Yields

Let’s have a post without mentioning Trump. Oops. Too late.

While we’re on the topic, then, Mr. Tariff Man’s wild attack on Mexico surprised markets, hammered stocks and sent investors in the US and Canada scurrying under the protective skirts of government bonds. As equity values sagged, bond prices jumped – the best bond rally in ages. As bonds get more expensive, they pay less. So yields have been falling faster than Jagmeet Singh’s profile.

Remember when the five-year Government of Canada bonds was surging towards the 2% mark a few months ago? Well, check this out. Tariff Man has clobbered that rate.

Gov’t bond yield plops, mortgage rates follow

The result is an inverted yield curve, which sounds painful. That’s when short rates are higher than those paid by long bonds. Sometimes it forecasts recession, but not always. However plunging bond yields also bring cheaper mortgage rates – and that is exactly what’s happened. Combined with the ongoing war for new business among desperate lenders, it means you can now borrow money for five years at barely more than the inflation rate. Some brokers are dishing up loans in the 2.6% range, with sub-3% pretty much the norm for good customers everywhere.

Meanwhile a senior Fed official said Monday he thinks the US central bank will have to cut rates later this year – a dramatic reversal of what was expected just six months ago. Swelling tariffs and hotter trade wars will certainly slow American economic growth, fuel market uncertainty and possibly hasten a recession. Unless Tariff Man tweets that it was all fake news. What a way to run the world.

CAUTION: Below is a question from yet another moister with hundreds of thousands of dollars. Since this irritates the juice out of struggling GenXers with their mortgaged slanty semis and crappy LifeCo mutual fund group RRSPs, feel free to skip the following paragraphs.

“I’ve been reading your blog for a few years now – a nightly ritual after the kids are in bed,” says Brad. “It has helped me resist the siren song of the GTA property market on numerous occasions. As a result, my wife and I – both mid-thirties – have ~$400k spread between pensions, RRSPss, and TFSAs along with big money spent on multiple masters degrees/professional certifications. Appreciate all the advice you’ve provided on this blog. (Enough of an obligatory suck up?)”

Yes, fine. You may continue.

“So I’m starting to see a lot of value in rate reset preferreds again with dividends now in the 6% range and many decent ones changing hands at 25-40% discounts. I know you would recommend buying through an etf, but curious if you’re also seeing a buying opportunity. I see these as being a minimal risk long term with a realistic shot at double digit returns given the discount/low government bond rate. Make sense?”

Brad’s a smart little moister, and he’s spotted one of the potentially best bargains around. Preferreds have been hammered for a while as rates weaken, but as the price falls, yields pop. Not only that, but Mr. Market may be pricing in something which is unlikely to happen – a rate cut in Canada. In any case, for investors looking for fat yield and happy to buy stuff on sale, this is one of those moments.

I asked my portfolio manager pal Ryan for a few words on the subject, between Porsche waxings. Herewith:

It’s been a rough start to the year for the Canadian preferred share market with prefs down 1.4% including dividends versus the TSX up 13.4%. The main driver of the recent weakness has been the big decline in government bond yields with the Government of Canada (GoC) 5-year yield falling from 1.90% at the start of the yield to 1.33% currently. Like 5-year Canadian fixed mortgage rates, the GoC 5-year yield is the key benchmark interest rate for the Canadian pref market. Now what’s interesting is the Canadian overnight benchmark rate sits at 1.75% currently, well below the GoC 5-year yield of 1.33%. To me this says that the bond market is pricing in interest cuts in the coming months, which we don’t believe is in the cards. My view is the Bank of Canada keeps rates steady versus actually cutting them, which if correct, could lead to a rise in government bond yields and a recovery in the pref market. Essentially, the bond market has priced in a much slower economy/recession, which we believe is unlikely to occur over the next 9-12 months.

With the steep decline in the GoC 5-year yield it has created a lot of value in the Canadian pref market, in our view. Currently the Canadian pref market is yielding 4.95%, which is the highest level since late 2016 and is 360 bps above the GoC 5-year yield. It gets even better. Since preferred shares pay dividends, which are taxed at a lower rate than interest income, when you put them on an interest equivalent basis (multiply the current 4.95% dividend yield by roughly 1.32% to account for the preferential tax treatment of dividends) you get a bond equivalent yield of 6.50%. Compare that to government bonds yielding roughly 1.3%, GICs yielding 2% to 2.5% and corporate bonds around 3%.

So with the recent pref weakness you’re getting a nice juicy yield of roughly 5% plus the potential for some capital appreciation should the bond market be incorrectly pricing in a slowdown/recession and the GoC 5-year yield starts to rise as we expect. Not a bad risk reward right now.

Canadian Prefs Are Offering the Highest Yields Since 2016

Well, as excited as Ryan gets about prefs, remember they are but one class of assets that a well-diversified and balanced portfolio should contain. In the model we’ve discussed here often, they make up about half of the fixed-income (40%) component.

84 comments ↓

#1 Arnoldziffle on 06.03.19 at 4:45 pm

Turned a 20k Resp loan into 2 million plus in RE…in 18yrs…RE alows you to leverage like no other…suggest everyone go into Gold Stocks….stagflation is just beginning….

#2 Mike on 06.03.19 at 4:46 pm

Garth,

I plan on investing in US stocks. Do you think US dollar will sink(or be level) anytime soon against Canadian one?

Or, you think 1 USD = 1.15-1.35 CAD is a norm for foreseeable future(although tough, ignore likes of Trump causing a civil war)?

#3 johnny on 06.03.19 at 5:06 pm

Well as I have said over and over during the past 5 years to Garth is that interest rates CANNOT go up much because the entire world economy is propped up by massive debt. We have basically a phony economy based on people borrowing money they dont have and likely wont be able to pay back..same story for corporations and same story for governments.
Everytime interest rates move up in any meaningful fashion then we have some sort of dislocation in the financial markets. So yes it would not shock me at all if interest rates fell this year after everyone including Garth expected the opposite.

#4 Graphics Girl on 06.03.19 at 5:07 pm

Thanks for the explanation. I was wondering what was going on with my preferred ETF.

I bought CPD a few years ago and noticed that it kept going down. I loaded up with more shares at $12.70 and was thinking of getting more now that’s around $12, because it usually sells for $14.

#5 Brett in Calgary on 06.03.19 at 5:08 pm

My ZPR is currently hurting, but like dead people I do not trade.

