Abnormal

Normal people don’t read this blog, as you know. Apparently they’re all at home making Halloween costumes for their children from discarded fast food wrappers and tree sap. The picture painted by a new survey is, well, chilling. The masses are sinking into a morass of debt and delusion.

Here’s what polling done for MNP found (hope you’re seated…)

  • Almost half (48%) of people have $200 or less left at the end of the month after paying bills and servicing debt.
  • 47% say they won’t be able to cover basic living costs over the next year without borrowing more. Yes, more.
  • Seven in ten families couldn’t handle a problem – like a busted furnace, divorce or job loss.
  • The average that families have left per month after bill payments is $557.

And they all have a vote. But that’s another story. The key point is that mortgage rates are incredibly cheap and borrowing costs in general are near generational lows. We’re in year 10 of an economic expansion. Unemployment is the lowest in decades. Wage growth was robust last year. And yet household finances are crumbling before our eyes with a savings rate under 1% and an unprecedented level of borrowing. The pile of personal debt, at $2.2 trillion, is bigger than the economy itself.

“Unexpected expenses can plague people regardless of age or income but they’re most devastating for people who already have a large amount of debt,” says the company. “Our research shows that most households do not have enough cash for inevitable life events like a car repair.”

So what happens when the inevitable slowdown arrives? When wages flatline, jobs are lost, asset values fall and the economy contracts?

This brings us to Wednesday.

The Bank of Canada is slated to reveal its latest policy in an announcement, a report and then a media conference. Rates will not be cut, Mr. Market says. Maybe that’ll happen a little in December, but more sometime in 2020. Central bankers clearly understand any reduction in the cost of money will just encourage and facilitate more borrowing. Already the bank identifies excessive household credit as a major risk to the economy, and it’s not hard to see why.

This debt trap has ensnared so many people and at the most dangerous point in the economic cycle. Meanwhile government finances continue to erode, especially in light of the recent election (which is looking more and more like the last one for Andrew Scheer…). The federal deficit will balloon again to almost $30 billion, and at a time where the recession is still a distant threat. We could be looking at a far worse number in a year or two, putting more pressure on the central bank to hold the cost of money low.

What does this mean to the folks who come here?

Well, bond prices will probably be drifting higher in the future as monetary policy eases and rates come down to add stimulus to the economy. But at the same time bonds get more valuable, GICs yields will fade. Mortgage rates may dip a bit more, however in a slowing environment the impact on real estate is likely to be muted.

Of course we also have a US presidential election in the mix, and the odds are high that Tariff Man will turn into Art-of-the-Deal Man, with the China trade war diminished and equity markets plumped as a result. Markets are still betting Trump vs Warren/Biden will yield a Republican winner.

So, in other words, the future is clear as mud. The business cycle dictates contraction. Politics suggests otherwise. Central bankers are being pre-emptive. And there’s a lot of monetary and fiscal stimulus about to be unleashed.

But this much is clear: people who need to borrow to survive, or end up each month with but a few hundred bucks, are gambling. They’re at risk. It’s a huge indictment of our culture, in which 70% of people own expensive assets but have financed them with a sea of debt. As stated a few paragraphs ago, all these families vote. And they vastly outnumber us.

The inevitable then: tax increases.

Given our experience thus far with the T2 government, the new political reality of its need for NDP support, coupled with unbridled spending promises in the election campaign, how could it be otherwise? As stated here yesterday, triggering capital gains while the inclusion rate is 50% (instead of 75%) – especially on real estate – might be a useful strategy. Also ensure you’ve used your available RRSP and TFSA room. Maybe it’s time to trade in non-deductible and high mutual fund MERs for low-cost ETFs or tax-deductible advisor fees. Split income within your household, using a spousal RRSP, sharing pensions or holding a joint non-registered account. Gift your adult kids money for their TFSAs (no attribution o you) and lend your less-taxed spouse money to invest. If you’re a small business dude, don’t just take cash in dividends or keep a whack of it in your corp. They’re coming for you.

This blog has provided a lot of tax-avoidance advice recently. Take it. Most people never will. They will so regret being ordinary.

 

156 comments ↓

#1 mitzerboyakaQueencitykidd on 10.28.19 at 4:32 pm

Looks like daddy’s boy doesn’t like tasting his own medicine at the ball game

#2 Dave on 10.28.19 at 4:34 pm

In Metro Vancouver – real estate pricing is dropping further. All the developers were hoping that the Conservatives would win the federal election and eliminate the Stress Test.

That didn’t happen, so now properties that have been sitting on the market for 1 to 2 years now are going to have to go with Plan B – keep dropping pricing and actually lose money on the deal!!!

#3 Paddy on 10.28.19 at 4:39 pm

So just rob from the rich (via taxes) and give to the poor….right guys???…….(sigh)

#4 marcus on 10.28.19 at 4:45 pm

“The beatings will continue until morale improves” – Revenue Canada

#5 Student on 10.28.19 at 4:52 pm

Garth, I always trust your honestly with questions posed. As a student of worldly economics, I don’t always know when theories are far fetched. So, a question for you: What do you make of Martin Armstrong and his predictions regarding the collapse of the bond market due to government debt held by the banking industry?

He’s wrong. – Garth

#6 SunShowers on 10.28.19 at 4:55 pm

So, 7 in 10 families can’t handle an emergency, and 50% can’t even survive without borrowing more?

