Just right

Not too hot. Not too cold. And don’t expect a rate cut anytime soon.

The latest inflation numbers, out Wednesday, show the Bank of Canada might actually know what it’s doing. As you recall, the central bankers decided last week not to cut rates, even as Trump beats his monetary guys into submission (a rate drop is still expected there in a few days). The official Ottawa stats confirm it’s different up here.

You may not believe it, but the cost of living increase is down to 2%. Yeah, I know everything you buy is way higher than last year, but that’s the spin. And it’s down considerably from 2.4% in the previous month.

Two per cent is right in the central bank’s target range. Below that (1%) and they worry the economy is languishing and needs some stimulus (I know the feeling). So they cut. Higher than this (3%) and they fret things are overheating and in need of a cold shower. Rates go up. Along the way financial markets react because the cost of money influences much. Stimulus means more economic activity, corporate profits and rising stocks, for example. And higher rates bolster the dollar, since money flows to where it can earn a better return.

Trump wants cheap money to gas stocks, fuel growth and win him another term. So, weirdly, a country with equities at record levels, full employment and robust GDP, is about to see interest rates reduced, partly because of White House pressure. But in Canada, no such luck. With central bankers in many countries about to ease rates as expansion slows, our guys are expected to stand pat.

So if you’ve been waiting for lower mortgage rates, stop. Our advice stands. When five-year terms are available from the banks at 2.8% and short loans are out there for close to 2%, take the money and run.

$     $     $

It’s relatively easy to hate people posting on this blog from Toronto. Even moreso from Vancouver. You know the drill: the GTA has all the jobs. YCR has all the beauty. The rest of us are dog poo.

The latest housing news must have come as a shock to them, since both markets have shuffled to the bottom of the pack. Sales in Van have collapsed and prices are swooning. The market in Toronto is flat, boring, pedantic and expensive. Meanwhile people in other cities – where the destructive forces of speculation never really hit – seem to be happily buying and selling at a healthy clip.

CREA’s stats tell and interesting story when it comes to the ratio of houses selling to the number listed for sale. The strongest markets are now Ottawa, Montreal and Halifax. Among the very weakest are – you guessed it – the Big Smoke and that silly city which taxes people for having second homes. Moreover, when it comes to renting, Toronto is the worst market in Canada.

Why would anyone stay there? Oh, right. The rest of us are all unemployed.

$     $     $

Bandit growled at me when I hauled him off licking another dog’s tasty vomit this morning, then Dorothy huffed at breakfast, saying I spend too much time on some stupid blog. So now I’m fragile. Need a suck-up. Fortunately, here’s Denis…

He and his wife emigrated to Canada six years ago (from the UK), immediately fell victim to some bad Canadian habits and got house-horny. This is their tale.

After living for three years on student income and in a tiny studio apartment in UK, we finally had full-time jobs and for the first couple of years, we wanted to live the ownership dream. We bought a new SUV and eventually a townhouse in Coquitlam. Even though we could afford to make the payments, pay back the student loans, and had a bit of money left at the end of the month, we slowly realized that we weren’t any happier than we were during our student years…

At around that time, a colleague introduced me to your blog. I read it since then and I give you a large credit in our decision to sell the townhouse in 2017. We cashed out a couple of months after the market hit its peak here in Metro Vancouver. It almost felt like a last moment sale. We only had one reasonable offer and it was at exactly the asking price. The days of multiple offers above asking were over…

Since then our portfolio has surpassed the half million mark. We rent – almost two years now. With one three-year-old kid and another one coming. We do not worry about our finances anymore. And the thought about the upcoming maternal leave or the child expenses don’t bother us. We got the financial buffer to go through at least some of the surprises that life can bring.

As cliché as it might sound, money doesn’t buy you happiness, but it bought us the ability to take time off work, time to enjoy life…

My intent in sharing this is not to pet myself on the shoulder but to say that, despite all the complaints in the comment section, Canada is a country of a great opportunities, even for those of us in our early thirties. As long as you are willing to stop whining and feeling entitled. As long as you are willing to live within your means. Care less about what your family, friends or neighbor think about your house, car or stuff. And if you are living in a city, be willing to give up on the outdated dream of owning a detached house. Not owning one will not make you any less happy in life. In fact, it made us much happier when we get rid of ours… Thank you for the great work that you do on this blog!

Ahhh, much better. Apparently there are actual people who read this pathetic blog and don’t just want to fight over the Internet. How refreshing. And, yes, the notion of owning a detached home in a major urban area within biking/walking distance of a meaningful job without gutting your finances or becoming a debt slave during an entire adulthood is… gone.

There’s absolutely no shame in renting. For disciplined people who invest instead of feeding a piece of real estate, this can mean freedom, liquidity, flexibility and the ability to properly look after your family.

By the way, Charlie – the soon-to-be-evicted dude we profiled here yesterday – sends this note: “Just wanted to send you a quick note to say thanks for addressing my inquiry on your blog. I really do appreciate the advice and input you offered on our situation. We were definitely a bit panicked when we found out we were being evicted, and I think our emotions pushed us to consider buying. But, we’ve caught our breath, and have seen some pretty good rental properties. We’ll have to pay a bit more than we currently are, but that’s not the end of the world. It’s all good now.”

Me too.

147 comments ↓

#1 BlogDog123 on 07.17.19 at 4:21 pm

When I was single, early thirties, renting seemed the right choice until I found a mate. No shame in renting, with the flexibility of moving for work.

I know people who commute 90 minutes each way, ideal traffic conditions. They’re house-stuck. Not for me.

#2 slam on 07.17.19 at 4:28 pm

“then Dorothy huffed at breakfast, saying I spend too much time on some stupid blog”

Maybe if she can write an article, give advice, have it posted, and get responses (and no responses) from all over the place, she’ll understand this blog helps a lot of people. Not sure for everyone else, but I look forward to learning from the blog everyday :)

I don’t think I have found a better blog yet… please recommend any if you know :)

#3 Andrewski on 07.17.19 at 4:32 pm

Way to go Denis. By heeding Garth’s (free!) advice, you have less stress in your life & that’s a great thing! Time as a form of currency is greatly under appreciated.

#4 Ronaldo on 07.17.19 at 5:18 pm

Bandit growled at me when I hauled him off licking another dog’s tasty vomit this morning, then Dorothy huffed at breakfast, saying I spend too much time on some stupid blog.
——————————————————————-
That’s what my wife tells me too.

#5 Penny Henny on 07.17.19 at 5:20 pm

Hey TCC.
What are your thoughts on XEG?
I’m thinking it is so beat up because there is worry that Trudeau might win the next election.
Is it time to get in?

#6 Penny Henny on 07.17.19 at 5:25 pm

Bandit growled at me when I hauled him off licking another dog’s tasty vomit this morning, then Dorothy huffed at breakfast, saying I spend too much time on some stupid blog.-Garth
///////////////

What’s the name of the blog, is it better than this one?

#7 Hello Fellow Miscreants on 07.17.19 at 5:25 pm

What happened to the predictions of rising rates?

US rates increased nine times. As predicted. – Garth

#8 Yukon Elvis on 07.17.19 at 5:27 pm

You may not believe it, but the cost of living increase is down to 2%. Yeah, I know everything you buy is way higher than last year, but that’s the spin.
…………………..

Never thought you would admit that the inflation number is bs. Took you long enough but well done anyhow.

#9 DON on 07.17.19 at 5:37 pm

Charlie and spouse just needed time to reflect before acting. More people should do that before acting.

Garth you should take weekends off the blog…especially in the summer. You have helped so many over the years.

#10 Leo Trollstoy on 07.17.19 at 5:38 pm

#4 Ronaldo on 07.17.19 at 5:18 pm
That’s what my wife tells me too.

Stop licking your dogs tasty vomit

#11 Yanniel on 07.17.19 at 5:43 pm

Canada is a blessing. It is full of opportunities.

Meet Daren: a Millennial from Alberta. Just as Eli, his moving abroad. [1]

Daren is a DIY investor. He posts updates about his net worth every month. [2]

He is not afraid to embrace leverage [3]; but he is very careful about managing risk. A twenty something that motivates me by his drive and discipline.

I am humbled when I see cases like this, and I feel invigorated.

Thanks, Canada, for the chance.

[1] http://therichmoose.com/post20190614/
[2] http://therichmoose.com/networth201906/
[3] http://therichmoose.com/post20180119/

PS: not affiliated with him in any way. I do raid his comments section though.

#12 DON on 07.17.19 at 5:45 pm

@#4 Ronaldo

My wife used to say the same thing…until I told her I was learning how to properly inform our children of financial and General life matters. Lol

She reads the blog occasionally and comments but I don’t know her handle so I tread lightly.

#13 NoName on 07.17.19 at 5:49 pm

#5 Penny Henny on 07.17.19 at 5:20 pm
Hey TCC.
What are your thoughts on XEG?
I’m thinking it is so beat up because there is worry that Trudeau might win the next election.
Is it time to get in?

What I am seeing on twitterwerse more now days is a chateter about gold miners and breakout of some kind, good for tax I guess…

#14 NoName on 07.17.19 at 5:50 pm

good for tsx I guess…

#15 Vision on 07.17.19 at 5:51 pm

Denis has incredible insight as to what is important in life, having lived through home ownership.( You too , Garth for all your good advice.)
Koodos to you both!

#16 Penny Henny on 07.17.19 at 5:57 pm

#13 NoName on 07.17.19 at 5:49 pm
#5 Penny Henny on 07.17.19 at 5:20 pm
Hey TCC.
What are your thoughts on XEG?
I’m thinking it is so beat up because there is worry that Trudeau might win the next election.
Is it time to get in?

What I am seeing on twitterwerse more now days is a chateter about gold miners and breakout of some kind, good for tax I guess…
//////////////

‘chatetar’ = chatter?

I went 10% gold April 22.

But XEG is so beat up it’s looking good

#17 Ponzius Pilatus on 07.17.19 at 6:17 pm

Berny Arnault, a French man who peddles luxury goods has displaced Gates as the world’s second richest man.
Bozo, who stole the mail delivery idea from Sears is still way out in front.
Together, they are worth almost 400 billion.
All three made their fotunes by either buying out the competion and/or by stealing other’s ideas.
And they are being hailed as innovators and financial geniuses.

#18 crowdedelevatorfartz on 07.17.19 at 6:17 pm

@#12 DON
“She reads the blog occasionally and comments but I don’t know her handle so I tread lightly.

*****
I’m thinkin
“She who must be obeyed” ?

#19 Westcdn on 07.17.19 at 6:25 pm

My mother was independent. When she divorced from my father, it was a tough choice. Being the oldest, I managed the house while she worked. My sister was tough to deal with but she was a good worker – it helped that my mother would lay into her. I learned to cook as my mother was at work and was home from school. It started with pasta and then I got very good – I also got frugal buying groceries. There were a lot of tough times – I remember most how some people will step on your face if they think can get away with it – I have a long memory.