#6 FreeBird on 06.03.19 at 5:13 pm

UK’s Rick Mercer on POTUS visit and Brexit
https://youtu.be/Z7yRHQtMQnk

#7 technical analysis?? on 06.03.19 at 5:13 pm

” Sometimes it forecasts recession, but not always. ”

since 1960, an inverted yield curve guarantees a recession follows within 6-12 months.

It absolutely does not. – Garth

#8 mike from mtl on 06.03.19 at 5:23 pm

I dunno, CDN prefs have been an awful buy and hold. Obviously a new buy is on sale now, but 3,4,5 yr total return is terrible – should have bought PFF.

It seems you’re quoting YTD on CPD? As ZPR being all rate-reset has fared far worse.

#9 Ridley McSweenie on 06.03.19 at 5:30 pm

My preferreds have been in the ditch lately. Missed my sell last fall. But I’ll happily shop on sale now and just hold these enigmatic stocks until I croak in about 50 years..should recover before then I hope!

Buy preferreds for the yield, not capital appreciation. Such whining. – Garth

#10 Yukon Elvis on 06.03.19 at 5:35 pm

CIBC and BNS common shares are both paying over 5% tax advantaged dividend yields with a capital appreciation upside. Not bad anytime.

#11 NoName on 06.03.19 at 5:40 pm

I want to buy but i dident, DB this morning by my estimation it hit a bottom or its just about there…

Is there anyone who agrees with me?

#12 Whiner Here on 06.03.19 at 5:43 pm

Buy preferreds for the yield, not capital appreciation. Such whining. – Garth

—————————————————-

Lol preferreds always seem to be on sale.

The buy in price is always getting clobbered, 5 years now. If they held their value and we got yield, I don’t think you’d have any whiners.

#13 Penny Henny on 06.03.19 at 5:58 pm

as mentioned back in October, I switched my preferreds for XEI. Same preferential tax treatment at the time a better yeild and best of all CPD has dropped 14.3% since then and XEI is up 5.5%.

And hey TCC, gold is looking handsome again.

#14 Ron on 06.03.19 at 6:09 pm

Ever since central banks around the world cut their deposit rate targets to emergency levels after the 2008 recession, most observers have been waiting for rates to ‘normalize’ back to historical levels. Beginning in 2015, and gaining steam after the 2016 U.S. election, it seemed for a time that we were returning to a world of normal monetary policy after a series of rate hikes by the U.S. Fed.

Recently however, cracks have begun to emerge in the idea that we were returning to normalcy. With the U.S. reaching the lowest level of unemployment in decades, we would expect wage growth and inflation to follow, and yet these measures have remained mostly subdued. What this means, I believe, is that deflationary forces have overtaken inflationary ones in a historic shift that will change the economy forever.

Put simply, there are too many forces conspiring to keep the prices of goods and services down:

Technology has always been a deflationary force, but what we are seeing now is exponential, rather than incremental change. AI, robotics, e-commerce, blockchain, etc. are not only reducing the price of producing goods but also putting pressure on wages as they threaten to reduce or replace the need for human labor.

Globalization, the gig economy, and the rise of women in the global workforce mean the supply of labor is growing faster than demand, keeping a lid on wage growth.

Renewable energy and more efficient extraction of fossil fuels means the marginal cost of energy (an input into every facet of the economy) will continue to trend down towards 0. After all, the sun, wind and nuclear fusion reactions don’t bill their customers.

Given these factors, is there any impetus for the cost of money to rise back to historical levels? It seems not. The rate rise cycle around the world seems to have stalled with markets in the U.S., Canada, Japan, Europe and Australia all signaling that the next move will be a cut.

While many fear that this is a sign of impending recession, I don’t share those fears. I believe that traditional measurements such as GDP fail to reflect the value being created by technology. Traditional economic theory suggests that deflation is a curse because people will stop spending in anticipation of lower prices in the future. And yet, while everyone knows that next year’s iPhone model will offer more bang for their buck, they don’t forego lining up to buy one today.

#15 Bobbie Battlegate on 06.03.19 at 6:16 pm

Hi,
If I invested some dry powder in XPF, would I still get the foreign dividend tax credit for its Non-Maple holdings in the non-registered account? Thanks Blog Dogs!

#16 not 1st on 06.03.19 at 6:16 pm

I think there is better yield out there than preferreds. I don’t like investments that are heavily linked to rate policy shenanigans.

#17 Deplorable dude on 06.03.19 at 6:26 pm

Back from the dead….

Executed North Korean official doing his best impression of being alive…

https://apnews.com/502b038c1720487294e8ea43f5b39d9c

He was not reported dead. – Garth

#18 Willy Wonka on 06.03.19 at 6:27 pm

Odds are now 41% for the US Fed to cut in 15 days. Almost 3 cuts by the December 11, 2019, meeting.

Don’t fight the Fed; they are telling you a recession is imminent.

https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html

#19 tccontrarian on 06.03.19 at 6:44 pm

#13 Penny Henny on 06.03.19 at 5:58 pm

“And hey TCC, gold is looking handsome again.”
——

Unlike pennies, Penny, gold never loses its shine! :)

And if you take the contrarian trade (with patience and discipline among other things), you won’t develop a preference for …

… preferreds! :)

For the record, I have nothing against preferreds or many other assets – but I’ve read too much of Stanley Drukenmiller, and I strive to be a pig!
(for the uninitiated, that just means take as big a position as you can, when you understand what you’re doing and profits are there for the taking – as in 3-digit returns!)

TCC

#20 Nonplused on 06.03.19 at 7:00 pm

Can I get a job at Turner Investments? Sounds like Ryan in doing pretty good. Porsches and trophy wives are good fun but both cost a fortune to maintain. Still, I’m game…

I don’t think the BoC can cut unless the US Fed does. The Canadian dollar does not look particularly strong right now. And while many people argue that a weaker dollar is good for exports, I am not sure that effect is all it’s cracked up to be. For Canadian workers, it’s the same as getting a pay cut. Most of the products I buy aside from food and services are not produced in Canada. We are, for the most part excepting southern Ontario, a resource based economy. We export oil and gas and coal and trees and steel and import pretty much everything else. So while a lower Canadian dollar in theory makes our trees look more attractive, everything we need to buy to get the trees to US and China gets more expensive with the exception of labor. And labor equals wages.