And we’re supposed to feel sorry for KPMG clients? People named in the Panama Papers?

Ha.
Tax capital gains at 100% of the marginal rate. Bring on the Unexplained Wealth Orders.

#7 Yukon Elvis on 10.28.19 at 4:58 pm

Hard for most to practice tax avoidance when tax is deducted at source. And if u only have two hundred bucks left at the end of the month what do u invest in? May as well just go out and get bombed. And vote yourself some free stuff every chance u get.

#8 tccontrarian on 10.28.19 at 5:01 pm

“Normal people don’t read this blog, as you know.” GT

– – – –

Ok, people who read this blog are… not ‘normal’.

Now, how would you describe people who read this blog AND the comments section?

From an early age, I’ve never sought to be ‘normal’ – and I could never comprehend the desire to conform, as most of my schoolmates did.
Didn’t make life easy, but I got used to my ‘differentness’; but now, many years later, my adherence to (abnormal) contrarian investing principles has worked out rather well. Many bruises along the way, but ‘bruises’ are actually ‘lessons’ in a journey.

Now, given all the likelihood of Liberal/NDP collaboration in ‘stealing’ more of my money, I’m doing as much ‘tax-loss’ selling as possible in anticipation of higher taxes.

tcc

#9 Shawn on 10.28.19 at 5:10 pm

Unlike the US, the BOC overnight rate continues to live below the entire Canadian yield curve which itself is flat on the intermediate to long end and inverted at the short end.

This is bad.

#10 Boombust on 10.28.19 at 5:13 pm

The amount of debt here in the Greater Vancouver area is astounding; much of it of course, is tied to real estate purchases and/or servicing enormous mortgage payments.

However, prices across all housing categories continue to drop; unfortunately that will not be nearly enough to save BC from a wrenching post-housing boom recession.

#11 jess on 10.28.19 at 5:29 pm

October 24,2019
Press Contact:

Ashley Schapitl (202) 224-4515
Wyden Launches Investigation Into Halkbank Scandal
Wyden requests information about whether Secretary Mnuchin’s conversations with President Trump were about criminal investigation into Turkish state-owned bank

Washington, D.C. – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., today launched an investigation into the lapses in administration and financial oversight that resulted in the indictment of Halkbank, the Turkish bank facing criminal charges for a multi-billion dollar scheme to evade U.S. sanctions on Iran.Wyden is examining Secretary Mnuchin’s reported conversations with President Donald Trump, Turkish officials and Treasury Department officials about Halkbank, including whether he was directed by the president to intervene in the Southern District of New York’s investigation.

https://www.finance.senate.gov/ranking-members-news/wyden-launches-investigation-into-halkbank-scandal

——————
Did Trump Urge Top Aide to Help Giuliani Client Facing DOJ Charges?
https://www.lawfareblog.com/why-turkey-cares-about-trial-reza-zarrab
https://www.bloomberg.com/news/articles/2017-11-03/erdogan-links-alleged-in-new-u-s-documents-before-iran-trial
https://theintercept.com/2019/10/22/rudy-giuliani-southern-district-us-attorney/
https://www.bloomberg.com/news/articles/2019-10-09/trump-urged-top-aide-to-help-giuliani-client-facing-doj-charges

Secretary of State Rex Tillerson refused to interfere in case
2017 episode bears hallmarks of Trump approach to Ukraine call

Why Turkey Cares about the Trial of Reza Zarrab
By Amanda Sloat
Tuesday, November 21, 2017, 11:53 AM
https://www.brookings.edu/blog/order-from-chaos/2017/11/22/why-turkey-cares-about-the-trial-of-reza-zarrab/
https://www.cbc.ca/news/world/who-is-reza-zarrab-turkish-iranian-gold-trader-may-be-working-with-mueller-investigation-of-michael-flynn-1.4409930

#12 Basil Fawlty on 10.28.19 at 5:39 pm

It’s interesting that the Reformed-Conservatives seem to pride themselves in being fiscally prudent. However, Canada’s Federal Debt is near $1.2T and 50% of that was accumulated by Mulroney and Harper.

We are continually warned about the free spending NDP, yet they have never held power and likely never will, but doggonit be afraid okay.

#13 Long-Time Lurker on 10.28.19 at 5:43 pm

>The U.S. Fed keeps pumping money into the U.S. banks. Individuals are speculating why.
Keeping in the spirit of speculation, I offer my own:

-The U.S. Fed keeps pumping money into U.S. banks.
-U.S. banks are in trouble. They have a lack of liquidity.
-Why? Various reasons are expounded.
-My own pet theory is that Deutsche Bank is in danger of collapse and U.S. banks are propping it up. Their cash is flowing to DB.
-Why? Deutsche Bank is a systemically important bank due to it’s size and international scope. The collapse of Deutsche Bank would create a Lehman Brothers scenario.