My mother brought home men I did not like except for Roy. He was a Brit and he could make me laugh. He did not stay around for long then enter my cousin, Elden. He was a lady killer. For some reason he liked me and taught me tricks which I do not use. Anyway, I have fond memories of my parents – they tried and I love them for that.

#20 Linda on 07.17.19 at 6:30 pm

About that dream of home ownership – one day the current owners will sell or those who inherit might. Point is, we do not live forever so eventually all those expensive, close to work type digs should have a change in ownership. Question is whether prices will still be out of reach for all but the financially well endowed. Time will tell.

#21 Sail away on 07.17.19 at 6:31 pm

Trudeau says about Trump’s latest tweets, “It’s not how we do things in Canada…”

Of course, US Congresswoman Ilhan Omar would be prohibited by law from teaching in Quebec while wearing her hijab, because it seems that’s how we do things in Canada.

T2 really didn’t need to say anything.

#22 S.Bby on 07.17.19 at 6:32 pm

So it seems the FED isn’t so independent of political interference after all …

#23 Sail away on 07.17.19 at 6:41 pm

A word to the wise regarding XEG: a beaten up stock (or handful of stocks) can continue to go down, down… gone…

Especially in oil and gas where constant investment and exploration is needed, and foreign investment has fled the country. A lot of the companies are going bankrupt, divesting assets, or barely hanging on.

If you want oil and gas, far better bets in my opinion are Suncor, preferred shares from TransAlta, and maybe preferred shares in Altagas, both of which are yielding 7% plus with some protection. Buffett has a stake in Suncor.

#24 Reximus on 07.17.19 at 6:42 pm

Toronto is a weak market? not sure about that chief…2.2 months inventory is never considered a slow market especially in july

#25 Ponzius Pilatus on 07.17.19 at 6:43 pm

This is a story about renting vs. buying, from the perspective of two Austrians.
The first one is Gaston Glock who in the 60ths decided not to use his savings for the purchase of an  apartment, but rather use it to design and built what would become the famous Glock gun.
He’s worth 2 billion Euros now.

The other is Ponzius Pilatus who immigrated to Canada in the 70ths and quickly succumbed to house horniness.
He wanted to fit in. And houses were cheap.
Needless to say, he’s nowhere near a billion.

#26 TurnerNation on 07.17.19 at 6:54 pm

The world works this way: For almost 20 years last we were given daily bombardment on our screens, with
t-t-terrorism fears. Hollywood-grade productions with orange jump suits. And ever shifting and even
re-branded enemy: Al-Q. IS, ISIL. Where’d they all go? We had to go over there and get them else they’d have gotten us!!
6pm news featuring stock footage of black clad marchers in the desert. So scary!

Now…polls no longer record that fear. Now the #1 fear is an EXTINCTION LEVEL fear. You know the daily smear.
Net result will be higher taxes and more restrictions on travel and flying (just like last time).
The noose tightens.

From Cold War to Old War to Bold War, The battle, as always, is for your mind.

#27 Long-Time Lurker on 07.17.19 at 7:05 pm

#90 Julian on 07.16.19 at 8:25 am
Garth said, “Why would the central bank throw gas on this conflagration?”. I’m not sure the question was really answered but I certainly wonder about the rationale for cutting rates in the USA and Canada when both countries evidently have historically low unemployment and other robust economic numbers. Can someone help me understand? Even if one makes the argument that inflation is low and thus there is room to cut, would the Central banks not be concerned about the potential for substantial spikes in inflation if they throw fuel on the fire.

>Look outside of the U.S. for a possible explanation. Other countries aren’t doing so well. There’s more to this story but you have to search for it.

I just came across this. Inuit elders say that the Earth has shifted on it’s axis as the Sun and stars no longer match up with their previous locations. Akashic Record would probably find this interesting. So are you climate changers going to blame carbon dioxide emissions for this? The CBC is insinuating it but the elders say the Sun is higher in the sky.

Eskimos observation of daily earth wobble on news (CBC story)
https://www.youtube.com/watch?v=M4gyBOuqZoQ

Inuit People on the daily earth wobble, sun moon and stars out of place
https://www.youtube.com/watch?v=RNhK67GftDk

#28 IHCTD9 on 07.17.19 at 7:10 pm

#122 Hogtown Harry on 07.17.19 at 6:08 pm
#117 IHCTD9 on 07.17.19 at 4:12 pm

“Guess what the average sale price of an SFD in Brampton is?Look it up. Is every RE professional in Brampton selling houses way under market value?”

You mathematical ineptness is really showing. According to a quick google search from the Brampton Real Estate Board the average house price in Brampton is $740,000

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

Average cowboy, average. Do you understand that includes semis and townhomes of which there are many in Brampton. Recently built, large single family homes going for 700K would be a steal. They are not being sold for that price. Here is what large, newer builds are going for in Brampton…

https://www.realtor.ca/real-estate/20931001/5-3-bedroom-single-family-house-36-cedarsprings-way-brampton-sandringham-wellington?

It is you that is on another planet when it comes to pricing in the GTA
———

C’mon hogster, I plainly said SFD’s, not towns, not semis, just Single Family Detatched. It’s actually a stat you can look up, the number is 749k.

No stealing going on here at all, just regular same old market value being paid – as per usual.

Sorry, Hogster. If you’d like to keep pretending that houses in one of the hottest markets in Canada are going for way below what folks would actually ante up for them, go ahead and fill your boots – I’m not listening.

#29 Tony on 07.17.19 at 7:11 pm

Re: #7 Hello Fellow Miscreants on 07.17.19 at 5:25 pm

Trump’s spiel saying we’re going to normalize rates the day after the November 2016 election never materialized.

#30 Leichendiener on 07.17.19 at 7:14 pm

Beautiful, “licking another dog’s tasty vomit this morning” and I’ve been there. Listening to others’ good luck stories or tales of ‘tasty vomit’.

#31 Sandra Milagros on 07.17.19 at 7:18 pm

A 1.75% Bank of Canada rate and 2.65% to 3.0% GIC rates is just right but stocks inflated and real estate is just right too. I have never seen such a rigged, manipulated, fake economy and financial markets in my lifetime looking at this stuff which is 24 years now.

It is all a bunch of B.S. and Bitcoin and electronic money will be paradise for scammers and governments, banks etc. They are laughing at us and making us look like fools. All the youngsters now are on drugs and brainwashed by socialism and UBI. This will all end badly for us, the little sheep.

#32 Sebee on 07.17.19 at 7:19 pm

Garth, I thought the most disgusting thing is holding a pile of warm dog $#!+ in your hand after it poops and you scoop. But you’ve just topped it. I don’t know…I think I’d put him in quarantine for a week after he licked up puke. I bet it was human too. Brrrrr. Yuk.

I’m sensitive.

#33 crowdedelevatorfartz on 07.17.19 at 7:29 pm

@#25 Perturbed Piles
“Needless to say, he’s nowhere near a billion…”

*****

Now now now Ponzie.
Dont be putting yourself down!
We’ll have none of that!
Move to that socialist paradise Zimbabwe and convert all your money to Zimbabwe currency.
You’ll be a Trillionaire many many many times over.

https://www.wsj.com/video/zimbabwes-100-trillion-dollar-note-gains-in-value/E32B371E-2016-4BAC-9FDA-5CBE5DB7FE7C.html

P.S.
How many people have been killed by Glocks?
1000?
10000?
100000?

#34 crowdedelevatorfartz on 07.17.19 at 7:32 pm

@#27 Long Lurker
“the daily earth wobble, sun moon and stars out of place…”
++++

Nothing to worry about.
Usually happens when I drink too much.

#35 IHCTD9 on 07.17.19 at 7:39 pm

#120 JonBoy on 07.17.19 at 4:29 pm

Choices, friend. We choose to be typical. We are not forced to be typical.

Stop looking at what I am and what I have and look at the path and progression and you’ll see that I was perfectly “typical” in terms of income for a lot longer than I was a 2%er.
——

I think I have mistakenly given you credit for knowing a few things about me from my fairly regular postings here.

I’ll give you a quick rundown: Household income is 125K or so. Own a house free and clear. On track for a 7 figure portfolio by 65. Drive a 16 year old truck. Just shingled my own roof, just rebuilt the tandem axle trailer I welded up myself 15 years ago. I change out doors and windows. I change out starters and alternators. I put an addition on our house bottom to top singlehandedly less digging the hole. I live in small town Ontario where our house cost 2x income. I went into overdraft almost every month for 2 years early on so our portfolio could get fed. I have sent both my kids to a private school since jk. Total Charitable donations last year were 20k.

In short, I am far from typical, and I know the path you travel on very well. It sounds like we are very similar IMHO.

Yes you got richer as you got older, so did I. All I am saying is MANY do not get the good fortune we have received. 6 figure household incomes are rare, let alone individual ones. No matter what you or I have managed to achieve, there is no question that it takes a certain amount of cash flow to do my list of 4 things. If you had never got past 60k, your situation now would be vastly different. If Ms. IHCTD9 never worked, our situation would also be much different.

We both should consider ourselves fortunate, most will never have 6 figure household incomes – and that is a fact. It takes at least that much to do what we have done. Two incomes make all the difference in the world for regular folks.

#36 Timmy on 07.17.19 at 7:47 pm

Vancouver has far from collapsed, you still can’t get a 2 bdrm condo for under 800K…lomng way to go

#37 Dale Jeffords on 07.17.19 at 7:50 pm

Saving is out and debt is in. Canadians are so screwed. How are you enjoying your $24,000 a year in income tax free child tax benefits but your rent and daycare is $36,000 a year. Borrow $300 and pay $20 interest every 2 weeks Pay Day Hell. Look at you now Canada.

#38 NoName on 07.17.19 at 7:51 pm

#27 Long-Time Lurker on 07.17.19 at 7:05 pm

Didn’t that giant dam slowed the earth’s rotation and changed a wobble, when it was completed few yrs back. I wish, I have that good eye sight as those elders…

#39 tccontrarian on 07.17.19 at 7:57 pm

#5 Penny Henny on 07.17.19 at 5:20 pm

Hey TCC.
What are your thoughts on XEG?
I’m thinking it is so beat up because there is worry that Trudeau might win the next election.
Is it time to get in?

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

TCC has been quietly ‘banned’ – so, I doubt this will make it out in cyberworld of GreaterFools.

But, just in case I’m let out of the doghouse for a whif of fresh air, ‘yes’ I’ve buying up several energy stocks. Large/mid-cap mostly. Could go lower, but I’m OK with that.