————————

Now time for a little anti-BC ranting.

https://nationalpost.com/news/politics/yes-anti-pipeline-vancouver-really-is-north-americas-largest-exporter-of-coal

Many people do not fully grasp that driver of the BC economy is coal mining and transport, logging & pulp, and oil & gas. Together they make up about 5% of the economy. Tourism from non-residents doesn’t even make the list.

https://www.statista.com/statistics/608359/gdp-distribution-of-british-columbia-canada-by-industry/

Now, 5% may not sound like a lot, but most of the other activities are internal or in support of these industries and do not bring new money into the province. For example the largest category is by far “Retail and rental and leasing”, which is an internal activity and for the most part doesn’t bring new money into the province.

So BC is very dependent on extractive industries. Much like Alberta. But yet they won’t let a pipeline be built. It’s all fine if they are exporting dirty coal through the largest coal terminal in North America, but oil? No way.

It’s hypocritical in the extreme. Even if you take the stance that oil sands has too high of a carbon footprint, what about all this coal that they are exporting, which is even worse?

I conclude that Canada is no longer a country in the true sense of the word. If you can have one province preventing the economic interests of another province from proceeding, even when a very similar project was built many years ago and has been of great economic benefit to the province (supplying Vancouver with most of it’s fuel), you can no longer say the 2 provinces are part of a union. At least not a union of mutual benefit.

And then the hypocrites in Vancouver will say Alberta has to move beyond the oil & gas economy. Meanwhile they are exporting 36.8 million tons of coal a year. It’s just plain sick. And they can’t absolve themselves of the carbon footprint just because the Chinese do the actual burning of the coal. CO2 is CO2 no matter where it’s burned.

#21 reynolds531 on 06.03.19 at 7:14 pm

cpd total annual return since inception of the fund.

.65%

Please tell me I’m whining. You’d be better off in a money market fund.

#22 Darren Lacque on 06.03.19 at 7:36 pm

Keep squeezing the lemon that has no more juice left. If you think 5% to 6% dividend yields today are normal and your not going to lose 10%, 15%, 20% down the road, good luck. Perfect example, HSBC is down around 16% in the last 12 months and has a current dividend yield of 6.24%.

I can sight many examples of this so good luck to you guys trying to squeeze out high yields.

#23 jess on 06.03.19 at 7:38 pm

say what? a toll to walk through your lobby to your condo

https://www.msn.com/en-ca/news/canada/paying-the-toll-hamiltons-royal-connaught-condo-owners-must-pay-fee-to-go-through-the-lobby/ar-AACkRka?li=AAggNb9

#24 Flop... on 06.03.19 at 7:41 pm

Don’t get snappy with me…

M44BC

“A Snapshot of the World Money Transfer Market.

Every year, migrant workers living in other countries send money back to their home countries. The flow of money earned in one country and sent to another is known as remittances. Remittances account for one of the main forms of international money transfers, in addition to foreign direct investment and development aid.

Developed countries like the U.S., Canada, Japan, and the U.K. tend to have more outflows than inflows of remittances.

Developing countries like India, Egypt, and Brazil have more inflows than outflows of remittances.

Remittance flows follow regional patterns. For example, eastern Europe and central America have more inflows, while the Middle East and northern Europe have more outflows.

Unlike foreign direct investment or development aid, most remittances are sent to individuals rather than the state. Remittances are often used for basic necessities like food and housing.

Our latest visualization uses the World Bank’s April 2019 Migration and Remittances data to chart whether each country sends out more remittances (outflows) or receives more remittances (inflows). Countries shaded in pink indicate a higher volume of outflows, while green indicates a higher volume of inflows.

Looking at a more micro level, we can gain a better idea of how remittances vary across countries and regions. In the visualizations below, we map out the remittance inflows and outflows of each country. The size of the country indicates the volume of remittances (the bigger the countries, the more remittances). The pink and green shading are also in direct proportion to the size of the inflows and outflows. All monetary values are expressed in USD.

Among all world countries, the U.S. has the largest number of outflows at $68 billion. Conversely, almost all remittances in Mexico are inflows ($32.3 billion). Countries in the Caribbean vary greatly in whether inflows or outflows are the greater proportion of remittances, while countries in Central and South America tend to have more inflows. A few notable exceptions are Chile, Argentina, and Panama, which all have a higher volume of outflows.

In the Australia and Oceania region, Australia ($8.8 billion) and New Zealand ($969 million) have the highest total remittances. Unlike most of the Oceania region, both of these countries also have a significantly higher proportion of outflows. In Africa, Egypt ($25 billion) and Nigeria ($22.3 billion) have the highest volume of remittances. Interestingly, most of the countries in northern and central Africa have a higher volume of inflows, while countries in the south like South Africa and Angola have more outflows.

Overall, countries in east and southeast Asia tend to have more inflows than outflows. Outliers include the highly developed nations of South Korea and Japan, which send out more money than they take in as remittances. Worldwide, India has the highest volume of inflows, at $69 billion. By contrast, most countries in the Middle East have a greater percentage of outflows. For example, the United Arab Emirates sends $44.4 billion as outflows, but does not have any significant inflows.

In Europe, wealthy northern and western countries like the UK, Germany, Norway, Switzerland, and Luxembourg have a greater volume of outflows. By contrast, countries in eastern Europe like Ukraine, Hungary, and Croatia take in more inflows. At $38.9 billion, Germany has the highest number of total remittances.

Due to the high cost of regular remittance services like Western Union, new innovations in fintech and mobile banking are flourishing, especially in Latin America and sub-Saharan Africa. There is a lot of money on the line for the providers of these services, and newcomers like the TransferWise “borderless” bank account are entering the race to make money transfers as seamless as possible. Even established businesses are trying to get in on the action. Facebook, for example, wants to add cryptocurrencies to the mix to compete in the money transfer market too. As technology related to money transfer continues to evolve, it remains to be seen how these remittance statistics are going to change.”

3 June 2019

Visualization

https://howmuch.net/articles/money-transfer-flows-around-the-world

#25 Lorne on 06.03.19 at 7:44 pm

#12 Whiner Here on 06.03.19 at 5:43 pm
Buy preferreds for the yield, not capital appreciation. Such whining. – Garth

—————————————————-

Lol preferreds always seem to be on sale.

The buy in price is always getting clobbered, 5 years now. If they held their value and we got yield, I don’t think you’d have any whiners.
…..
Agreed…..I would be happy if they simply were somewhere near the value purchased at…instead of depreciating! Wasn’t expecting a rise in value when I was encouraged to buy them for the yield…but extremely disappointed that I have been encouraged to stay in them as they continue to lose value.