The Lehman Brothers Collapse and How It’s Changed the Economy Today

The Lehman Brothers collapse will go down as one of the biggest financial failures in history – but how did it start, and what has the economy learned since then?

by Anne Sraders
Sep 12, 2018 4:52 PM EDT

In one of the most massive bankruptcies in United States history, the Lehman Brothers collapse marks its 10-year anniversary in September 2018. The firm’s demise is nearly synonymous with the 2008 financial crisis, and the economy is still feeling the repercussions of its destruction. But, how did one of the largest investment banks meet its demise in such a catastrophic fashion?…

…With the collapse of one of the world’s biggest and most successful banks, the markets took an unprecedented beating that is still, in some ways, being felt today…

…Is Deutsche Bank the New Lehman Brothers?
There have long been comparisons drawn between Deutsche Bank (DB – Get Report) and Lehman Brothers – especially in recent years. Deutsche has had some of the highest credit default swap (CDS) numbers in the past, hitting 235 basis points (the highest among investment banks) a couple years back in 2016. Additionally, the bank has failed its stress test multiple years, most recently in 2018, according to Reuters. And while several other historic factors have persistently drawn comparisons between the bank and Lehman, others suggest it may be more closely related to the Fannie Mae and Freddie Mac crisis.

Bloomberg reported this year that Deutsche currently holds $145 billion of “total loss absorbing capital,” or TLAC, which is decreasing in value and may eventually cause the bank’s downfall. But, according to Bloomberg, the government may chose to take over the bank (much like the U.S. government did with Fannie Mae and Freddie Mac during the financial crisis).

“Deutsche Bank unlike Lehman will not be allowed to fail,” Alastair Winter, chief economist at Daniel Stewart wrote to CNBC in 2016. “It is also likely that they are much more aware of their problems even if they are unable or unwilling to quantify them properly.”

While crisis is merely speculated for Deutsche, the cautionary tale of Lehman Brothers may still be relevant – as for economies worldwide….

https://www.thestreet.com/markets/bankruptcy/lehman-brothers-collapse-14703153

#14 Greenbelt Developments Inc. on 10.28.19 at 5:44 pm

DELETED

#15 Long-Time Lurker on 10.28.19 at 5:45 pm

>A banking crisis looms?

Deutsche Bank Plans About Half of 18,000 Job Cuts in Germany

By Steven Arons

October 8, 2019, 2:37 AM PDT Updated on October 8, 2019, 3:47 AM PDT

Germany will see ‘a good share’ of cuts, CEO Sewing has said

London said to be hit disproportionately hard, U.S. less so

Deutsche Bank AG intends to make about half its planned 18,000 job cuts in Germany as it relies on savings at the retail units to lower costs, according to people familiar with the matter.

The lender employed about 41,700 people in its home market at the end of last year, out of a total of 91,700. Outside Germany, London will also be hit especially hard, partly because of Brexit, while the U.S. may see a lower share of front-office cuts once the bank has exited its equities trading business, the people said, asking not to be identified because talks are ongoing…

…Deutsche Bank is just one of many large lenders that have recently announced staff reductions, though its effort is the biggest by far. HSBC Holdings Plc is seeking to shed as many as 10,000 roles, largely by selling its retail operations in France, a person familiar with the matter said on Monday. Taken together, European lenders have officially announced plans for more than 50,000 job cuts year to date, according to data compiled by Bloomberg.

Past headcount reductions at Deutsche Bank have frequently included selling entire units, as the bank did with its retail operations in Poland and Portugal. But the latest plan doesn’t take into account any unannounced sales, a person familiar with the matter said….

https://www.bloomberg.com/news/articles/2019-10-08/deutsche-bank-plans-about-half-its-18-000-job-cuts-in-germany?srnd=economics-vp

#16 FreeBird on 10.28.19 at 5:56 pm

Be careful when you follow the masses. Sometimes the M silent. -Unknown

#17 Sebee on 10.28.19 at 6:01 pm

No incentive to save money.
All policy coordinated for people to borrow more, have to pay unreasonable ratios of earnings to have shelter, etc.

This isn’t chilling Garth, this is coordinated and planned and should be expected.

But first, let us undermine the educational system, numb the population with weed and buck-a-beer. Etc, etc.

#18 MF on 10.28.19 at 6:01 pm

Meh..

Never say never (right Billybob?) but we’ve read about this topic on this pathetic blog for the past 4 years and yet nothing has happened.

Why would T2 touch something that his own fortune is tied to? Plus, this time there is a very threat that he can fracture the country with his “progressive” policies so he will most likely tread lightly.

….

Also, with regards to taxes, a big part of the reason why 600 square foot condos cost $600,000.00 in the GTA or property is traded like Upper Deck trading cards is because of the primary residence exemption. Get rid of it and watch prices fall.

MF

#19 Jay on 10.28.19 at 6:05 pm

The level of indebtedness and financial illiteracy in this country is scary. I’ve seen it with my own eyes, in my own family. Kids in their early 30’s with young family, up to their eyeballs in debt, no savings, no emergency fund, both driving new vehicles and renting. I’m not even sure if they realize how precarious their situation has become. I can’t figure out if it’s obliviousness or entitlement, or both. To them, living paycheque to paycheque is completely normal. No matter how much I try to explain to them how dire their situation is, or what they need to do to get out of the hole they’ve dug for themselves, they don’t seem to have any interest in adjusting their lifestyle. Every suggestion I offer (get rid of a vehicle, rent out spare room, get job closer to home etc.) is met with resistance or excuses of why they can’t. Zero interest in making the sacrifices needed. Scary indeed!

#20 MF on 10.28.19 at 6:06 pm

#12 Basil Fawlty on 10.28.19 at 5:39 pm

Ever heard of a little event known as the great recession?
You know, about ten years ago when the world economy as we know it almost collapsed and we would have all starved?

Yeah that.