TCC

#40 Captain Uppa on 07.17.19 at 8:09 pm

“You know the drill: the GTA has all the jobs. YCR has all the beauty. The rest of us are dog poo.”

With all due respect, I feel like that type of irrational hatred is far more directed towards the GTA from outside the country, as opposed to from the GTA to the rest of the country.

And it’s not close.

#41 Captain Uppa on 07.17.19 at 8:11 pm

Correction: “…from elsewhere around the country”, not outside the country.

#42 IHCTD9 on 07.17.19 at 8:30 pm

9 Westcdn on 07.17.19 at 6:25 pm

My mother brought home men I did not like except for Roy. He was a Brit and he could make me laugh
——

Those Brits are good for that. I worked with one, and he taught me words like kife, minge, bellend, bollocks, crike, and many more UKisms that are probably best left aside in polite company…

Ps, I had to go back and un-auto-correct every single one of those words except for bollocks. I have to assume this means they are all quite vulgar. They are likely still misspelt.

Pps, in the spirit of new English words, the use of “misspelt” was intentional.

Ppps, do Hindi guys laugh when they see a truck driving along with a “Lund” fishing boat in tow?

#43 IHCTD9 on 07.17.19 at 8:37 pm

#21 Sail away on 07.17.19 at 6:31 pm

T2 really didn’t need to say anything
——-

We need to somehow Ram this suggestion home for Justin.

#44 SoggyShorts on 07.17.19 at 8:54 pm

#35 IHCTD9 on 07.17.19 at 7:39 pm

But still, choices are a huge factor, if not the factor for the 6 figures.
E.G. My BiL doesn’t want to take over my company when I retire in 1-3 years because he doesn’t want to move from Calgary to Edmonton. He’s making 40K, I’d pay him 80K to start.
I’ve had 2 other employees that I tried to groom for management in the last 7 years who didn’t want it, one decided to be a stay at home mom, and the other was happier in a lower stress position. I’m not talking middle management crap either, I mean CEO, my job, running the whole damn thing.
When I finally pull the trigger I’m going to end up simply dissolving a nicely profitable company because I can’t find anyone willing to work a little overtime in the summers (we basically close for winter)

#45 akashic record on 07.17.19 at 8:57 pm

#27 Long-Time Lurker

I just came across this. Inuit elders say that the Earth has shifted on it’s axis as the Sun and stars no longer match up with their previous locations. Akashic Record would probably find this interesting. So are you climate changers going to blame carbon dioxide emissions for this? The CBC is insinuating it but the elders say the Sun is higher in the sky.

Eskimos observation of daily earth wobble on news (CBC story)
https://www.youtube.com/watch?v=M4gyBOuqZoQ

Inuit People on the daily earth wobble, sun moon and stars out of place
https://www.youtube.com/watch?v=RNhK67GftDk

Thank you, very interesting, indeed.
These people live as part of nature, in a way that we can’t even comprehend.

The Hopi mythology, for example, describes 3 near extinction level cataclysm, one of them fits the case of pole shifting.

An ethnologist was frustrated that Hopi ceremonialism was so abstract that it would take longer than a man’s lifetime to understand it, and that it required the sixth sense of the Hopis themselves.

Climate change may relate to Great Year.

“The precession is a slow westward shift of the equinoxes along the plane of the ecliptic, resulting from the precession of the earth’s axis of rotation, causing the equinoxes to occur earlier each sidereal year. The precession of the equinoxes occurs at a rate of 50.27 of an arc a year, with a complete precession requiring 25,800 years. This precession is caused by the gravity of the Sun and Moon acting on the Earth’s equatorial bulge, creating a wobbling in the orientation of the axis of the Earth at cycles of approximately 25,627 years. This cycle is called a Great Year.”

https://www.ancient-origins.net/history-ancient-traditions/sacred-calendars-and-new-years-cycles-time-and-ages-005248

#46 IHCTD9 on 07.17.19 at 9:16 pm

#25 Ponzius Pilatus on 07.17.19 at 6:43 pm

Needless to say, he’s nowhere near a billion
——-

Join the club…

#47 IHCTD9 on 07.17.19 at 9:21 pm

#40 Captain Uppa on 07.17.19 at 8:09 pm
“You know the drill: the GTA has all the jobs. YCR has all the beauty. The rest of us are dog poo.”

With all due respect, I feel like that type of irrational hatred is far more directed towards the GTA from outside the country, as opposed to from the GTA to the rest of the country.

And it’s not close
——

You’re saying folks from outside of Canada think the GTA sucks too?

#48 rknusa on 07.17.19 at 9:27 pm

re: The strongest markets are now Ottawa, Montreal and Halifax.

I believe the strongest markets are London and Windsor both with double digit YOY price appreciation

The metric was demand, not price. – Garth

#49 Shawn Allen on 07.17.19 at 9:39 pm

Bank of Canada buys bonds?

#70 expat on 07.17.19 at 7:18 am
Bank of Canada is buying back 500 million in bonds. No details just an announcement in the media.

Hmm

***************************
I don’t see the announcement on Bank of Canada web site.

If true I would ponder why and what impact it might have. If Bank of Canada purchases government bonds from banks (who do tend to hold some as a diversification or a alternative to additional loans) then the banks have excess cash on the balance sheet. Would the banks then simply sit on it collecting I believe 1.75% from Bank of Canada? Or would they increase their loans? But is there demand for increased loans and if so what stopped that demand being filled by the banks? Were the banks short on cash? (and yes, even without an official cash reserve requirement, each bank had its own guidelines for minimum cash levels on the balance sheet) If they sat on the cash received for the bonds at Bank of Canada then the money supply in Canada as in the spending power in consumer and business accounts is unchanged.

Would the Bank of Canada do this to push bond interest rates down or more an attempt to encourage banks to make loans rather than buy bonds?

#50 IHCTD9 on 07.17.19 at 9:42 pm

#44 SoggyShorts on 07.17.19 at 8:54 pm
#35 IHCTD9 on 07.17.19 at 7:39 pm

But still, choices are a huge factor, if not the factor for the 6 figures.
E.G. My BiL doesn’t want to take over my company when I retire in 1-3 years because he doesn’t want to move from Calgary to Edmonton. He’s making 40K, I’d pay him 80K to start.
I’ve had 2 other employees that I tried to groom for management in the last 7 years who didn’t want it, one decided to be a stay at home mom, and the other was happier in a lower stress position. I’m not talking middle management crap either, I mean CEO, my job, running the whole damn thing.
When I finally pull the trigger I’m going to end up simply dissolving a nicely profitable company because I can’t find anyone willing to work a little overtime in the summers (we basically close for winter

Maybe. If everyone made the right choices, not everyone one would make 100k. We have PhD cabbies in the gta, and we have high school dropout millionaires out here in the boonies. With what you describe above, sure. You are offering a gift, I guess your lucky targets must be pretty happy with where they’re at.

Funny you mention this though. I’ve noticed this same thing happening a lot. Perfectly good companies being liquidated because no one wanted them. The guy I work for will be in the same boat, all his kids are not interested in running a business (a good one too). This place would afford someone the lifestyle of a king out here where a waterfront crib on 35 acres is a paltry 1 million. The boss has a great life, but it comes with the responsibilities and liabilities of running a company. It looks like everyone just wants to earn a salary and then go home at the end of the day.

#51 Sydneysider on 07.17.19 at 9:46 pm

Denis has the good sense to rent, but I question the wisdom of driving a “climate changer”, given the modest size of his family.

#52 MF on 07.17.19 at 10:10 pm

#50 IHCTD9 on 07.17.19 at 9:42 pm

“You’re saying folks from outside of Canada think the GTA sucks too?”

-Absolutely not. I work with the public and I deal with tons of new Canadians. All are drawn to Toronto. If not when they arrive then eventually. It’s only other Canadians that suffer from TDS (Toronto Derangement Syndrome).

MF

#53 Ace Goodheart on 07.17.19 at 10:14 pm

USA’s into uncharted territory.

Days like this make me feel very glad to be Canadian.

Trump is rallying based on racism. He’s out in the open about it now and has a clear base that supports him. No longer in hiding or denial.

Scheer has chosen his tack. Main sail is set to. Expect commercials in the next few weeks. I am not sure that he has it right. But politics is all about smoke and mirrors and there is a lot of that.

#54 IHCTD9 on 07.17.19 at 10:20 pm

#52 MF on 07.17.19 at 10:10 pm
#50 IHCTD9 on 07.17.19 at 9:42 pm

“You’re saying folks from outside of Canada think the GTA sucks too?”

-Absolutely not. I work with the public and I deal with tons of new Canadians. All are drawn to Toronto. If not when they arrive then eventually. It’s only other Canadians that suffer from TDS (Toronto Derangement Syndrome).

MF
———-

Go back and read (carefully) what Uppa wrote. :)

#55 Sail Away on 07.17.19 at 10:30 pm

#43 IHCTD9 on 07.17.19 at 8:37 pm
#21 Sail away on 07.17.19 at 6:31 pm

T2 really didn’t need to say anything
——-

We need to somehow Ram this suggestion home for Justin.

———————-

Agreed, but damn he’s photogenic! That counts for a lot with today’s voters. I’d say election chances of his removal are 50/50 at best.

#56 Hogtown Harry on 07.17.19 at 11:00 pm

#28 IHCTD9 on 07.17.19 at 7:10 pm

“Sorry, Hogster. If you’d like to keep pretending that houses in one of the hottest markets in Canada are going for way below what folks would actually ante up for them, go ahead and fill your boots – I’m not listening.”

You are correct in that you are not listening. You seem to forget that this dialogue started with your comment that you couldn’t understand why anyone would pay $700k for new detached homes in Brampton that some blog dog said were being sold in early 2019. I am telling you that that would be a steal. Try and find a new detached home for $700k in Brampton and post it to prove me wrong. Your comment, “why would anyone pay 700k for a house in Brampton” is assinine. Brampton is part of the GTA . 700k doesn’t buy you a tear down in many parts of Toronto. 60 year old bungalow tear downs in south Etobicoke are over a million. Port Credit tear downs are also over a million…. You haven’t a clue on prices in the GTA.

#57 Doug in London on 07.17.19 at 11:02 pm

Cost of living increase down to 2%? The problem with the inflation calculation is it conveniently excludes housing costs, which is odd because it’s a sizeable part of most people’s living costs. It might actually make sense if you live in an economically depressed area where housing is dirt cheap, but not for where most people live.

#58 Hogtown Harry on 07.17.19 at 11:07 pm

#50 IHCTD9 on 07.17.19 at 9:42 pm

“Maybe. If everyone made the right choices, not everyone one would make 100k. We have PhD cabbies in the gta, and we have high school dropout millionaires out here in the boonies.”