#26 Flop... on 06.03.19 at 7:45 pm

Here’s another one that a few people on here have been asking about lately.

It’s golden…

M44BC

https://howmuch.net/articles/gold-reserves-around-the-world

#27 Cristian on 06.03.19 at 7:49 pm

“In any case, for investors looking for fat yield and happy to buy stuff on sale, this is one of those moments.”

Talk about trying to time the markets… What if this is one of the proverbial falling knives?…

#28 Shawn Allen on 06.03.19 at 8:05 pm

#1 Arnoldziffle on 06.03.19 at 4:45 pm

A name only boomers and older (they do exist) would recognize. The pig from Green Acres, Petticoat Junction.

Did that pig negotiate a trailer fee for syndication? If so, that was a wise investment.

#29 crowdedelevatorfartz on 06.03.19 at 8:08 pm

@#27 Christan
“Talk about trying to time the markets… What if this is one of the proverbial falling knives?…”
*****

You mean like the Vancouver Real estate market????

#30 acdel on 06.03.19 at 8:08 pm

#14 Ron
#20 Nonplused

Great Posts!

Thanks!!

#31 Shawn Allen on 06.03.19 at 8:14 pm

Interest on deposit account in broker account

TDB 8150 is still apparently paying 1.6%. Will this continue as rates fall?

Big investors get 1.3% locking in 5 year government bond. Meanwhile 5 year GICs can be had at 3.0% and a bit higher. In this case the little guy gets a better deal than a mega institutional investor.

Big guys go for liquidity. – Garth

#32 AK on 06.03.19 at 8:18 pm

“Essentially, the bond market has priced in a much slower economy/recession, which we believe is unlikely to occur over the next 9-12 months.”
=====================================

The guy from Gluskin Sheff says that the recession has already started. But then again, he is always calling for a recession.

#33 Flop... on 06.03.19 at 8:21 pm

Hey Jaguar, I funded this to smooth the B.C / Alberta kerfuffle.

Consider it as a peace offering.

We’re not all dicks.

Just most of us…

M44BC

https://royalbcmuseum.bc.ca/visit/exhibitions/maya

#34 NoName on 06.03.19 at 8:25 pm

Interesting us plugnin cars sale over the years by make.

https://public.flourish.studio/visualisation/381024/

#35 AK on 06.03.19 at 8:25 pm

#15 Bobbie Battlegate on 06.03.19 at 6:16 pm
“Hi,
If I invested some dry powder in XPF, would I still get the foreign dividend tax credit for its Non-Maple holdings in the non-registered account? Thanks Blog Dogs!”
====================================

50% of the XPF returns are treated as interest income, as it’s derived from the U.S.(PFF)..

Not sure what you mean by “the foreign dividend tax credit”, but any foreign tax that is with-held, you will receive a credit.

#36 crowdedelevatorfartz on 06.03.19 at 8:39 pm

South China sea update
“Bring in the drones……”

https://www.reuters.com/article/us-usa-defense-drones/u-s-to-sell-34-surveillance-drones-to-allies-in-south-china-sea-region-idUSKCN1T42ST

Carriers and their battle groups will be rendered obsolete.

Drone warfare.
For better or worse.
Will be the next level towards ….. Skynet .

https://www.cnbc.com/2018/05/04/china-aims-to-steal-us-a-i-crown-and-not-even-trade-war-will-stop-it.html

#37 mike from mtl on 06.03.19 at 8:48 pm

#15 Bobbie Battlegate on 06.03.19 at 6:16 pm
Hi,
If I invested some dry powder in XPF, would I still get the foreign dividend tax credit for its Non-Maple holdings in the non-registered account?
////////////////////////////////////////////////////////////////////

I don’t see how, regardless of the holding structure it’s still a taxable Canadian account & listed product. TFSA is considered a ‘savings’ not retirement account in eyes of IRS so no bueno there.

The only ways around that are: when a US listed ticker is held inside an RRSP/LIRA or a real US domiciled account (and deal with the IRS).

This is more to do with a US foreign tax treaty than a product – in other words the IRS cares.

#38 crowdedelevatorfartz on 06.03.19 at 8:51 pm

Some happy bedtime reading for all you people that think China is 30 years behind the US…..

Star wars….?

Chinese experimental space craft Shijian 17…..

Best comment of the article

“There are no Rules of Engagement in space because we haven’t gone to war there yet…”

https://breakingdefense.com/2018/04/china-satellite-sj-17-friendly-wanderer/

#39 akashic record on 06.03.19 at 8:55 pm

Big guys go for liquidity. – Garth

For urgent exit or urgent entry?

#40 islander on 06.03.19 at 9:03 pm

https://bmzse.com/managing-partners

https://www.cbc.ca/news/canada/british-columbia/surrey-condo-tower-not-up-to-code-1.5154712

Cutting corners and eroding trust … mission accomplished

‘Investigators find the core walls and headers in Surrey, B.C. Ultra condo tower “appear deficient,” particularly in regards to wind and seismic design.
• wrong, national building code used instead of the code B.C. had in place to design certain parts of the building.
• design was incomplete and certain mandatory calculations weren’t done at all.’

https://www.rew.ca/buildings/4290/ultra-surrey-city-center-surrey-bc

‘The city of Surrey said it doesn’t double check engineers’ designs once they’re submitted as staff are “legally obligated” to rely on design professionals to be honest about abiding by building codes when they submit their paperwork.’

#41 Shawn Allen on 06.03.19 at 9:03 pm

Yes, Central Banks hold Deposits

#14 Ron on 06.03.19 at 6:09 pm said:

Ever since central banks around the world cut their deposit rate targets to emergency levels…

********************************
I think “deposit rate target” is a better description of what central banks do than the usual descriptions like “target overnight lending rate”.

Central banks to my knowledge rarely lend to chartered banks although they can do so in emergencies.

I believe they hold deposits owned by chartered banks.

Yes, they can create such deposits from thin air by buying bonds from chartered banks but at the end of the day they hold deposits owned by chartered banks and rarely lend to chartered banks.

The target overnight lending rate or deposit rate is I believe used to strongly encourage chartered banks to lend to each other at that same rate. In that fashion some chartered banks have deposits with other chartered banks and others have overnight short term daily loans to other chartered banks.