That’s why Harper spent money and accumulated debt. To allow us to eat.

What’s T2 spending on?

MF

#21 Debtslavecreator on 10.28.19 at 6:07 pm

All those angry at their POOR financial choices are of course looking to blame all except themselves
The point of increasing capital gains inclusion rates and eventually a lifetime limit on the primary residence capital gains is to tax and destroy the “middle class”
The biggest supporters of explosive tax increases on successful people are mostly those who don’t pay taxes after netting out the government payments or benefits recd
You left wing people will get what you’re asking for and the majority of you will deserve all that’s coming your way over the next 4 years
Radical monetary policy breeds radical economic results which breeds radical politics
We are here, as are almost all developed economies, due to extreme monetary policies that have artificially mis priced credit and inflated our shelter
The goal of your crown corporation BofC is to help tax away the disposable income of the middle class by subsidizing credit
The result is the average Joe paying very real contractual payments such as mortgages, property taxes and insurances based on completely fictitious nominal asset prices goods by the massive flood of mis-priced credit and toward the terminal stage of collapse the massive money printing that is already started

When the final stage completes anytime in the next 5 years it could and likely will end with a spectacular flash crash in debt, stocks and RE

But yes between now and then don’t be surprised at Dow 35-40 k and maybe one last RE spike upward

When said and done the vast majority of regular folk will have nothing left to show for a lifetime of payments after taxes, fees, interest and insurances have been paid at incredibly inflated costs due the imaginary asset values created by the greatest debt bubble in history
Study your history>Argentina, Russia , Iceland are the case studies most likely to resemble our next 5 years

#22 hohum on 10.28.19 at 6:07 pm

DELETED

#23 MF on 10.28.19 at 6:17 pm

This whole thing is so rich.

How many times do we hear about some report saying Canadians debt levels are too high?

Every week? Every few days?

Even the Bank of Canada warns against debt levels ad nauseum. Then, knowing full well the overwhelming majority of the debt is used for real estate so people can put a roof over their head, the BoC decides to LOWER the interest rate to encourage more debt.

How smart is that move?

MF

#24 From where I look ... on 10.28.19 at 6:18 pm

out my window and across the ocean in 604 … it all looks perfect on a beautiful day like today. All my neighbors seem happy … who would guess the debt is where it is? I know I’m not blind so guess I just can not see …

#25 the ryguy on 10.28.19 at 6:19 pm

If you’re a small business dude, don’t just take cash in dividends or keep a whack of it in your corp.
———————————————————–

Regarding the last part…what should one do? Say a single guy with a big chunk of cash in his corp?

#26 ronh on 10.28.19 at 6:27 pm

Garth, #14 should it be deleted?

Yes. Missed it. – Garth

#27 CJohnC on 10.28.19 at 6:35 pm

Surprised that #14 Greenbelt Developments got by you Garth. Preaching violence towards T2 and referring to backward savages. A little White Supremacist to me

I try to screen all comments and links and also sometimes give people the benefit of the doubt. Obviously an error. – Garth

#28 Re-Cowtown on 10.28.19 at 6:35 pm

Funny how the federal deficit is almost exactly the same as the amount of annual oilpatch GDP destroyed by T2.

In other words, if T2 had left the oilpatch alone the private sector would have already bailed out his skinny non-binary racially-fluid keester. But he didn’t, so now all Canadians get rewarded with much higher taxes. Well played, ROC, an own-goal. Impressive!

#29 IHCTD9 on 10.28.19 at 6:37 pm

#116 Ponzius Pilatus on 10.28.19 at 11:29 am

IHTC
Here’s the deal:
Attach a copy of your Insurance bill on your next post.
So can see and weep. Simple.
BTW, did you watch Mountain Men?
———

Nah, I’d rather keep bringing it up, it’s a great example of how letting government run things ends up Costing 10X more than it should. Same thing the Libs did to electricity prices here in Ontario. Maybe the BC NDP should take a page from the Ontario Liberals playbook and form a public Corp to take on billions worth of debt so they can subsidize the auto insurance rates.

Have not watched MM yet. All I am interested in is that wood powered truck. I’ll probably just see what’s on YouTube and pick through it for the truck stuff. I’ll check Netflix too.

#30 not 1st on 10.28.19 at 6:39 pm

We should vote by economic contribution. 1 vote for every $10k of income. If you are a net taker from the country, you get zero votes.

And by province too. Say you contribute all the money to equalization, then you get 3 times the seats. If you are a deadbeat province, riding debt into oblivion or don’t want to exploit your own resources then no seats for you.

A person can dream.

#31 Randy on 10.28.19 at 6:44 pm

Who votes Liberal-NDP-Green…?…
7/10 Millennials don’t want FREEDOM…they want to be taken care of….Back into the basement you big babies….I blame your parents…..your teachers and our useless left-wing Media.

#32 IHCTD9 on 10.28.19 at 6:50 pm

#19 Jay on 10.28.19 at 6:05 pm
The level of indebtedness and financial illiteracy in this country is scary…
——-

I’ve watched a couple dudes go bust. Same thing as you describe, lots of fancy stuff, all on credit. When shtf happens to these folks (job loss in these two cases), they just sell it all, pay back what they can, consolidate their remaining debts, and start over.

One dude I used to work with went about 5 years just barely keeping his nose above the waterline until he finally nailed down a decent paying job again. Don’t know if he’s learned anything, I would guess not (buddy loved his “things”).