Your broad sweeping generalizations are a gas. Yep, Toronto is filled with PhDs driving cabs and the hinterland is filled with high school drop out millionaires. I grew up in the hinterland cowboy and own property in the hinterland. Give it up with your broad sweeping generalizations. I know immigrants in Toronto that are multimillionaires and can only speak pidgin English, forget being a high school dropout. For someone who has admitted to staying clear of Toronto you purport to know all about a place you don’t enter. That’s just laughable….

#59 Ponzius Pilatus on 07.17.19 at 11:16 pm

#33 crowdedelevatorfartz on 07.17.19 at 7:29 pm
@#25 Perturbed Piles
“Needless to say, he’s nowhere near a billion…”

*****

Now now now Ponzie.
Dont be putting yourself down!
We’ll have none of that!
Move to that socialist paradise Zimbabwe and convert all your money to Zimbabwe currency.
You’ll be a Trillionaire many many many times
——-
Yeah,
Rhodesia, named after the Great Cecil Rhodes.
Who pretty much forked the whole African continent.
Stripped them of their natural resources, culture and pride.
No wonder most African countries went communist during the Cold war.

#60 Sail Away on 07.17.19 at 11:27 pm

#50 IHCTD9 on 07.17.19 at 9:42 pm
#44 SoggyShorts on 07.17.19 at 8:54 pm
#35 IHCTD9 on 07.17.19 at 7:39 pm

But still, choices are a huge factor, if not the factor for the 6 figures.
E.G. My BiL doesn’t want to take over my company

Maybe. If everyone made the right choices, not everyone one would make 100k.

Funny you mention this though. I’ve noticed this same thing happening a lot. Perfectly good companies being liquidated because no one wanted them. The guy I work for will be in the same boat, all his kids are not interested in running a business (a good one too). This place would afford someone the lifestyle of a king out here where a waterfront crib on 35 acres is a paltry 1 million.

——————————-

IH, just wondering why you wouldn’t take over the company if that’s the case? Running a company isn’t hard.

#61 fishman on 07.18.19 at 12:39 am

Yesterday our fearless leader laid out 3 steps when faced with a crisis where the person(s) calling the shots have the power. And their pressing.
1/ buy time
2/ prepare tactical course of action
3/ prepare strategic course of action.

This week the Trumpster saw a weakness in his lines. Pelosi was fed up with the Gang of Four alienating those crucial middle votes. The Trumpster of Huge Gonads attacked the Gang with an outrageous condemnation. And Pelosi, Dem Party, Gang of Four & MSM instantly bit. Imagine if they had followed Garth’s advice & stalled for time. Tactically the Four acting contrite,sort of apologetic for past transgressions, less confrontational. Strategically,Pelosi getting the focus back to moderation in Democratic Party. The Trumpster could have been hung out to dry.
Luckily for us the Dems are too PC to read this blog. Tactically they took a big hit on the impeachment vote. And more important, a strategic hit by tying the radicals as the face of the Dems.Though I do fear they are starting to come around to realizing the buffoon act is just that, an act. I’m still not tired of winning. Not at all.

#62 Smoking Man on 07.18.19 at 1:23 am

What the hell was Andrew Shear thinking when he denounced Trumps tweets. Clearly he’s an owned globalist. Dear God I’m now praying for Canada.

Dose the idiot think some purple haired wack job working at star bucks in the city is going to vote for him.

You go on full on economic nationalist or become libral.

I regret giving the PC the huge donation I did this year.

Sorry Gartho but I’m going PPC I know they have microscopic chance of winning. But I refuse to vote for a Soros prefured candidate.

God Help Canada.

#63 Karan Kapoor on 07.18.19 at 1:23 am

Brantford Real Estate – As per the report an upcoming residential destination; Brantford Ontario is experiencing an increase of 15.3% in home sales (Townhouse, Single House etc.) for the first five months of 2019 as compared to same period last year says Brantford Regional Real Estate Association @.

https://brantfordnewhome.ca/Users/getBlog2

Average Rental Rates in the neighbourhood
1. Townhomes: $1700-$1900
2. Detached Homes: $2000-$2200

#64 Nonplused on 07.18.19 at 1:34 am

This is just speculation, but I think in addition to the tariff induced inflation the US Fed may also be trying to front run what is looking to be an absolute disaster in terms of US agriculture, perhaps the worst ever flood based failure in years or maybe ever. I don’t know if it’s going to be worse than the dust bowls of the 30’s caused by drought, but it is bad. Already some companies have stopped canning vegetables because they are not available from their usual suppliers. Plus they lost a lot of cattle, pigs, and chickens. Combine this with the swine flu problem in China, which is a big problem because pork is China’s #1 meat product consumed there, and we got a potential problem coming up.

I don’t perceive any actual shortages in Canada, but if food prices rocket up due to the US flooding (according to free trade we have to sell to them at market prices), food inflation could be a very real short term (1-2 years) problem starting soon. This will be a problem across the food spectrum because the unavailability of one food source leads to increased demand on whatever is available.

The Federal Reserve seems very hard to understand and mysterious, but what I do know for sure is that they have a lot of very smart people analyzing everything and they have more data than anyone.

You really have to read the news articles to get a feel for what happened. It was far more broad ranging than the floods in Alberta in 2013, which mostly affected just the valley areas, but didn’t really affect crops.

#65 Smoking Man on 07.18.19 at 1:41 am

Every waking moment this song buzzes through my head.
It’s going to happen. Hopefully not in the back. I want to see the face of my enemy so I can give em the thumbs up.

https://youtu.be/eJlN9jdQFSc

#66 SoggyShorts on 07.18.19 at 1:41 am

#50 IHCTD9 on 07.17.19 at 9:42 pm
#44 SoggyShorts on 07.17.19 at 8:54 pm
#35 IHCTD9 on 07.17.19 at 7:39 pm
I’m sure you’re right and not everyone can make 100K, but a whole lot of people could and choose other paths.
It’s $50/h that’s what 100K requires and literally every trade costs the consumer at least that much, usually triple so the challenge is in trying to cut out the middle man(your boss)
The choice between punching a clock or going on your own is a hard one and if I’m being honest I’m not sure which I’d chose if I could do it again.
Even though I’m going from zero to retired in under 10 years it was a real challenge the first 5 years- plenty of 70-80 hour weeks with zero pay, using credit card advances to make minimum payments on other credit cards, etc.

I’m currently mentoring a friend’s nephew who went to trade school and is starting his own business and part of me wants to scream “Don’t do it!” But the payoff (if it comes) is pretty damn hard to argue against:
This and last year I’m working 6mo, 20h weeks.
Note: A supportive wife has made ALL the difference and certainly not everyone has that.

#67 DON on 07.18.19 at 1:41 am

#18 crowdedelevatorfartz on 07.17.19 at 6:17 pm

@#12 DON
“She reads the blog occasionally and comments but I don’t know her handle so I tread lightly.

*****
I’m thinkin
“She who must be obeyed” ?

******

Good one.

I can confirm she is not Jane24.

#68 Nonplused on 07.18.19 at 1:43 am

#53 Ace Goodheart

Trump is no more racist than the next guy. What he has managed to point out, brilliantly, is that the people who cry “racist” are just as racist and bigoted as those they accuse. We all need to take a look at ourselves.

I mean you have to look at the optics. When Trump condemns Omar for anti-antisemitism and refusing to condemn violence by antifa, it sells huge. When he tells her to go home and fix her own country first and then come back and fix (ours), it sells. He’s taking a calculated gamble, but I think he’ll win again. Americans are tiered of being called racist when it is one of the least racist places on the planet. Sure it’s still racist, but they have gone further faster than anywhere else besides maybe Canada to foster equality. As such they don’t like to be criticized. Just try getting a transitional surgery in Saudi Arabia and see how far that gets you. Or anywhere else in the middle or far east for that matter.

#69 SimplyPut7 on 07.18.19 at 1:44 am

It never ceases to amaze me the number of realtors who troll your site to try and convince people to buy an overpriced house versus renting and living debt-free.

Can’t wait to see the number of rental units that come to the GTA market over the next few years.

https://www.bnnbloomberg.ca/toronto-set-for-record-apartment-surge-after-rent-control-lifted-1.1286320

#70 Smoking Man on 07.18.19 at 1:51 am

DELETED

#71 DON on 07.18.19 at 2:07 am

#35 IHCTD9 on 07.17.19 at 7:39 pm

#120 JonBoy on 07.17.19 at 4:29 pm

Choices, friend. We choose to be typical. We are not forced to be typical.

Stop looking at what I am and what I have and look at the path and progression and you’ll see that I was perfectly “typical” in terms of income for a lot longer than I was a 2%er.
——

I think I have mistakenly given you credit for knowing a few things about me from my fairly regular postings here.

I’ll give you a quick rundown: Household income is 125K or so. Own a house free and clear. On track for a 7 figure portfolio by 65. Drive a 16 year old truck. Just shingled my own roof, just rebuilt the tandem axle trailer I welded up myself 15 years ago. I change out doors and windows. I change out starters and alternators. I put an addition on our house bottom to top singlehandedly less digging the hole. I live in small town Ontario where our house cost 2x income. I went into overdraft almost every month for 2 years early on so our portfolio could get fed. I have sent both my kids to a private school since jk. Total Charitable donations last year were 20k.

In short, I am far from typical, and I know the path you travel on very well. It sounds like we are very similar IMHO.

Yes you got richer as you got older, so did I. All I am saying is MANY do not get the good fortune we have received. 6 figure household incomes are rare, let alone individual ones. No matter what you or I have managed to achieve, there is no question that it takes a certain amount of cash flow to do my list of 4 things. If you had never got past 60k, your situation now would be vastly different. If Ms. IHCTD9 never worked, our situation would also be much different.

We both should consider ourselves fortunate, most will never have 6 figure household incomes – and that is a fact. It takes at least that much to do what we have done. Two incomes make all the difference in the world for regular folks.
******************

You are both right.

Some people have the endurance to live modestly and some don’t. All about needs and perspectives. It is possible, but it takes discipline.

Always a benefit to spend time with your children and after 5 yrs old there is only after school care to deal with until 13 so both spouses can work. Having a spouse stay home in the 0 to 5yrs is priceless if you are playing the long game. When my wife was off with the kids she went back to school and entered a different career.

But then again sacrifice is not for everyone.

#72 Janet Juggs on 07.18.19 at 4:44 am

Trump actually isn’t the guy who raised rates and created a mini recession, that was Powell , stupidly jacking rates 100 BP’s. The reason stocks went higher is because corporate profits continue to improve. Many stocks have gone ballistic because thier balance sheet prospects are brilliant.

This is not reflected in the Trump Hating media, because of a political bias, not based on any fundamental analysis. There are many angry desperste voices hoping for a crash so as to turn back the clock and get in. But as any responsible money manager knows there is no going back once you’ve let yourself fail. The meltup continues. Either grow a set or leave the field.