#42 Damifino on 06.03.19 at 9:08 pm

#14 Ron

Technology has always been a deflationary force [….] AI, robotics, e-commerce, blockchain, etc. are not only reducing the price of producing goods but also putting pressure on wages as they threaten to reduce or replace the need for human labor.
————————————

Then why can’t Tesla come anywhere near their production targets?

And yet, while everyone knows that next year’s iPhone model will offer more bang for their buck, they don’t forego lining up to buy one today.
———————————-

iPhone sales are dropping like a Vancouver West detached. With the market almost fully saturated, what is Apple’s incentive to invest in ‘more bang’. They’re going to kill iTunes and start a media streaming subscription service. Sounds like a desperate race to the bottom

#43 Shawn Allen on 06.03.19 at 9:17 pm

GIC versus 5 year government bond

Big investors get 1.3% locking in 5 year government bond. Meanwhile 5 year GICs can be had at 3.0% and a bit higher. In this case the little guy gets a better deal than a mega institutional investor.

Big guys go for liquidity. – Garth

*********************************
Well sure government bonds are infinitely liquid. But once a 5 year bond is issued at say 1.3% then someone is going to collect 1.3% and nothing more and nothing less. The price can rise and fall a bit but a $1000 5 year 1.3% government bonds pays out precisely $13 per year (and okay maybe it is $6.50 every six months) and then gives back the $5000 at the end of year 5. The owners of that bond can change but the cash flows never do.

Meanwhile a little GIC investor can get $30 per $1000 per year. Just interesting that the little guy gets a better deal in this case. Not a great deal but a better deal.

Many huge pension and insurance companies presumably buy and hold 5 year Canada bonds as part of their asset mix. Liquidity would not likely be on their minds? They can’t go and get 3% GICs from banks because there is no deposit guarantee above $100k and they have tens of millions in these things.

Warren Buffet keeps Berkshire’s cash in treasury bills and only treasury bills due to the government guarantee and, in agreement with your point, due to the liquidity.

#44 acdel on 06.03.19 at 9:20 pm

Invest in trees instead of the largest tax ripoff in history called the Carbon Tax.

Great story: https://www.dailymail.co.uk/news/article-7099537/Brazilian-couple-spends-20-years-planting-trees-barren-ranch-create-paradise-animals.html

#45 DON on 06.03.19 at 10:06 pm

Smoke from the Alberta and Yukon fires has hit the Atlantic ocean. Haven’t seen any on the Van Isle yet.

Last year was unbearable, like trying to escape camp fire smoke in a wind gust and never being able to get away and take a clean breath for days, if not weeks.

There will be a run on air filters. Hopefully, we will luck out and it will rain. At least you can breath in the rain.

#46 not 1st on 06.03.19 at 10:14 pm

Lets revisit the fake job report from April. You know the one that had 100,000 job created most in Canadian history and lowest UE rate. But then the GDP went down. Very curious.

Well now the PMI tells the story and its all bunk. Fake economy built on debt.

#47 crowdedelevatorfartz on 06.03.19 at 10:47 pm

@#40 islander
https://www.cbc.ca/news/canada/british-columbia/surrey-condo-tower-not-up-to-code-1.5154712

Wow!
A 40 STORY tower with Engineering Design “issues” ….. in an earthquake zone!?!?!? W…T…F?

I thought the “Cave on Foods” disaster in Burnaby’s Metrotown Mall back in April 1988 was an Engineering cluster frack.
Opening day celebrations with Billionaire owner Jimmy Pattison in attendance …. the cars came crashing down….

https://www.upi.com/Archives/1988/04/23/The-roof-of-a-supermarket-collapsed-Saturday-on-its/3186577771200/

Turns out the engineering firm that designed the grocery store with rooftop parking……didnt have any licensed engineers……. oops.

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

Whats old is new again.

Brace yourselves YVR condo dwellers because if the “Tamm Tacy” engineering firm 1988 “frack up” is any indication…….

ANY building these “engineers” stamp of approval……will be under a govt microscope for any engineering flaws.

Last time Tamm Tacy was heard of.
The “engineers” involved were in a South America country with no extradition …….
designing buildings

#48 Al on 06.03.19 at 11:07 pm

“That’s when short rates are higher than those paid by long bonds. Sometimes it forecasts recession, but not always. ”

The 10yr – 3 month inversion has always predicted recession within about 2 years since WW2. No false positives. As close to a sure thing as we have. It first inverted in March . Let’s see how this plays out..

#49 Arnoldziffle on 06.03.19 at 11:20 pm

HEP.to Horizons covered call etf 10% yeild includes all the best Gold miners…you get capitial gain and get paid ….stagflation…The Fed is paralyzed.Trump wants a rate cut..it’s a no brainer…when the market hits the wall it is going to be collosal…if I ran this financial blog…i would be teching the subscribers what a put is, how to short and the best inverse etfs like HQD HSD HXD HND HOD ?..howbout some lessons here…eh

#50 PastThePeak on 06.03.19 at 11:34 pm

I purchased a few prefs on big discount last Dec. Mostly rate resets but a few perpetuals too (which in the expected rate cut environment should hold their capital value very well).

Prefs are part of the balanced portfolio. Especially when you get them on sale, they produce some good dividend income that allows you to purchase other equities when the prices are right. A synthetic DRIP approach.

For Canadian market I purchase individual issues. For the US I am looking to purchase PFF (in RRSP).

#51 PastThePeak on 06.03.19 at 11:38 pm

#44 acdel on 06.03.19 at 9:20 pm
Invest in trees instead of the largest tax ripoff in history called the Carbon Tax.

Great story: https://www.dailymail.co.uk/news/article-7099537/Brazilian-couple-spends-20-years-planting-trees-barren-ranch-create-paradise-animals.html
+++++++++++++++++++++++++++++

Actually doing something rather than tax it or virtue signal? Government isn’t interested…

#52 Courtley Randlehausen on 06.03.19 at 11:42 pm

Druckmiller thinks rates are going to 0 in the USA. Too early to buy preferreds then? If rates are going lower is the only way to play this with bonds? This will make things interesting with CV amounts in Defined Benefit pension plans..

#53 Russ on 06.03.19 at 11:53 pm

acdel on 06.03.19 at 9:20 pm

Invest in trees instead of the largest tax ripoff in history called the Carbon Tax.

Great story: https://www.dailymail.co.uk/news/article-7099537/Brazilian-couple-spends-20-years-planting-trees-barren-ranch-create-paradise-animals.html
=========================

Direct action at home:
https://powerequipment.honda.ca/one-honda-one-tree

Who doesn’t wish to do the right thang?