It’s a good way to go nowhere fast. Typical of the “how much per month?” crowd.

#33 Chaddywack on 10.28.19 at 6:53 pm

Will T2 will touch RRSPs and TFSAs next to scoop even more revenue for his pet projects?

#34 Shawn Allen on 10.28.19 at 6:53 pm

Capital Gains and Capital Loss inclusion rate

#126 kommykim on 10.28.19 at 1:56 pm responded:

RE:#8 Shawn Allen on 10.27.19 at 4:30 pm
Capital Gains inclusion rate

If I recall correctly there was a time when the rate was calculated as 0% for gains prior to “Valuation Day” circa 1971, then I believe 50% for gains up to another date (1990) and 75% for gains past that date.

***********************
I might be totally wrong on that.

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

I think what you are referring to is how to use capital losses carried forward from those years when the inclusion rate was different. I believe the capital gains you must pay are only triggered when you sell and are payable at the current rate at the time of sale.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/you-calculate-your-capital-gain-loss/inclusion-rates-previous-years.html

******************************
Thank you. Yes, that would be why I remembered wrong. I did not realize the capital losses were not treated symmetric to capital gain when it comes to inclusion rate.

Our income tax system is far too complicated.

#35 the Jaguar on 10.28.19 at 6:55 pm

One might hope that participants in a poll like the one done by MNP would result in those same people seeing their debt bloated faces reflected in the mirror and do something about it. Downsize, sell assets such excess vehicles and take public transit until debt is paid down, stop making emotional based expenditures and save for a rainy day and their future. Not likely. Not many households have only one vehicle nor are they willing to try that experiment despite moaning about the need for fossil fuel reduction. They can’t downsize because they need that double car garage and the higher square footage to store all the consumer goods they got suckered into buying through societal pressure and the advertising media. Their self esteem is dependent on keeping the whole facade going. Outward appearances matter more than living up to their own ideals. Or maybe they just don’t have any.
We get the government we deserve and we get the lives we deserve if we let others make decisions.
Hard to feel sorry for people who walked into high levels of debt and make no attempt to get untangled from it. There is help for those who seek it and are willing to make difficult but necessary choices.

#36 Ian from Oshawa on 10.28.19 at 6:57 pm

This looks/sounds like a disaster waiting to happen. I mean … crushing debt and people barely able to service it! What are they going to do if they lose their job? Incur a major, unexpected expense?

God help us if the rates ARE increased. I think it might be a cascade of events that pushes us into a dark time. Perhaps the price of gas goes up, rates increase slightly, or banks call a loan or two. Everyone needs to unload their $900,000 mortgage. Trouble is… the house is now worth $700,000. What are they going to do?

Garth, perhaps you could tell us what the “canary in a coal mine” is? You know, the indicator that the house of cards is about to fall. I wonder what goes first… unemployment increases? Would gas prices do it?

Fill us in, oh wise seer! Tell us what usually precedes a big economic belly-flop. I’m very curious!

Your fan in the thriving metropolis of Oshawa!

#37 Prairieboy on 10.28.19 at 6:58 pm

Saying most people only have a couple hundred bucks left each month only confirms the dismal savings rate. I could easily put myself in the same situation by just spending more monthly instead of saving. Doesn’t tell you anything about their earnings. Not being able to handle any unexpected expenses is the same.

It’d be interesting to know how many households have an income of 100k+ and are in that situation. Ok ok, say 200k in Van or To…

#38 Bad Hombre and the Impeachment Posse on 10.28.19 at 7:09 pm

I just want to register my objection to your titling this abnormal and using a picture of a Tibetan mastiff. He/she isn’t abnormal, good puppy. You could have used any current politician’s picture and been totally accurate.

#39 Steven Rowlandson on 10.28.19 at 7:13 pm

Hey Garth you seem to pay attention to what Benny has to say.. There seems to be a contradiction though. Benny is of the opinion that wage raises are affordable and are good for the economy and you seem to think it is inflationary and not such a great idea. Are you afraid of something? Higher interest rates on government debt? Loss of class distinction? Higher rates on mortgages? Improved ability to pay down debt and pay taxes? No need to fear Garth. The dollar is debt and it is only a number. Fear leads to lying and lying leads to murder and other crimes… That is why Jesus the son of God said ,” fear not”.

https://www.bnnbloomberg.ca/the-issue-is-income-cibc-s-tal-shrugs-off-canadian-debt-fears-points-to-wage-woes-1.1338900

#40 Steven Rowlandson on 10.28.19 at 7:18 pm

#12 Basil Fawlty What are you including in that 1.2 trillion debt number?

https://www.debtclock.ca/
Scary isn’t it?

#41 Sebee on 10.28.19 at 7:19 pm

Meanwhile, did you guys read about the Google Quantum Supremacy? A 54 qubit (53 working) quantum computer did in 200 seconds what the most powerful supercomputer Summit needs 10,000 years to crunch.

Don’t worry, this will be used to improve your Google search results only and never to force factor encrypted systems. It won’t be used to undermine trading systems or any other algorithms for sure. Ever.

#42 Dave on 10.28.19 at 7:19 pm

If no one has any money at the end of the month then why is housing in Canada so ridiculously expensive and how can this be sustained? These people who can’t save don’t all have miliion dollar mortgages

#43 Paul on 10.28.19 at 7:19 pm

Also, with regards to taxes, a big part of the reason why 600 square foot condos cost $600,000.00 in the GTA or property is traded like Upper Deck trading cards is because of the primary residence exemption. Get rid of it and watch prices fall.