#73 Josh Franklin on 07.18.19 at 7:41 am

Even if the U.S. Federal Reserve, Bank of Canada and other central banks were to actually give a real, true metric on inflation, today is at least 3.5% to 4% a year, they still would not raise interest rates to the real, normal level between 5.5% to 7%.

Why would they and pay extra in billions a day in compound interest on their debts, corporate and government. Look at their inflation numbers back in the early to mid 90’s, 2.5% to 3.5% and rates were in the 7% to 9% range. Nothing has changed except the U.S. national debt is 5 times bigger 5 trillion to 20 trillion U.S. . This is a no brainer people.

#74 Leo Trollstoy on 07.18.19 at 8:25 am

#71 DON on 07.18.19 at 2:07 am
When my wife was off with the kids she went back to school and entered a different career.

But then again sacrifice is not for everyone.

Clearly that sacrifice wasn’t for you either

#75 BillyBob on 07.18.19 at 8:29 am

#40 Captain Uppa on 07.17.19 at 8:09 pm
“You know the drill: the GTA has all the jobs. YCR has all the beauty. The rest of us are dog poo.”

With all due respect, I feel like that type of irrational hatred is far more directed towards the GTA from outside the country, as opposed to from the GTA to the rest of the country.

And it’s not close.

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

Do you and MF need a tissue?

No one harbours hatred to you, you have to have your head pretty far up where the sun don’t shine to believe you even matter that much.

Perhaps the jibes persist precisely due to whiny comments like both our yours? But if everything is so great why do you even respond?

It’s all just so UNFAIR! lol

#76 IHCTD9 on 07.18.19 at 8:33 am

#60 Sail Away on 07.17.19 at 11:27 pm

IH, just wondering why you wouldn’t take over the company if that’s the case? Running a company isn’t hard.
____

The boss and I are the exact same age so we’ll likely throw in the towel around the same time. If he wants to bail early, I would be cool with running it until he finds a buyer, and/or thru a transfer of ownership if the new owner needs to learn the ropes a bit, but buying the place is not in the cards.

#77 Leo Trollstoy on 07.18.19 at 8:33 am

#68 Nonplused on 07.18.19 at 1:43 am
When he tells her to go home and fix her own country first and then come back and fix (ours), it sells.

He didn’t tell her to fix her own country

That’s a liberal projection

Just like the journalist salespeople telling me that I should consider it “racist” when no race or country was mentioned

Then I will tell you. – Garth

#78 Leo Trollstoy on 07.18.19 at 8:34 am

#71 DON on 07.18.19 at 2:07 am
When my wife was off with the kids she went back to school and entered a different career.

But then again sacrifice is not for everyone.

Clearly that sacrifice wasn’t for you either

#79 Leo Trollstoy on 07.18.19 at 8:37 am

In Toronto a LOT of people make over $100k

A LOT

There’s an entire financial services industry that caters to hordes of them

Just because they’re not in the majority doesn’t justify a person to accept making less – unless that person has given up

#80 Linda Peterson on 07.18.19 at 8:44 am

I am tired of the Liberal media trying to report on things they have no real life experience about. I am talking about how every year I hear that minimum wage workers or lower income Canadians can’t afford to pay for rent and other life’s necessities. I know it is not easy but it is not so dire and a crisis they make it out to be. People have to think twice and make smart decisions about their lives and finances.

I have worked all my life with a little higher than minimum wage, currently 16% more, $16.24 an hour. I work 5 days a week, 9.5 hours a day. My net paycheck is $670.34 a week.

After I pay my rent, car insurance, gas, food and all other expenses I am left with $275 a week without including my RRSP tax refund. I contribute each year the maximum to my RRSP and take the tax refund with other yearly savings and reinvest it in my TFSA maximizing that too $6,000 this year for the first time.

After all this I still have $40 a week into my savings account for everyday expenses that may come up. This is $10,000 at this point. My RRSP’s and TFSA’s balances are now $86,240. I have been doing this for 7.5 years now age 28. Debt scares the hell our of me since I saw during my younger years growing up my parents always in deep debt with the house, cars, clothes etc. trying to look like someone they could never be and afford. They even claimed bankruptcy when their high interest loans, credit cards of 18% to 35% was the last straw.

This is why I am very sacred of debt and make it a point to never be in that type of situation and save at such a high rate. When I was 20, I saved up for a $10,500 used car and went to work using public transportation for 1 year to avoid debt. This is why I don’t have $300 to $400 a month car payments for 60, 72 months like most indebted Canadians.

I am on my own, no family to help me and people really need to look themselves in the mirror and stop lying to themselves because your just self sabotaging yourselves.

#81 crowdedelevatorfartz on 07.18.19 at 8:46 am

@#59 Pontificating Proletarian
” No wonder most African countries went communist during the Cold war.”
+++++
Ignorance was bliss.
And they African “leaders” have done a bang up job of running things themselves havent they?.

The majority of African countries are now failed, corrupt, burnt out shells of their former colonial selves with endless proxy wars, disease, famine and pestilence forcing millions of refugees to swarm from country to country overwhelming the soon to be next failed state…

I’m quite sure that the average African citizen would trade their “freedom” of today for the colonialism of yesteryear.
Infrastructure that works, a rudimentary justice system that works, hospitals, schools, jobs….you know. Imperialist things like that.
Unfortunately , since the average age of most Zimbabweans, South Africans, Nigerians, Somalians, Libyans has fallen dramatically since they have been liberated in the 1960’s and 1970’s….there are probably very few left who remember the time of their imperialist overlords…
Never mind.
Lets get back to the hyper inflation, corruption, disease, death, dictatorships and proxy wars shall we?
Freedom is so…..liberating.

#82 IHCTD9 on 07.18.19 at 8:48 am

#66 SoggyShorts on 07.18.19 at 1:41 am

I’m currently mentoring a friend’s nephew who went to trade school and is starting his own business and part of me wants to scream “Don’t do it!” But the payoff (if it comes) is pretty damn hard to argue against…
______

Ah, all that work and sacrifice is easier when you’re young – he might as well sweat now, he won’t want to later! He’s always got the trade to fall back on if things don’t work out – most trades pay well and I don’t see that changing anytime soon. If anything they’ll pay more – along with not wanting to run businesses these days, many folks also don’t want to sweat or get their hands dirty either!

I know a few guys who work a trade as an employee or a small 1-4 man business, and moonlight as well – they make plenty enough, and do so in a very low cost area to live. Best of both worlds IMHO.

#83 crowdedelevatorfartz on 07.18.19 at 8:50 am

@DON
“I can confirm she is not Jane24.”

+++++
Your loss.
Apparently Jane24 is rich rich rich and lives in a palace.

#84 IHCTD9 on 07.18.19 at 8:56 am

#58 Hogtown Harry on 07.17.19 at 11:07 pm
#50 IHCTD9 on 07.17.19 at 9:42 pm

“Maybe. If everyone made the right choices, not everyone one would make 100k. We have PhD cabbies in the gta, and we have high school dropout millionaires out here in the boonies.”

Your broad sweeping generalizations are a gas. Yep, Toronto is filled with PhDs driving cabs and the hinterland is filled with high school drop out millionaires. I grew up in the hinterland cowboy and own property in the hinterland. Give it up with your broad sweeping generalizations. I know immigrants in Toronto that are multimillionaires and can only speak pidgin English, forget being a high school dropout. For someone who has admitted to staying clear of Toronto you purport to know all about a place you don’t enter. That’s just laughable….
____

A couple of comments disparaging Toronto 2 weeks ago and your panties are still in a bunch. Good grief mang….

You can chill homie, nobody made any broad sweeping generalizations.

PS – Toronto smells like *** and is a dump :).

#85 IHCTD9 on 07.18.19 at 9:03 am

#56 Hogtown Harry on 07.17.19 at 11:00 pm

You are correct in that you are not listening. You seem to forget that this dialogue started with your comment that you couldn’t understand why anyone would pay $700k for new detached homes in Brampton that some blog dog said were being sold in early 2019. I am telling you that that would be a steal. Try and find a new detached home for $700k in Brampton and post it to prove me wrong. Your comment, “why would anyone pay 700k for a house in Brampton” is assinine. Brampton is part of the GTA . 700k doesn’t buy you a tear down in many parts of Toronto. 60 year old bungalow tear downs in south Etobicoke are over a million. Port Credit tear downs are also over a million…. You haven’t a clue on prices in the GTA.
___

Sorry, you’re still trying to convince me that peeps are selling their highly desirable mansions in highly desirable Brampton for hundreds of thousands under market value?

[Billy Crystal voice:] “I’m not listening!”

PS – Toronto smells like a skunk being run over by a manure spreader in front of a Paper Mill. :)

#86 IHCTD9 on 07.18.19 at 9:18 am

#55 Sail Away on 07.17.19 at 10:30 pm
#43 IHCTD9 on 07.17.19 at 8:37 pm
#21 Sail away on 07.17.19 at 6:31 pm

T2 really didn’t need to say anything
——-

We need to somehow Ram this suggestion home for Justin.

———————-

Agreed, but damn he’s photogenic! That counts for a lot with today’s voters. I’d say election chances of his removal are 50/50 at best.
___

Yeah, I’m not holding my breath either, I quit thinking Canadians actually care about base level civilization concerns a long time ago.

On the flip side, maybe my public service working wife will get a raise, and how about another 2-3K in CCB? – perhaps another chop in my income tax bill too.

If T2 gets another round, it’ll probably empower him to be an even bigger douche bag than he was last time.

I’ll bet we won’t be hearing anything about how the budget will balance itself this time around though, eh Justin?

#87 Dorothy's turn on 07.18.19 at 9:36 am

Good morning Garth,

May I suggest you invite Dorothy to write one day. Behind every great person is a great person.

#88 James on 07.18.19 at 9:40 am

#116 Smoking Man on 07.17.19 at 3:53 pm

James on 07.17.19 at 11:42 am
#65 Smoking Man on 07.17.19 at 2:58 am
Hey James.
So you’re running your dads company , what risks have you taken you little spoiled child.
You are going to run it into the ground. Because you dont understand risk .
Hope your dad fires you ,and let’s little sister fix what your killing.
I am the Smoking Man and I can.
Cant isn’t in my vocabulary.
___________________________________________
Where did I say that I was running my fathers company Old Man? My father is in the medical field and I am not!

Risk in business is the exposure an organization has to the dynamics that will reduce its profits or cause it to miscarry. I have minimized our exposures that threaten our company’s ability to achieve our financial goals. Every company must put in place a risk management strategy. We are successful and profitable and that is why I run a company not due to Daddy you benighted also-ran. In university we learned how to mitigate and work with risk so I’m quite familiar with it. You Old Man are a unenlightened risk taker and have not adopted a risk management strategy just by the fact that you smoke gregariously and imbibe copious quantities of alcohol. This lack of a plan will be your undoing. What is the purpose in life of creating huge amounts of money if your future uncharted and full of risk?