When I saw this tree bit in our local Honda ICE flyer I immediately thought that I should get together with IHCTD9 and pitch this idea to Stihl and Husqvarna…

“for every chainsaw purchased between {insert dates} we will plant a tree in Canada.”

“for every *chainsaw* purchased”!
Get it?
Now that, is funny!

#54 Sail Away on 06.04.19 at 12:42 am

A Chinese person paid $4.5M for lunch with Warren Buffett. There’s a lot of completely legitimate money coming out of China. If the Chinese want to use that in our country buying houses, then roll out the red carpet. Alternatively, we can be protectionist and punitive and send that beautiful cash elsewhere. Just like our brilliant strategy with oil investment.

#55 Smoking Man on 06.04.19 at 1:03 am

DELETED

#56 Smoking Man on 06.04.19 at 1:24 am

DELETED

#57 The Great Gordonski on 06.04.19 at 1:32 am

#22 Darren. It’s not solely a matter of squeezing out yields as much as it’s a focus on risk managment. I don’t buy bonds but I do add high yielding equities when common sense has been skewered by inaccurate perception and/or political gaffes.

Good companies will survive short term effects brought on by idiot clowns like Trudeau, but aquisition must be taken on in the context of how much risk Trudeau, a tsunami or volcano adds to the market for Canadian equities. That is where I look to balance risk reward.

Examples are many, but stock picks aren’t welcomed here. Ergo, examine the risk mgmt matrix in companies who’ve been effected by reasons outside their control and which is short term.

#58 Smoking Man on 06.04.19 at 1:33 am

After the game is over, if you lost or had a win. It dont matter.

https://youtu.be/4XvI__yHNow

#59 Buy Low Sell High on 06.04.19 at 6:03 am

Does any blog dog like GOOS-T at these price levels?

#60 Ace Goodheart on 06.04.19 at 6:31 am

Yeah, CDN preferreds have been the game since about last November, getting better all the time. They may end up being the next big thing. I remember back in the 1990s when people started making big money trading junk bonds. These “bond kings” of New York rose up into billionaires and made their mark doing nothing more than riding a yield curve as interest rates plunged and “old bonds” became the most valuable thing on the market.

Preferreds might end up in that category with what is going on right now.

Yeah, The Donald. He is no longer a risk and he won’t win the 2020 election. He will be easy to get rid of (despite what his former lawyer says) and he will probably end up spending the rest of his life in prison (unless he can post presidentially pardon himself).

The problem is not Donald, the problem is what he has done. He has made the USA into the laughing stock of the world. He has cozied up to dictators, while attacking his allies. He has made bestest buds with one of the world’s most dangerous men (Kim Jong of North Korea) while doing his best to damage his country’s relationship with Japan and South Korea. He has attacked all of his country’s key trading partners.

Trump leaves behind him a dangerous mess. The USA is by far the world’s best armed country. And people are laughing at it. Dictators are flourishing. The world’s democracies, under attack by The Donald, are not doing well. Whomever replaces Trump will be leading an angry, confused, and not very well attached group of States who have watched as their lifestyles and wealth have gone down the toilet, while the rest of the world does better than them.

My fear is the next president of the USA will be a “war president” and the USA will unleash its familiar “assault on everyone” military style, in order to set things back into its favour again.

That is really the problem we all face right now. Who will replace Trump and what will they do to “restore the world order” in the USA’s favour.

Doddering old dotards do not cause problems in situ. They cause future problems.

#61 Captain Uppa on 06.04.19 at 6:49 am

As I said about April, I am hearing about tons of sales activity for GTA RE in May and specifically the last couple weeks.

It will be interesting to see how much sales activity and where prices sit.

As for preferreds, I am a dumb dumb. I just stick to my 60/40 balanced portfolio. Set it and forget it, with smarter people than me re-balancing it of course.

#62 Ponzius Pilatus on 06.04.19 at 7:46 am

Erdogan is buying Russian rockets.
Says they are better than the Americans.
https://m.spiegel.de/politik/ausland/tuerkei-recep-tayyip-erdogan-besteht-auf-kauf-von-russlands-s-400-system-a-1270709.html

#63 jess on 06.04.19 at 8:01 am

https://www.icij.org/investigations/panama-papers/the-dummy-company-at-the-heart-of-deutsche-bank-money-laundering-probe/
For a few hundred dollars a year, dummy companies like Regula that are offered by banks, law firms and boutique offshore specialists worldwide can appear on the paperwork of an offshore company as a director or shareholder. A company’s real owner does not appear on public records.

The Dummy Company at the Heart of Deutsche Bank Money Laundering Probe

Leaked records involving a company at the center of a Deutsche Bank money laundering probe expose a global cadre of money makers.

The records concerning former Deutsche Bank subsidiary Regula Ltd. shine a light, too, on how one of the world’s largest banks helped shield the identities and machinations of the world’s rich and powerful.

German police and tax inspectors have raided the homes and offices of German citizens, bankers, accountants and tax advisers as part of a criminal investigation. Authorities allege that Regula helped more than 900 wealthy Germans evade taxes and hide money from government coffers.

This month’s raids come on the back of a November 2018 search of Deutsche Bank’s headquarters in Frankfurt.

Regula

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

Inside a Flashy Trump Project in Uruguay: Cash Shortages and Mismanagement

rinsing and lather rust ..bring cash!
Eric Trump said to reporters on the trip. “We have the best building anywhere in Punta del Este, anywhere in South America.”
But the long-delayed project has become a microcosm of the Trump Organization’s deep problems. gold touch or rust
https://www.nytimes.com/2019/06/02/business/trump-uruguay-punta-del-este.html

====
panama
The filing in Manhattan on Monday outlined for the first time the accusation of tax evasion.
https://www.nytimes.com/2019/06/03/business/trump-panama-hotel-tax-evasion.html

#64 Howard on 06.04.19 at 8:21 am

Australia kicked off the next rate-cutting party today.

Australia’s central bank cuts rates to record lows as growth sags

https://www.cnbc.com/2019/06/04/australias-central-bank-cuts-rates-to-1point25percent.html

#65 NoName on 06.04.19 at 8:29 am

#62 Ponzius Pilatus on 06.04.19 at 7:46 am
Erdogan is buying Russian rockets.
Says they are better than the Americans.
https://m.spiegel.de/politik/ausland/tuerkei-recep-tayyip-erdogan-besteht-auf-kauf-von-russlands-s-400-system-a-1270709.html

Not better just lot cheaper. 2 for 1 kind of deal but we all know difference between kfc 2 pcs meal and avocado toast.