MF
————————————————————————————————
YES, absolutely tax everything don’t let a dollar be spared. Just how does anyone get ahead oh ya RRSP, tax free saving account you can’t make $500 interest on a bank deposit without tax. Plus what happens when the 70% that own start writing off their mortgage expenses ect. And if prices drop say 150k is that a deduction?

#44 crowdedelevatorfartz on 10.28.19 at 7:19 pm

@#6 Sunstroke
“So, 7 in 10 families can’t handle an emergency, and 50% can’t even survive without borrowing more?”
+++++

Ahhh yes.
You immediately assume that anyone with “investments” is rich and “deserves” punitive taxes.

Ok.
I’ll bite and assume that families that cant handle a financial “emergency” that costs $200 or more are stupid, lazy, financial illiterates that need a new $1000 Iphone on layaway avery two years because “its got 3 cameras on the back…..”….

Fools and their money are soon parted.

Fools that mortgage million dollar houses at record low interest rates…..are greaterfools.

Just dont blame investors for moving their money elsewhere when the tax hammer threatens to come down.

#45 Armpit on 10.28.19 at 7:21 pm

Garth… Who are you really referring ???

“Almost half (48%) of people have $200 or less left at the end of the month after paying bills and servicing debt.” – so does the Government

“47% say they won’t be able to cover basic living costs over the next year without borrowing more. ” – so does the Government

“Seven in ten families couldn’t handle a problem – like a busted furnace, divorce or job loss.” So does the Government

“The average that families have left per month after bill payments is $557.” – Better than the Government.

Good Luck Everyone…

#46 yvr_lurker on 10.28.19 at 7:25 pm

#30 Not 1st
We should vote by economic contribution. 1 vote for every $10k of income. If you are a net taker from the country, you get zero votes.

And by province too. Say you contribute all the money to equalization, then you get 3 times the seats. If you are a deadbeat province, riding debt into oblivion or don’t want to exploit your own resources then no seats for you.

A person can dream.

——

With the top 100 CEOs in the country averaging around 1Million per year, your scheme would give this select group

10,000 votes

https://www.canadianbusiness.com/lists-and-rankings/richest-people/canada-100-highest-paid-ceos/

And you are worried that true democracy is on the decline in Canada as it is being controlled by people with left-wing agendas? Give your head a shake. You’re completely nuts.

#47 Dave on 10.28.19 at 7:30 pm

Re #28 The price of oil is what screwed Alberta, not Trudeau. Despite shipping record amounts of oil to the US under the Cons watch, they managed to end up with a deficit for 14 years! Astounding…

#48 Flop... on 10.28.19 at 7:31 pm

No Millennial has ever applied for a job at the second company on this list…

M45BC

“Visualize the Top 25 Private Cloud Companies in the World.

Cloud computing is changing the economy and transforming the way millions of people work, and private companies with multibillion dollar valuations are at the forefront of the disruption. Our latest visualization reveals the top 25 private cloud companies.

Stripe takes the top spot in the Forbes Cloud 100 ranking with $785M in private funding and 2,000 employees.

Illumio is the smallest company in the top 25 with only 325 employees.

UiPath achieved the most private equity funding at $1.1B, followed by Snowflake at $920M.

MailChimp is the only company in our visualization that has never taken any money from outside investors.
The data comes from the Forbes Cloud 100, recognizing the best private cloud companies in the world. The ranking takes into account growth, sales, valuation and culture, including both large and small companies. The figures were accurate as of early September, 2019. In the weeks since then, Stripe raised another $250M, pushing its total raised well over $1B. We plotted the top 25 according to Forbes, showing their funding and colored it according to the number of employees who work there.

Top 10 Cloud Companies & Their Funding Levels

1. Stripe: $785M
2. Snowflake: $920M
3. UiPath: $1.1B
4. HashiCorp: $174M
5. Datadog: $148M
6. Procore: $250M
7. Tanium: $800M
8. InVision: $350M
9. Rubrik: $553M
10. Confluent: $206M

https://howmuch.net/articles/best-private-cloud-companies-2019

#49 Remembrancer on 10.28.19 at 7:32 pm

#22 hohum on 10.28.19 at 6:07 pm
#14 Greenbelt Developments Inc. on 10.28.19 at 5:44 pm

-__________________________________

hey garth I think a deplorable slipped past your guard dogs.
——————————–
Small point of etiquette: re-quoting the deplorable in your post and thereby letting the message live on/be amplified is a problem as well…

#50 crowdedelevatorfartz on 10.28.19 at 7:32 pm

@#32 IHCTD9
“I’ve watched a couple dudes go bust.”
****

yep.
i work with one guy, mid 50’s, who makes 100k /year and his wife pulls in about 70k.
Always , always, always …..Flat busted broke.

Another coworker ( 66years old, has CPP, Old Age , Private Pension AND he still works) pulls in about 80k a year with his job plus pension .
Called me up the other day to loan him money for a tow.
$140…. His truck ignition is pooched.

Another co worker uses his credit cards like a bank machine to “cover” when he’s broke.
He’s always behind his bills.

