dresden, Germany, and is currently detained in Seattle pending trial. Hladyr allegedly served as FIN7’s systems administrator who, among other things, maintained servers and communication channels used by the organization and held a managerial role by delegating tasks and by providing instruction to other members of the scheme. Hladyr’s trial is currently scheduled for Oct. 22.

Fedorov, a high-level hacker and manager who allegedly supervised other hackers tasked with breaching the security of victims’ computer systems, was arrested in Bielsko-Biala, Poland. Fedorov remains detained in Poland pending his extradition to the United States.

In late June 2018, foreign authorities arrested a third FIN7 member, Ukrainian Andrii Kolpakov in Lepe, Spain. Kolpakov, also alleged to be a supervisor of a group of hackers, remains detained in Spain pending the United States’ request for extradition.

https://www.justice.gov/opa/pr/three-members-notorious-international-cybercrime-group-fin7-custody-role-attacking-over-100

The indictments are the result of an investigation conducted by the Seattle Cyber Task Force of the FBI and the U.S. Attorney’s Office for the Western District of Washington, with the assistance of the Justice Department’s Computer Crime and Intellectual Property Section and Office of International Affairs, the National Cyber-Forensics and Training Alliance, numerous computer security firms and financial institutions, FBI offices across the nation and globe, as well as numerous international agencies. Arrests overseas were executed in Poland by the “Shadow Hunters” from CBŚP (Polish Central Bureau of Investigation); in Germany by the LKA Sachsen – Dezernat 33, (German State Criminal Police Office) and the Polizeidirektion Dresden (Dresden Police); and in Spain the Grupo de Seguridad Logica within the Unidad de Investigación Technologica of the Cuerpo Nacional de Policía (Spanish National Police)..

#126 IHCTD9 on 08.01.18 at 4:21 pm

#112 Stan Brooks on 08.01.18 at 2:08 pm

The bottom line is:

No smart/intellectual person will settle for the premium that GTA demands in terms of cost of living considering taxes, lifestyle, wages.

Only outright idiots and mediocre new comers will even remotely consider it.

Even settled but smart are leaving.

The place is doomed.
___________________________________________

At some point the costs will obviously outweigh the benefits.

Then many will bail out to less packed areas of the country – but few will get a job. Just not many jobs out here. That’s why everyone packs themselves into the GTA in the first place.

I wonder what they will do? You can’t have thousands streaming out into the countryside every year – there’s no work for them. We can take the retirees, but plan on starting your own successful business if you still need an income.

#127 Ubul on 08.01.18 at 4:43 pm

#110 Blacksheep

…Wife bought a new convertible Camaro last year and told me she was never getting on the Harley again. She sighted to many A-hole drivers on the road and of course, the dreaded helmet hair!…

So the rumoured HD special vibe for female riders on the back seat was a fake feature?

#128 TheDood on 08.01.18 at 4:55 pm

#100 IHCTD9 on 08.01.18 at 11:27 am

…It boils down to what folks can pay. What can the top 10% of RE buyers scrape (borrow, beg and steal) together to buy a house? That’s your new home price support right there.

_______________________

The top 10% don’t beg, borrow, or steal, they simply write a cheque, or use a credit card. Prices are set by whoever the biggest dummies are in the bottom 90%, and unfortunately, this country has no shortage.
_______________________

…..We can forget about any new GTA SFD costing less than 700K ever again. If that is too expensive, then it might be time to do some “life math”.

Waiting is a waste of time if 900K is too much at 3.5%.
_________________________

900K at 3.5% is WAY too much for 95% of the population of Canada, which is why I think you’re probably wrong. RE is local, so whatever the locals can afford will determine price.

#129 Newcomer on 08.01.18 at 5:24 pm

#114 IHCTD9 on 08.01.18 at 2:56 pm
———–
What you said was, “It boils down to what folks can pay. What can the top 10% of RE buyers scrape (borrow, beg and steal) together to buy a house? That’s your new home price support right there.”