Does word Lada rings any bells?

Way back on a late 70s or early 80s nato was $#!7l3$ scared because russians had a that tank that can shoot “automatic” its 110mm-something canon, even reserve were trained to operate and repair it on disassembled units or just on a parts that training covered, bery few peope actually did se and operated finished products. All that secresy sent nato and arms producers in to frenzy in upgradings its thanks, new iteration of lepards abrams leclerks and chlangers…

It was not until a colapse berlin war that ot was discovered that t72 was death trap. Funny est thing is that crew after shoting just one shell crew would almost sufericate because ventilation was not up to task, but after firing a canon as it was designed to fire it woud take a up to 15min to get all smoke out so crew can see what button to prees and operate.

Remember whats happened to arm ata last parade? Roomor is transmission died so it got towed away… Unit is so expensive to make that order were downsizeed and upgrade for what ever they have now its on going.

Same rhing with mig 25 or 31 that supersonic balistic missaile interceptor, using wacuum tube insted of electronic, that gave a birth to f15 and feew other “modern” airplanes. There is one advantage for vacuum tubes over electronic is much more resilient to emp…

My opinion dont account s for much but i would alway chose battle proven patriot over we know its probably working s400.

#66 PastThePeak on 06.04.19 at 8:46 am

#53 Russ on 06.03.19 at 11:53 pm

Direct action at home:
https://powerequipment.honda.ca/one-honda-one-tree

Who doesn’t wish to do the right thang?

When I saw this tree bit in our local Honda ICE flyer I immediately thought that I should get together with IHCTD9 and pitch this idea to Stihl and Husqvarna…

“for every chainsaw purchased between {insert dates} we will plant a tree in Canada.”

“for every *chainsaw* purchased”!
Get it?
Now that, is funny!
++++++++++++++++++++++++++++++++++

I use a chainsaw all the time to cut down dead trees, and those that have fallen into the road, lane, fields. It isn’t a weapon of mass live forest destruction.

#67 PastThePeak on 06.04.19 at 8:50 am

#22 Darren Lacque on 06.03.19 at 7:36 pm
Keep squeezing the lemon that has no more juice left. If you think 5% to 6% dividend yields today are normal and your not going to lose 10%, 15%, 20% down the road, good luck. Perfect example, HSBC is down around 16% in the last 12 months and has a current dividend yield of 6.24%.

I can sight many examples of this so good luck to you guys trying to squeeze out high yields.
+++++++++++++++++++++++++++++++++++

Being very cautious of high yielding common stock equities is good advice. However, preferred shares are a separate beast. Different risks, different benefits.

#68 dharma bum on 06.04.19 at 9:56 am

Meanwhile a senior Fed official said Monday he thinks the US central bank will have to cut rates later this year – a dramatic reversal of what was expected just six months ago. – Garth
——————————————————————–

The chickens have come home to roost.

#69 IHCTD9 on 06.04.19 at 9:58 am

#54 Sail Away on 06.04.19 at 12:42 am
A Chinese person paid $4.5M for lunch with Warren Buffett.
_____

I read a while back about a couple of Chinese businessmen who were suing a Chinese dating service that had failed to get them hooked up after like 7 years of trying. They wanted their money back. How much did they pay these dating services?

Over a million USD each.

7 figures paid to get a date lol! It must be a different world over there.

Some of them clearly have money to burn. I agree – they might as well burn it here.

#70 dharma bum on 06.04.19 at 10:02 am

Economics, the “dismal science” continues to confuse even the smartest investors!

https://www.cnbc.com/2019/05/03/buffett-no-textbook-predicted-the-strange-economy-we-have-today.html

Confounding. Unpredictable.

#71 IHCTD9 on 06.04.19 at 10:09 am

#53 Russ on 06.03.19 at 11:53 pm

When I saw this tree bit in our local Honda ICE flyer I immediately thought that I should get together with IHCTD9 and pitch this idea to Stihl and Husqvarna…

“for every chainsaw purchased between {insert dates} we will plant a tree in Canada.”

“for every *chainsaw* purchased”!
Get it?
Now that, is funny!
___

Believe it or not, my main chainsaw is a 14″ bar 40V cordless electric. So I guess I can mow down the forests with a clear conscience :).

I’m so green!

I do have an old mid 70’s Pioneer 1074 as a back up though if I ever feel the need to plant a few trees.

#72 dharma bum on 06.04.19 at 10:17 am

An apt “Blog Dog” analogy for the current state of economic affairs:

“There’s an excitable dog on a very long leash in New York City, darting randomly in every direction. The dog’s owner is walking from Columbus Circle, through Central Park, to the Metropolitan Museum. At any one moment, there is no predicting which way the pooch will lurch.”

“But in the long run, you know he’s heading northeast at an average speed of three miles per hour. What is astonishing is that almost all of the dog watchers, big and small, seem to have their eye on the dog, and not the owner.

”https://business.financialpost.com/investing/investing-pro/why-investors-shouldnt-let-the-trade-war-distract-them-from-the-big-picture

#73 Shawn Allen on 06.04.19 at 10:36 am

Fake Numbers?

#46 not 1st on 06.03.19 at 10:14 pm
Lets revisit the fake job report from April. You know the one that had 100,000 job created most in Canadian history and lowest UE rate. But then the GDP went down. Very curious.

Well now the PMI tells the story and its all bunk. Fake economy built on debt.

****************************
April jobs at 100,000 was no doubt exaggerated due to inherent uncertainty in how that data is collected. The household sample is never truly a random sample and even if it were there are standard statistical errors. I expect negative jobs in May as the error corrects. Nothing nefarious in this it’s just a hard number to measure.

Weird that you know GDP was down in April as the latest report was for March and Q1 and both were up slightly.

The Purchasing Managers Index? It had positives and negatives.

“The IHS Markit Canada Manufacturing PMI declined to 49.1 in May 2019 from 49.7 in the previous month and beating market expectations of 49.8. The latest reading pointed to the second consecutive contraction in factory activity and the steepest since December 2015, as output dropped at the sharpest pace since 2015 and new orders fell for the third straight month due to weak demand in both foreign and domestic markets. Additionally, supply chain performance deteriorated linked to shortage of raw material supply that led to longer delays. Meanwhile, the job creation rate rose marginally partially due to an expansion of factory space. On the price front, input cost inflation eased to an over four-year low. Looking ahead, optimism jumped to a 13-month high, despite the current slowdown in the sector driven by new products expectations, hiring plans and factory expansion. Manufacturing PMI in Canada is reported by Markit Economics.”