Friends in a similar downward spiral.
Mid 50’s, good paying jobs.
Huge debts, zero savings, no pensions, but they “need” a vacation on Visa…….

And from what I’ve seen their kids are “monkey see monkey do”.
One guy spent the last 6 months in Haida Gwaii working.
Saved 40k ( free food, lodgings, etc).
1st thing he did when he got to town. 3 days in the tattoo parlour (6k) and 3 nights in the bar with his “friends”…..he’s 45 and divorced. penniless. homeless….but “rich”…..

There’s lots of financial idiots out there.
Thats why I come here for some sound advice and confirmation I’m on the right track…….

Those are but several reasons I shall vacate this city in a few more years when I reach my retirement investment goals.

#51 Greg Franklin on 10.28.19 at 7:36 pm

If you want to turn Canada in to a second and third world country Bill Morneau, Justin Trudeau then go ahead make a deal with NDP and Singh.

Garth, it looks more and more reasons to stop going to work or run a business when thieves called Liberal, NDP, Green party and more socialists coming down the pike.

I would rather the Liberals vote with conservatives or Bloc Quebecois than with NDP, Green Party. If they have some sense that is what they will do.

#52 crowdedelevatorfartz on 10.28.19 at 7:39 pm

@#20 MF
“What’s T2 spending on?”
++++
Rainbow sidewalks and Pink T-shirts.

Invest in dye.

#53 Frank Lopez on 10.28.19 at 7:53 pm

When are we going to start taxing politician’s pension? Just like jean Chretien’s which is currently $234,325 a year.

His pension is $175,150 and the income is taxable, just like everyone else. – Garth

#54 TurnerNation on 10.28.19 at 7:57 pm

Outta the way you lithe Millennials the Boomers got a new ride:

Boomerbuggy X Mobility Scooter

60V 40AH SLA Battery/Lithium Battery (Xi, Xs)
Built in Heating System
Air Conditioning
Solar Panel Charging (Xs)
Hydraulic Disc Brakes
https://www.ebikeuniverse.com/default/boomerbuggy-x.html?

#55 akashic record on 10.28.19 at 8:04 pm

There is no borrowing without lenders.

Let’s talk about lenders. Do they vote? Will they hold the bag?

#56 Keyboard Smasher on 10.28.19 at 8:05 pm

DELETED

#57 Linda on 10.28.19 at 8:14 pm

I do believe that is a Tibetan Mastiff in the blog dog photo of today. So fluffy!

Today’s post: perspective is everything. $200 at the end of the month or an average of $557 after all bills have been paid. Back in the day when we were possessed of a mortgage we had – wait for it – $100 left to blow on whatever we wanted at the end of each month after all bills were paid. Mortgage interest was in the 16% range. As per today’s blog we should have been committed as a fiscal suicide risk. Yes, a job loss would have nuked us till we glowed. The inevitable unexpected expenses did occur – usually just as we got a tax refund, salary increase or other small sum of spare cash. Stressful for sure, but eventually that big pile of mortgage debt disappeared & most of the money we’d been pouring into debt repayment began to go into retirement savings instead. My point being, though the numbers are not exactly uplifting if most of today’s debt is mortgage related, those in fiscal penury today may well be fiscally healthy in a decade or two. One can but hope.

Andrew Who? The Cons went from Mr. Control Freak to Mr. Invisible. Their choice so any complaining about his leadership is a clear illustration of reaping what you sow. I get they wanted to breathe the air of freedom after years of not being able to move without permission, but surely they must have noticed that Mr. Scheer wasn’t registering on the electorate radar prior to the election itself.

As for the upcoming electoral circus in our neighbor to the south, will ‘the Donald’ be able to beat the impeachment process & win a second term to boot? I gather that Republicans would be more than happy if he became ‘Mr. Invisible’, especially if that ensured they won the next election. I’m also wondering about what might happen to Ms. Meng if Mr. Trump is impeached. If her legal team didn’t appeal the extradition on the grounds that a convicted felon ordered it I’d be very surprised. I realize that is a simplistic take on a complicated issue but talk about a ‘get out of jail free’ card.

#58 domain on 10.28.19 at 8:20 pm

Canada will continue to get poorer as a whole as the government redirects our wealth/capital to the ‘poor’ to consume.

Eating the seeds instead of the crops is always a horrible strategy.

#59 Basil Fawlty on 10.28.19 at 8:26 pm

#40 S. Rowlandson

The national debt number came from a Google search that shows the cumulative increase in debt by year and the party in power.

#60 Ty Currie on 10.28.19 at 8:30 pm

#17 Sebee

Bang on. These politicians aren’t stoopid. Rather, simply good at following a script. Big plans in the works for Canada, wait and see, but not necessarily to the average Joe’s benefit…

Real estate? Van City still seems a terrific place to clean a few silver briefcases’ worth, BC for that matter. Don’t believe all the hype on this blog. Garth’s got it right about investing but his take on Canadian real estate is a fantasy. Nowhere but up will she go.

It appears the best financial plan for any Canadian, esp in TO and VanCity, is to git some real estate. Up she goes… to infinity. Too big to fail now.

#61 domain on 10.28.19 at 8:32 pm

Garth. Like #25 asked, what should one do if they have a large stack of cash in a corp?

Personally I am taking a large salary, but the retained earnings from years past still slosh-around. I don’t have any plans for that capital in this environment, and I would rather get it out.

Any quick tips Gartho?