That is miles away from, “If all a seller can get for a potato is $0.01, that then is the highest price possible.”

I’m glad you are back peddling, but I think you have a way to go. In the first instance, you claim that prices are set by people who will always be willing to overextend themselves and suffer hardship to buy the most expensive thing they can. In the second instance, you admit that prices are set by buyers. But you go on to imagine a scenario in which, “[The potato seller] knows the potato market is hot, and that all the potatoes will be gone at the end of the day regardless if you buy one or not.” Did you stop to consider what happens when the market is not hot and there is a big pile of high-prices potatoes left at the end of the day?

A short internship in the potato business would probably teach you a lot about markets.
https://www.potatopro.com/topics/potato-prices

#130 Blacksheep on 08.01.18 at 5:32 pm

Ubul # 127,

#110 Blacksheep

…”Wife bought a new convertible Camaro last year and told me she was never getting on the Harley again. She sighted to many A-hole drivers on the road and of course, the dreaded helmet hair!…”

“So the rumoured HD special vibe for female riders on the back seat was a fake feature?”
—————————
Fake ? Nope….

Street Glides are ‘A’ engine rubber mounted designs. That means they shake hard like your traditional Harley. Its not so much the vibes that ladies like, its the bad boy imagery of the brand. Many may dispute this, but it is absolutely applicable with certain members of the fairer sex. Being a happily married dude (and wanting to stay that way) was the main reason I bought a bagger, to bring the wife along, after having a hot rod Harley Night Train first, but since she’s not interested in getting on it anymore, I just didn’t ride it.

Like James said, It’s just a toy…

#131 Gravy Train on 08.01.18 at 5:38 pm

#111 interested to know on 08.01.18 at 1:50 pm
“#66 Your arrogance blinds you. Go ahead and google TN[L]@TB. Tuberculosis? really? That’s why I posted it here as the letter had ‘TN[L]@TB’ and I doubted that a lifetime of smoking was the intended destination for financial advice.”

The nice lady at the bank. :)
https://www.greaterfool.ca/2016/04/22/tnltb-speaks/

#132 Where's The Money Greedo? on 08.01.18 at 6:10 pm

Re: #67 FOUR FINGERS WATSON on 07.31.18 at 10:04 pm
#41 Drill Baby Drill on 07.31.18 at 8:48 pm
…………………………..
You worry too much. Just today, our fearless leader sent his two best men to Washington . Ben Dover and Phillip McAvity have years of experience dealing with this sort of crap. They will sort this out in no time. Relax.
++++++++++++++++++++++=====
Absolutely HEEELARIOUS!!!
Perfect example of our fearless leaders, not their minions.
So I’m thinking Jr’s bent over while Butts Phils his cavity.
And Morneau’s sipping his “pina colada” watching the whole thing via Skype from his villa in Spain.
I’m sure Trump will be doing a bit of driving things home in the next few months.
I’m thinking Jr’s going to have trouble sitting for the next 6 months.

#133 Nonplused on 08.02.18 at 3:41 am

Good thing, with a thin skin like that, you don’t run a blog. Get over it. – Garth

I’m not concerned with some moron I don’t know calling me a moron, but right above where I am typing it says:

“Abusive, obscene or disrespectful commenters will not be published, and are subject to banning from this forum.”

If you’ve every ref’d a sports game, you know you can’t let anyone flagrantly break the rules or all hell breaks loose. It’s your comment section though.

Anyway you usually keep the comment section classy. It’s one of the great things about the website.

I still disagree with you publishing it though, “so and so is a moron” is not much of an addition to the conversation.

And “Drill Baby Drill” should try that in a bar sometime and see what happens. He’s hiding behind his anonymity. It is “outside the code”. I would probably just ignore him, but I’ve met many people who ride motorcycles who wouldn’t let him walk away. You just don’t do that person to person, which is why I contest you don’t do it in a comments section like the Greater Fool either, which is a loyal community of friends who haven’t met each other, are absorbing your advice, and trying to help each other out.