Fake economy built on debt? Maybe some truth to that mantra. But debt and credit are the true grease of the economy and have been for hundreds of years at least.

When any individual or company or government has too much debt then that can certainly lead to problems. But the capacity of to carry debt at low interest rates is far higher and warnings of doom have generally not come true. Maybe this time?

Every product and service and building ever created on this earth has been fully paid for by someone at the moment of its creation since the earth collectively owes nothing to other planets. The products and services and buildings and all are quite real.

#74 Keyboard Smasher on 06.04.19 at 10:39 am

Can you ask those Millennials how in the few years since they finished their undergrad + master’s level certificates they managed to save $400,000?

I think their strategies and tips on that alone would yield more interesting personal finance information for the readers than talking about preferreds again.

#75 PoorEngineer on 06.04.19 at 11:03 am

Off topic but interesting:

“After going after tax evaders in the overheated real-estate markets of British Columbia and Ontario, Canada Revenue Agency have identified more than $1 billion in unpaid taxes.”

Looks like CRA is coming to collect. Hope you paid your taxes.

https://www.thestar.com/vancouver/2019/05/30/cra-adds-1-billion-to-government-coffers-going-after-real-estate-tax-cheats.html

#76 Remembrancer on 06.04.19 at 11:42 am

#69 IHCTD9 on 06.04.19 at 9:58 am

People with too much disposable income are not restricted to a particular country or genetics – the trick is to come up with ways for them to happily separate themselves from some of it for your profit…

#77 IHCTD9 on 06.04.19 at 11:59 am

#74 Keyboard Smasher on 06.04.19 at 10:39 am

Can you ask those Millennials how in the few years since they finished their undergrad + master’s level certificates they managed to save $400,000?

I think their strategies and tips on that alone would yield more interesting personal finance information for the readers than talking about preferreds again.
___

It doesn’t say they saved 400K. You could just as easily re-write their letter as follows:

“… As a result, my wife and I – both 37 years old– have ~$300k in combined pensions, 50K in RRSPss, and 50K TFSAs along with big debt for multiple masters degrees/professional certifications. Appreciate all the advice you’ve provided on this blog. (Enough of an obligatory suck up?)”

^ That’s a lot easier to believe no?

The devil is in the details, which were not given.

#78 JB on 06.04.19 at 12:27 pm

#23 jess on 06.03.19 at 7:38 pm

say what? a toll to walk through your lobby to your condo

https://www.msn.com/en-ca/news/canada/paying-the-toll-hamiltons-royal-connaught-condo-owners-must-pay-fee-to-go-through-the-lobby/ar-AACkRka?li=AAggNb9
………………………………………………………………………
Hilarious, didn’t you read the fine print! You sign a condo deal and there is all kinds of little secret dos and don’ts that will rattle your freedom. Ha suckers buy a condo! Wait until you learn about the secret noise police that will make your life unlivable until you complain about the elevators noise, or the next door baby crying at 3 AM or your neighbours throwing a rav.

#79 IHCTD9 on 06.04.19 at 12:53 pm

#76 Remembrancer on 06.04.19 at 11:42 am
#69 IHCTD9 on 06.04.19 at 9:58 am

People with too much disposable income are not restricted to a particular country or genetics – the trick is to come up with ways for them to happily separate themselves from some of it for your profit…
___

Indeed. First thing that pops into my head is who in the West would ever guess that a Chinese guy would spend a million trying to get a date?

Then comes: Would Chinese Canadians separate themselves from a million of their dollars to get a date?

I could get in on the ground floor with this!

(wheels turning…)

#80 PastThePeak on 06.04.19 at 12:55 pm

#64 Howard on 06.04.19 at 8:21 am
Australia kicked off the next rate-cutting party today.

Australia’s central bank cuts rates to record lows as growth sags

https://www.cnbc.com/2019/06/04/australias-central-bank-cuts-rates-to-1point25percent.html
++++++++++++++++++++++++++++++++++

The US markets are roaring ahead partially on dovish talk from Fed that most are taking to mean a rate cut is coming in the not-too-distant-future. Let the party get back on!!!

Now, if only the talking heads would look at how things usually go when there is a central bank tightening, a plateau, and then cuts (recession usually follows as the cuts can’t prevent the downturn that was already in motion).

Tariffs, trade wars, DoJ attack on US largest companies, growth issues in every major economy, and of course exploding debt. What could go wrong?

#81 Howard on 06.04.19 at 1:07 pm

Vancouver May RE cartel stats for May are out. Nothing surprising, the decline continues at a decent pace (but far from crash-worthy).

https://www.rebgv.org/market-watch/monthly-market-report/may-2019.html

#82 Sail away on 06.04.19 at 2:34 pm

#76 Remembrancer on 06.04.19 at 11:42 am
#69 IHCTD9 on 06.04.19 at 9:58 am

People with too much disposable income are not restricted to a particular country or genetics – the trick is to come up with ways for them to happily separate themselves from some of it for your profit…

——————————————

Let’s see instead if we can come up with ways to send them and their money elsewhere… hmmm… if only there were a way…

How about starting with foreign buyers tax, empty homes tax, luxury car tax? And for good measure, let’s blame them for all of our problems. That should help.

#83 Ace Goodheart on 06.05.19 at 7:03 am

RE: #78 JB:

“Hilarious, didn’t you read the fine print! You sign a condo deal and there is all kinds of little secret dos and don’ts that will rattle your freedom. Ha suckers buy a condo! Wait until you learn about the secret noise police that will make your life unlivable until you complain about the elevators noise, or the next door baby crying at 3 AM or your neighbours throwing a rav.”

Or the fire alarms.

They are the worst. They go off at any time. Often in the middle of the night. Everyone has to leave. So you’re standing in your jammy jams on the pavement, in front of a building that clearly is not burning down, in the middle of the night in January, waiting for the fire department to go through room by room and declare that it was yet another false alarm.

Yay condos.

I’m keeping my house….

#84 acdel on 06.05.19 at 7:58 pm

#53 Russ

Ok, I laughed; enginuity at its best.

But overall the carbon tax only fuels (pardon the pun) the well off; the average person is a shrew. Planting a tree makes more a difference then paying carbon tax.