Huh, can’t is not in your vocabulary along with most other intelligent words?
…………………………………
Nice story, I still think you’re basement dwelling atifa wack job..
Everytime I set up a meet up with the blog dogs when in TO you always said you show up on your Harley. But never do.
And if you were entrepreneurialish you would love Trumps policies. You would understand that dropping taxes and brooming regs makes money and prosperity for all.
So you are full of child..
_________________________________________
Wow Old Man I don’t even know what to say to that, I’m truly hurt. Yes you have me, I’m in my basement planning my next ATIFY whack. WTF “I’m so full of child…?” I hope when I get to be you age they have meds for this kind of malady.
Lmao, learn to spell and please use the Queens English.
BTW: Old man go back to the last meet look it up #110 James on 08.29.18 at 9:54 am.
If you knew anything about Harleys then you would understand. Besides Ive seen you on Periscope why would I want to meet you? Being an entrepreneur and having fewer regulations are always desirable and practical for successful commerce practices. The economy was in full gear and continuously soaring when the Orange idiot took over. All Trump has done is cut taxes for the 1% and corps. Trump is a childish idiot with his buffoonery and reckless lack of restraint could actually cause a war where no one wins. He is not what he purports to be Old Man look behind the curtains.

https://www.bbc.com/news/business-42748243
https://ig.ft.com/sites/numbers/economies/us/

#89 James on 07.18.19 at 9:45 am

#29 Tony on 07.17.19 at 7:11 pm

Re: #7 Hello Fellow Miscreants on 07.17.19 at 5:25 pm

Trump’s spiel saying we’re going to normalize rates the day after the November 2016 election never materialized.
____________________________________________
Now Trump wants to play monopoly with the FED and tinker with a lower US$. Its only a matter of time before Jerome Powell gets a phone call from Trump asking him to meet for lunch.

#90 Penny Henny on 07.18.19 at 9:49 am

#67 DON on 07.18.19 at 1:41 am
#18 crowdedelevatorfartz on 07.17.19 at 6:17 pm

@#12 DON
“She reads the blog occasionally and comments but I don’t know her handle so I tread lightly.

*****
I’m thinkin
“She who must be obeyed” ?

******

Good one.

I can confirm she is not Jane24.

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

I pray for your sake it’s not ‘Carly from Cabbagetown’

#91 millmech on 07.18.19 at 9:55 am

#27
The 2010 Chilean earthquake knocked the earth off its axis by a degree if I am correct.

#92 James on 07.18.19 at 9:55 am

#73 Josh Franklin on 07.18.19 at 7:41 am

Even if the U.S. Federal Reserve, Bank of Canada and other central banks were to actually give a real, true metric on inflation, today is at least 3.5% to 4% a year, they still would not raise interest rates to the real, normal level between 5.5% to 7%.

Why would they and pay extra in billions a day in compound interest on their debts, corporate and government. Look at their inflation numbers back in the early to mid 90’s, 2.5% to 3.5% and rates were in the 7% to 9% range. Nothing has changed except the U.S. national debt is 5 times bigger 5 trillion to 20 trillion U.S. . This is a no brainer people.
___________________________________________
The US national debt is around 22 trillion the total US debt is at 73 trillion.

https://www.usdebtclock.org/

#93 Jay Leito on 07.18.19 at 10:08 am

James, it is even worse than Josh Franklin said. The more interest rates stay low and get lower, the higher debt explodes.

Look since the mid 90’s when interest rates dropped dramatically, debt exploded and especially under Clinton, Obama.

#94 millmech on 07.18.19 at 10:17 am

#35 IHCTD9
There are a lot of people who make six figure incomes and most spend it as fast as they make it. A co worker was complaining about being behind on payments, remortgaged and now has a new sports car payment to go along with his big new truck payment. I did not see his new Challenger right away because as soon as the cash woes went away he took the family to Europe for a month as a reward for stress they went through, also on the house.
I practice stealth wealth(bank 50%+of my pay), keep a low profile, you know the broke poor renter that can not afford anything. nobody asks me for money since I appear to have none.

#95 Smoking Man on 07.18.19 at 10:27 am

James on 07.18.19 at 9:45 am

#29 Tony on 07.17.19 at 7:11 pm

Re: #7 Hello Fellow Miscreants on 07.17.19 at 5:25 pm

Trump’s spiel saying we’re going to normalize rates the day after the November 2016 election never materialized.
____________________________________________
Now Trump wants to play monopoly with the FED and tinker with a lower US$. Its only a matter of time before Jerome Powell gets a phone call from Trump asking him to meet for lunch.
….
Real entrepreneurs love lower rates and deregulation.
But not you.

#96 millmech on 07.18.19 at 10:32 am

ITHCD9
https://youtu.be/20rMBoMK9j0
It can be done

#97 IHCTD9 on 07.18.19 at 10:34 am

#79 Leo Trollstoy on 07.18.19 at 8:37 am
In Toronto a LOT of people make over $100k

A LOT

There’s an entire financial services industry that caters to hordes of them

Just because they’re not in the majority doesn’t justify a person to accept making less – unless that person has given up
___

The median individual income in Toronto the last time StatsCan checked (2015) was ~30K. Curiously, that was the lowest in the entire GTA, and 5K lower than the rest of Canada.

StatsCan says the incidence of Torontonians making over 100K is 10.5%. That compares to the rest of Canada at 8.7%

So Toronto has 1.8% more 100+K earners than what you can expect to see for rest of the country.

Not really a “LOT” IMHO.

#98 James on 07.18.19 at 10:58 am

Give me a break, two MPs are worried about their workload. If I’m correct do we not pay our government employees quite well? Then they should not continue with an assignment if the burden of it is too much for them, but they are being well reimbursed for it. The suggestion being that, if you can’t deal with it, you should leave the labor to another who can. As the old adage goes ‘if you can’t stand the heat, get out of the kitchen!’

https://www.cos-mag.com/psychological-health-safety/40602-2-mps-warn-parliamentary-workload-is-going-to-kill-someone/?utm_source=GA&utm_medium=20190718&utm_campaign=COS-Newsletter&utm_content=E73E26D0-C956-4801-92AC-A65D1D875C20&tu=E73E26D0-C956-4801-92AC-A65D1D875C20

#99 IHCTD9 on 07.18.19 at 11:03 am

So Toronto has 1.8% more 100+K earners than what you can expect to see for rest of the country.

Make that 20%, I guess that’s a decent “increase”.

But 1.8 points still ain’t huge

#100 IHCTD9 on 07.18.19 at 11:10 am

#96 millmech on 07.18.19 at 10:32 am
ITHCD9
https://youtu.be/20rMBoMK9j0
It can be done
___

My comments on Women working too relate to those that undertake an “old-school” lifestyle as laid out yesterday in a 4 item list.

These two are doing 1 out of the 4 items. Sure that’s doable. They are another MR couple with no kids, no house, no comfy living (ie essentially no bills)- just saving like crazy.

#101 James on 07.18.19 at 11:16 am

#95 Smoking Man on 07.18.19 at 10:27 am

James on 07.18.19 at 9:45 am

#29 Tony on 07.17.19 at 7:11 pm

Re: #7 Hello Fellow Miscreants on 07.17.19 at 5:25 pm
Trump’s spiel saying we’re going to normalize rates the day after the November 2016 election never materialized.
____________________________________________
Now Trump wants to play monopoly with the FED and tinker with a lower US$. Its only a matter of time before Jerome Powell gets a phone call from Trump asking him to meet for lunch.
….
Real entrepreneurs love lower rates and deregulation.
But not you.
__________________________________________
Tinkering with the value of the USD is cause for concern as it could start a currency war with China and or the Euro States. A war that the USA can not win.
I am already an established successful entrepreneur. Now that we have established that where did I state that I do not want lower rates and deregulation? Show me. Old Man take you morning pills, put on your Depends, get your walker and oxygen out and goes for a cigarette. Please light it up near the tank. Perhaps that will clear your cerebrum.

#102 IHCTD9 on 07.18.19 at 11:17 am

#94 millmech on 07.18.19 at 10:17 am

I practice stealth wealth(bank 50%+of my pay), keep a low profile, you know the broke poor renter that can not afford anything. nobody asks me for money since I appear to have none.
___

That’s a good plan. I so far have not had much choice but to look poor lol! That is changing though as one big cost milestone after another runs its course. By the time I hit 52, it should be just basic food, taxes and utilities for the wife and I – no more 5 figure tuition and orthodontist bills. :)

I am going to splurge a bit though, I think…

#103 so it continues on 07.18.19 at 11:18 am

I see the usual suspects are still fighting over the internet. Are you peeps all retired with nothing better to do than disparage each other all day everyday?

#104 expat on 07.18.19 at 11:21 am

#49 Shawn

https://business.financialpost.com/pmn/business-pmn/bank-of-canada-to-buy-back-up-to-c500-mln-of-bonds?s=

There is a link to the announcement.

Odd that they are are not letting the bonds mature.
Very odd

#105 expat on 07.18.19 at 11:28 am

#49 they buy back bonds to increase the money supply

The Fed has a statement about this

Conducting Open Market Operations

Lastly, the Fed can affect the money supply by conducting open market operations, which affects the federal funds rate. In open operations, the Fed buys and sells government securities in the open market. If the Fed wants to increase the money supply, it buys government bonds. This supplies the securities dealers who sell the bonds with cash, increasing the overall money supply.

Conversely, if the Fed wants to decrease the money supply, it sells bonds from its account, thus taking in cash and removing money from the economic system. Adjusting the federal funds rate is a heavily anticipated economic event.

The cryptic nature of the announcement is interesting…

Time will tell what this is…..

#106 The Smoker on 07.18.19 at 11:38 am

#101 James – Who let the Old Man out of his cage? Its time to round up the usual suspects again.

#107 DON on 07.18.19 at 12:02 pm

#74 Leo Trollstoy on 07.18.19 at 8:25 am

#71 DON on 07.18.19 at 2:07 am
When my wife was off with the kids she went back to school and entered a different career.

But then again sacrifice is not for everyone.

Clearly that sacrifice wasn’t for you either

******************
Not sure what you are getting at.

Having to juggle both children, household and night classes is not a sacrifice for the betterment of the household(?). Did I mention I also went back for more education in the same time period (lucky I could do it by distant learning). I did my homework after the kids went to bed – the kids were our first priority.

No grandparents to help…we buckled down and accepted our responsibilities and now are enjoying some of the benefits. No lavish vacations, did all the minor repairs on vehicles myself etc etc.

Leo troll somewhere else or bring something of substance. You might want to work on your powers of deduction. FFS!

#108 Emery Bogdan on 07.18.19 at 12:02 pm

https://www.breitbart.com/2020-election/2019/07/17/revealed-tom-steyers-firm-funded-coal-plants-australia-china-indonesia/

The guy who spent the second most to kill Canadian energy and fund Trudeau’s campaign against Alberta is Tom Steyer, a coal magnate from San Francisco. Just how stupid are we?

#109 Captain Uppa on 07.18.19 at 12:03 pm

>>#47 IHCTD9 on 07.17.19 at 9:21 pm
#40 Captain Uppa on 07.17.19 at 8:09 pm
“You know the drill: the GTA has all the jobs. YCR has all the beauty. The rest of us are dog poo.”

With all due respect, I feel like that type of irrational hatred is far more directed towards the GTA from outside the country, as opposed to from the GTA to the rest of the country.

And it’s not close
——

You’re saying folks from outside of Canada think the GTA sucks too?>>

Don’t be glib. I made a correction post right after that post. It was to read “…from elsewhere around the country”.

Your pettiness is a stinky cologne.

#110 WUL on 07.18.19 at 12:05 pm

Perhaps we are witnessing the Kenney Bump in Calgary real estate. Just past mid-July and sales have stiffened. What wouldn’t stiffen with him as Premier.

Sales up but average price down appreciably.

According to CREB sales YoY of all housing types +14.25% and detached +11.15%.

Who knows.

#111 NoName on 07.18.19 at 12:07 pm

#104 expat on 07.18.19 at 11:21 am
#49 Shawn

https://business.financialpost.com/pmn/business-pmn/bank-of-canada-to-buy-back-up-to-c500-mln-of-bonds?s=

There is a link to the announcement.

Odd that they are are not letting the bonds mature.
Very odd

It was a 2006-7 could be later, some dude was opening ej an office near buy and he walked neighborhood and he was giving a flyers away. I remember talking to him and i clearly i do remember he mentioned 25y some bank bond yielding 4,5 or 5%, we talked a little bit i did metiond what about their precious metal fund, he took and email and left.

I gues didnt take him long to come to his senses.

Anywise few days later email comes with some info and i remember wondering why was bond recallable and replaceable with new product that yields less is interest rates go down.

rate now for 10yr bond is at 1 and 3/4 and what they are buying back ranges from 3/4 to 3% median rae is 1.75, or around that number. if its rate to go down they’ll be saving them self money.

look at eu countries and their 10y bonds they are 75-100bps lower, except for few.

https://tradingeconomics.com/bonds

#112 Sail Away on 07.18.19 at 12:08 pm

Smokey and James, can you give it a break? We get it- you’re each successful, rich, handsome and smarter than the other. How does any of that benefit the blog?

#113 DON on 07.18.19 at 12:10 pm

#90 Penny Henny on 07.18.19 at 9:49 am

I pray for your sake it’s not ‘Carly from Cabbagetown’

******
LOL – I know for sure she is not the Cabbage lady.

#114 Captain Uppa on 07.18.19 at 12:11 pm

>> #75 BillyBob on 07.18.19 at 8:29 am
#40 Captain Uppa on 07.17.19 at 8:09 pm
“You know the drill: the GTA has all the jobs. YCR has all the beauty. The rest of us are dog poo.”

With all due respect, I feel like that type of irrational hatred is far more directed towards the GTA from outside the country, as opposed to from the GTA to the rest of the country.

And it’s not close.

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

Do you and MF need a tissue?

No one harbours hatred to you, you have to have your head pretty far up where the sun don’t shine to believe you even matter that much.

Perhaps the jibes persist precisely due to whiny comments like both our yours? But if everything is so great why do you even respond?

It’s all just so UNFAIR! lol>>

Hello there Billy Bob. Interesting handle, wonder if it’s your actual name (wouldn’t be surprised).

Let me remind you of what Garth wrote in the above post:

“It’s relatively easy to hate people posting on this blog from Toronto. Even moreso from Vancouver. You know the drill: the GTA has all the jobs. YCR has all the beauty. The rest of us are dog poo.”

I’ll give you the benefit of the doubt and assume you can read, alas comprehension might be too high a wall to climb.

Garth is saying that people from GTA are easy to despise on this blog because we consider everyone else “dog poo”.

My point, which is 100% true, is that most people on this blog actually consider GTA the “dog poo”. Just look at comments on this thread. So the hate is coming towards us, not from us.

#115 millmech on 07.18.19 at 12:18 pm

#102 ITHCD9
Splurge a bit it is well deserved, careful of lifestyle creep though, I have hit my FIRE number so now I am looking at buying the retirement home in a LCOL town in the BC interior now.
Going to get property with a wired shop for the lathe, milling machines and welders so I can tinker/putter in my old age.
Trying to figure out a UASB water treatment system to reuse as much water as possible and a possible compost water heating system to heat house water.

#116 James on 07.18.19 at 12:21 pm

#106 The Smoker on 07.18.19 at 11:38 am

#101 James – Who let the Old Man out of his cage? Its time to round up the usual suspects again.
___________________________________________
So do we start with Curly, Larry and Moe?

#117 so it continues on 07.18.19 at 12:38 pm

#116 James on 07.18.19 at 12:21 pm
#106 The Smoker on 07.18.19 at 11:38 am

#101 James – Who let the Old Man out of his cage? Its time to round up the usual suspects again.
___________________________________________
So do we start with Curly, Larry and Moe?

___________

CURLY= SM
LARRY= BILLYBOB
MOE=IHCTD9

#118 IHCTD9 on 07.18.19 at 12:38 pm

#25 Ponzius Pilatus on 07.17.19 at 6:43 pm

This is a story about renting vs. buying, from the perspective of two Austrians…

…The other is Ponzius Pilatus who immigrated to Canada in the 70ths and quickly succumbed to house horniness.
___

Hey Ponzie!

You are originally from Austria? You might like this YT channel I check out from time to time:

Survival Lilly

https://www.youtube.com/channel/UCS4LBgyn1WLSojiQI4aPjtg

Not surprisingly, she does “survivalist” vids. Most are pretty weak from a survivalist standpoint, but she usually finds an opportunity to don her little bikini and “have a bath” or “go for a swim” in the lake making the vids a little more interesting. She also seems to like travelling to Canada to do “wilderness” vids. She does not own a house, but has a pretty sweet bug-out shelter, and appears well prepared for a major SHTF event. :)

Enjoy!

#119 IHCTD9 on 07.18.19 at 12:47 pm

#109 Captain Uppa on 07.18.19 at 12:03 pm
>>#47 IHCTD9 on 07.17.19 at 9:21 pm
#40 Captain Uppa on 07.17.19 at 8:09 pm
“You know the drill: the GTA has all the jobs. YCR has all the beauty. The rest of us are dog poo.”

With all due respect, I feel like that type of irrational hatred is far more directed towards the GTA from outside the country, as opposed to from the GTA to the rest of the country.

And it’s not close
——

You’re saying folks from outside of Canada think the GTA sucks too?>>

Don’t be glib. I made a correction post right after that post. It was to read “…from elsewhere around the country”.

Your pettiness is a stinky cologne.
____

C’mon Uppa, don’t be like the Hogster!

I know what you meant to say. I don’t make a point of ****ting on dogs who use bad grammar, or make spelling/math mistakes like many others do, so I allow myself a little “play on words” humour once and a while.

That one was just too juicy to pass up! :)

#120 Leo Trollstoy on 07.18.19 at 12:51 pm

Anyone in Toronto not making over $100k lacks ambition

It’s a low bar

#121 IHCTD9 on 07.18.19 at 12:54 pm

#115 millmech on 07.18.19 at 12:18 pm
#102 ITHCD9
Splurge a bit it is well deserved, careful of lifestyle creep though, I have hit my FIRE number so now I am looking at buying the retirement home in a LCOL town in the BC interior now.
Going to get property with a wired shop for the lathe, milling machines and welders so I can tinker/putter in my old age.
Trying to figure out a UASB water treatment system to reuse as much water as possible and a possible compost water heating system to heat house water.
__

That sounds like my kind of retirement! If you are settling in a wooded area, check out wood gasification as well as evacuated solar tubes for hot water/heat.

I am going to have to save right up to retirement unless I walk into a big unexpected sum – but that’s cool. I could do more – and maybe I will. Creep has happened, but debt isn’t part of it so far. I am actually undergoing a bit of a “re balancing” of attitude towards my finances right now. It’ll be a few years before I hang my hat on it.

#122 Leo Trollstoy on 07.18.19 at 12:56 pm

Anti-Trump propaganda still not working

https://www.reuters.com/article/us-usa-trump-poll-idUSKCN1UB2UD

The Squawk needs to try something new. Time is running out!

#123 Leo Trollstoy on 07.18.19 at 12:59 pm

Every “seniors are not prepared for retirement” article is marketing propaganda pushed out by a financial institution

You’re welcome

Not in my experience. – Garth

#124 Leo Trollstoy on 07.18.19 at 1:02 pm

Trump playing chess while liberals drooling and having a food fight amongst themselves

https://www.nbcnews.com/politics/politics-news/how-trump-flipped-script-pelosi-squad-n1030041

#125 IHCTD9 on 07.18.19 at 1:09 pm

#112 Sail Away on 07.18.19 at 12:08 pm

Smokey and James, can you give it a break? We get it- you’re each successful, rich, handsome and smarter than the other. How does any of that benefit the blog?
___

Seconded.

I like a good “new-one-ripping” session as much as the next guy – but it seems like this one has been going on for… years.

#126 crowdedelevatorfartz on 07.18.19 at 1:13 pm

@#103 and so it continues

“I see the usual suspects are still fighting over the internet. Are you peeps all retired with nothing better to do than disparage each other all day everyday?”

****
Fear not.
We’ll get around to you eventually….. once the nurse in the assisted living home brings us our meds….

#127 Shawn Allen on 07.18.19 at 1:25 pm

Government of Canada Buys back bonds. And nothing to see here.

Expat at 104 and 105 kindly responded to my post at 49 where I asked about Expat’s post about the Bank of Canada buying back bonds

**********************************
Okay, thank you.

The link provided indicates it is the Government of Canada that is buying back bonds. The bank of Canada is doing the transaction but it is on behalf of the government of Canada.

This is not the Bank of Canada putting bonds onto its balance sheet ala FED quantitative easing. (And I don’t think the impact is the same- when the central bank buys bonds they create and issue new money to do so. When the government buys back bonds they are using existing money I believe.)

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

For Release: 15:30 E.T.
Publication : 15 h 30 HE OTTAWA
2019.07.16
Cash Management Bond Repurchase Operation
Preliminary Call for Tenders

The following cash management bond repurchase operation will be conducted by the Bank of Canada on behalf of the Government of Canada, subject to the “Standard Terms for Repurchase Operations of Government of Canada Marketable Bonds”.

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

On its face this seems to suggest that the government of Canada has too much cash at the moment (what with lots of tax recently collected). Having too much cash they can repay some debt. Not much to see here. They presumably have huge seasonal swings in their cash balances and this is just what it says – cash management.

Note they are using the ‘standard terms” suggesting this is not an unusual transaction.

And where does the government keep its cash? Does it have accounts at the commercial banks? When you cash a government cheque does the government’s deposit account at the bank you cashed it at go down? Or does it keep an account at the bank of Canada that goes down? Sorry I am not familiar with how that works at all.

As far as whether these repurchases from securities dealers or other investors do anything to really increase the money supply, I think it depends who resells bonds to the government and what they do with the cash received. Also on whether the government’s deposits at commercial banks go down.

#128 n1tro on 07.18.19 at 1:35 pm

#80 Linda Peterson on 07.18.19 at 8:44 am

Great job Linda! More inspirational than the 2 millennials Garth had featured awhile back, both with high paying tech jobs living on the cheap and copying his blog idea.

#129 aa3 on 07.18.19 at 1:39 pm

In BC the government will continue with more and more draconian taxes on property.. because what else is there to tax.

The alternative would be a down sizing of the government.. but after thinking about it I do not believe that is a possibility, even if teh political will was there.

At this point everyone in BC works for the government, so a down sizing of the government would cause an economic crisis anyway.

It leaves only one path, which I predicted back in 2013 that the government would go down.. monstrous taxes on real estate.

While taxes on capital are always doomed to fail, as the capital is an abstraction, and as soon as it becomes not profitable to hold the capital, the nominal valuation of the capital disappears… even if it only buys the government a few more years, they will go for it.

#130 Suspect In Vegas on 07.18.19 at 1:50 pm

#116 James – This just happened in Vegas, and the suspect was taken away.
https://www.youtube.com/watch?v=-QWkbwtkvJI

#131 Ace Goodheart on 07.18.19 at 2:03 pm

Re: #68 Nonplused on 07.18.19 at 1:43 am

#53 Ace Goodheart

“Trump is no more racist than the next guy. What he has managed to point out, brilliantly, is that the people who cry “racist” are just as racist and bigoted as those they accuse. We all need to take a look at ourselves.”

Trump told four congresswomen who do not agree with his targeted race driven treatment of asylum seekers to “Go home” and indicated their homes are “crime infested countries”.

Three of the four were born in the USA.

The thought behind his “tweet” appears to be that as these four members are not white and are female, they could not possibly be real “Americans”. They must be from somewhere else, somewhere terrible, somewhere “crime infested”.

The fourth, a US Citizen, is from Somalia. She left as a child and has lived her entire life in the USA.

Trump has zeroed in on this person and is now having his supporters chant that she should “go home”.

Would he do this to four white males, who did not agree with him?

It appears not. Trump has met a lot of white males who do not agree with him. He has never insinuated that they are not really Americans, or that they should “go home” or get out of the USA.

Why would he tell three American born female congresswomen to “go home”? Where would they go? They were born in the USA. That is their home.

This was a racist tweet. It was basically focused on telling US born people who don’t have white skin, that they don’t really belong in the USA.

#132 Marco on 07.18.19 at 2:18 pm

Well, we’ll see what Tim Hudak and Dog Ford think about this and we we’ll see it soon.

#133 Marco on 07.18.19 at 2:26 pm

I just wish to ask anybody, why Canadian media talk all the time about two detained Canadians in China and never mention a Canuck drug dealer on death row in that country?
Is he a Canadian is a Canadian is a Canadian… or something else? C’mon people. On death row. In China.

#134 Sail away on 07.18.19 at 2:34 pm

#131 Ace Goodheart on 07.18.19 at 2:03 pm

Why would he tell three American born female congresswomen to “go home”? Where would they go? They were born in the USA. That is their home.

This was a racist tweet. It was basically focused on telling US born people who don’t have white skin, that they don’t really belong in the USA.

————————————–

Trump didn’t actually tweet that, and in no place was race mentioned. Don’t let facts get in the way of your story, though.

Since when do you have to mention race to be a racist? That makes no sense. You are defending the indefensible here. Why bother? – Garth

#135 Jesse on 07.18.19 at 2:50 pm

#131 Ace Goodheart on 07.18.19 at 2:03 pm

The fourth, a US Citizen, is from Somalia. She left as a child and has lived her entire life in the USA.

Trump has zeroed in on this person and is now having his supporters chant that she should “go home”.

Would he do this to four white males, who did not agree with him?

It appears not. Trump has met a lot of white males who do not agree with him. He has never insinuated that they are not really Americans, or that they should “go home” or get out of the USA.

Why would he tell three American born female congresswomen to “go home”? Where would they go? They were born in the USA. That is their home.

This was a racist tweet. It was basically focused on telling US born people who don’t have white skin, that they don’t really belong in the USA.

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

Ilhan Omar and Trump are the same, they know what they’re doing, and they aren’t fooling anyone.

Is it obvious an election is coming up?

#136 n1tro on 07.18.19 at 2:51 pm

#131 Ace Goodheart on 07.18.19 at 2:03 pm
———–
I respect your posts but I wouldn’t go that far to say Trump is telling US born people who don’t have white skin that they don’t belong in the USA.

His words were un-presidential but with quotes coming from the other side like “some people did something” when talking about 911, how can anyone take these ladies seriously?

#137 Ronaldo on 07.18.19 at 2:57 pm

#127 Coastal Zapper on 07.18.19 at 9:46 am
#98 Ronaldo

Just curious, what percentage of the sales value was exluded from the tax free capital gains because of the carriage house and was it really worth the effort to build it?

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

0% of the sale was excluded, you are allowed a portion of your primary residence to be money earning, like a home office or renting a basement suite. Check with your accountant to find out the percentage.

The reason it was built was to provide a proper garage for my Camaro (Zapper). Turning just a garage into a Carriage House allowed me to make income to pay for the garage. Have a far more valuable addition when it came time to sell (cost to build $125,000, added value to property $275,000.). And yes for all those wondering, commercial insurance policy separate from my home policy, declared ALL income on my tax return. It was definitely worth it and would do it again.
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Zapper, the reason I asked was this.

https://www.squamishchief.com/opinion/letters/letter-consider-tax-implications-of-carriage-homes-1.2241091

https://manningelliott.com/blog/does-my-laneway-home-qualify-principal-residence-exemption-pre

#138 Ronaldo on 07.18.19 at 3:03 pm

Coastal Zapper, more on the subject on rental suites and carriage houses and the tax implications. It seems many people are not aware of the tax implications.

https://househuntvictoria.ca/2016/10/07/do-you-have-to-pay-capital-gains-tax-on-your-suite/

#139 Leo Trollstoy on 07.18.19 at 3:07 pm

DELETED

#140 James on 07.18.19 at 3:15 pm

#108 Emery Bogdan on 07.18.19 at 12:02 pm

https://www.breitbart.com/2020-election/2019/07/17/revealed-tom-steyers-firm-funded-coal-plants-australia-china-indonesia/

The guy who spent the second most to kill Canadian energy and fund Trudeau’s campaign against Alberta is Tom Steyer, a coal magnate from San Francisco. Just how stupid are we.
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Coal usage is down and it is a dead end fossil fuel. It should only be used when absolutely necessary. He is using his old influences and connections to make money in the coal industry. I’m not surprised but the US has had countless groups under the guise of Green clubs suing and protesting against Canada’s coal, oil and oil-sands industries for years pushing us further away from our own fossil fuel sales to others. Trudeau is playing both sides right now trying to hold on to his seat.
October can’t come quick enough. But then again this link is from Breithbart…………………..

#141 Leo Trollstoy on 07.18.19 at 3:17 pm

Now I know you anti-Trumpers are upset that current events have projected your inner racism, so here is an article that supports both your needs,

CNN interviewing white nationalist Richard Spencer bashing Donald Trump

See? Everything you guys want in a single link! Lol

https://m.huffingtonpost.ca/entry/cnn-richard-spencer-interview_n_5d2f22c2e4b0a873f644e174

#142 Sail Away on 07.18.19 at 3:37 pm

#134 Sail away on 07.18.19 at 2:34 pm
#131 Ace Goodheart on 07.18.19 at 2:03 pm

Why would he tell three American born female congresswomen to “go home”? Where would they go? They were born in the USA. That is their home.

This was a racist tweet. It was basically focused on telling US born people who don’t have white skin, that they don’t really belong in the USA.

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Trump didn’t actually tweet that, and in no place was race mentioned. Don’t let facts get in the way of your story, though.

Since when do you have to mention race to be a racist? That makes no sense. You are defending the indefensible here. Why bother? – Garth

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Not defending, but I do like accuracy.

Trump might be xenophobic, but racist? Not seeing evidence.

#143 Hogtown Harry on 07.18.19 at 4:08 pm

#85 IHCTD9 on 07.18.19 at 9:03 am

“Sorry, you’re still trying to convince me that peeps are selling their highly desirable mansions in highly desirable Brampton for hundreds of thousands under market value?”

Nothing of the sort. The gist of my argument which you don’t seem able to follow was simply that if detached homes were going for $700k (and I don’t believe they are) they would be a steal. I showed you a link to the kind of price a nice, newly detached home in Brampton goes for. About 400k above $700k. You don’t need to be Sigmund Freud to see that all your Toronto bashing is a veiled jealousy of our great city and its real estate values. Btw, the crappy, foul and smelly odour in Toronto must have been you on one of your infrequent trips through the city….:)

#144 Jacob Bernstein on 07.18.19 at 4:42 pm

I am tired of paying a whole bunch of taxes for losers they let into Canada. Liberals are mentally ill.

#145 Ernesto on 07.18.19 at 11:29 pm

I left Cuba because socialism destroyed a once flourishing country, like it did to Venezuela. People who embrace socialism don’t understand everyone will be poor under a socialist society where the government is the only capitalist, that steals all your options. I moved to America looking for freedom and don’t understand why anyone coming from Cuba would want socialism in any way, when someone is forced to move away from oppressive rules, laws, and way of life, that person should integrate in the new place, and should not try to make it the same he or she left behind.

#146 Yanniel on 07.19.19 at 2:10 pm

Gosh. I entered my previous comment in the wrong post. This was meant for https://www.greaterfool.ca/2019/07/18/unboring/. Sorry

#147 Greg Stanopolous on 07.19.19 at 4:26 pm

Ernesto, I am Greek and have a good idea of what you are mentioning in your post about socialism. It is this entitlement mentality that they think they are owed free stuff from the government. They think they are beating the system. People are getting so dumbed down now I have no idea what they think they will achieve.