#62 SunDays on 10.28.19 at 8:35 pm

#5 Student on 10.28.19 at 4:52 pm
What do you make of Martin Armstrong and his predictions regarding the collapse of the bond market due to government debt held by the banking industry?

He’s wrong. – Garth

——————–

The BoC seems to support Mr. Armstrong’s view. Public debt defaults are coming. Just a matter of time.

“…Since 1960, 146 governments have defaulted on their obligations—well over half the current
universe of 214 sovereigns…. Looking ahead, we conclude that defaults are likely to pick up again over the next decade, given
growing public debt burdens in many advanced and emerging-market countries.”
https://www.bankofcanada.ca/wp-content/uploads/2019/09/swp2019-39.pdf

The bond market is fine. Worry about yourself. – Garth

#63 crowdedelevatorfartz on 10.28.19 at 8:52 pm

@#57 Linda
“As for the upcoming electoral circus in our neighbor to the south, will ‘the Donald’ be able to beat the impeachment process & win a second term to boot?”
++++

Well.
If the World Series crowd at game 5 are any indication….. President Trump may be a one term wonder…..

https://www.cbsnews.com/video/world-series-fans-chant-lock-him-up-at-trump/

The way that crowd acted was…….simply deplorable.

#64 VicPaul on 10.28.19 at 8:52 pm

#27 CJohnC on 10.28.19 at 6:35 pm

A little White Supremacist to me
**********

Nowhere did he (she?) reveal their racial origin. You just like spewing racial epithets do you?
You know what people call people like you, right?

#65 joblo on 10.28.19 at 8:54 pm

Pierre Poilievre for the win.
Woulda crushed T2.

#66 Duffy on 10.28.19 at 8:54 pm

Over the years I’ve noticed a slow decline in young peoples “fixit” skills regarding electrical, framing, basic carpentry, gyprock, plumbing and auto repair.

But thanks to you tube some of these skills are being renewed again to varying degrees of success. I’m sure there is blood on a lot of new tools. Knowledge can be painful, check your friends hands, the ones with white scar lines know things, the ones with red scar lines or bandages are still learning.

The people you meet without scars are either wealthy, lazy or own a pair of gloves.

Doing home repairs yourself can save huge dollars and can be self rewarding. Start out on a small project, the sky is the limit.

#67 Re-Cowtown on 10.28.19 at 9:03 pm

#47 Dave on 10.28.19 at 7:30 pm
Re #28 The price of oil is what screwed Alberta, not Trudeau. Despite shipping record amounts of oil to the US under the Cons watch, they managed to end up with a deficit for 14 years! Astounding…

++++++++++++++++++++++++++++++++++
I call B.S.

Harper had to deal with the Great Recession. Trudeau is merely piddling away the opportunities that others handed him. As the old saying goes “It’s very seldom that kiddie is smarter than daddy.” T2 proves that statement in spades.

Oil companies invested billions of dollars on the government promise that a pipeline would be built by the time their projects came on line. Trudeau piddled and dithered and played one part of Canada off against the other until the investors got pissed off and left the building. And he’s still doing it.

Capital is mobile. It moves to the country that offers the best deal or at least one that won’t screw it over. Break your promises and investment capital leaves. Kind of like if your boss repeatedly misses payroll. Eventually you get the hint and move your capital (in this case your labour IS your capital) elsewhere.

Besides, overseas oil markets pay more than US markets. They price crude in Brent pricing, which is usually $10-15 higher than WTI. This partially helps explain why gasoline is so expensive in Vancouver; the BC’ers are buying Alaskan crude that is priced at world Brent price rather than slumming it and getting all their oil from Alberta at cheaper WTI pricing. Waste of $$, but hey, that’s BC for you.

And BTW, 400,00 barrels/day of Alaska crude are tankered off the BC coast and travel within eye-shot of the BC legislature everyday. People are so ill-informed that they have no clue where their energy comes from. Or maybe BC’ers should hire Greta to tell Trump “How dare you ship crude off BC’s coast….how dare you!!!!”

#68 Nonplused on 10.28.19 at 9:06 pm

What I wonder is with so many families just keeping their head above water or indeed slowly sinking beneath the waves, just who is it that our illustrious leaders think they are going to be able to raise taxes on? Taxes are already too damn high and so is the cost of living. “Tax the rich!” goes the battle call but there aren’t very many of them and they don’t have near enough money to make a difference.

Plus the rich don’t actually pay their taxes, you do. They don’t have much money, they have assets. What money does flow through their hands comes in the form of profits on their businesses. In the end of the day all costs including taxes must be passed on to the price consumers pay for things. So as the tax rate goes up, whoever it is on, so goes the price of a Slurpee or a car repair or a new furnace. Plus that money is also where they get the funds to expand and hire more people. So any tax increase leads to higher prices and slower growth, no matter where in the economy it is levied.

As I have often argued here before, there is only one tax rate, and we all pay it through the price of goods and services even if we aren’t the point at which the government levies the tax.

If you aren’t convinced, think through these examples: When Microsoft or Bill Gates pays their taxes, do you think they use a magic printing press in the basement to come up with the money, or embed the cost in the price of the xBox you want to buy your kid for Christmas? When your plumber pays his income tax, do you think a stork drops the money from the sky and it hits him on the head, or that he embeds it in his invoice and hourly rate? When 7-11 pays their tax, do you think they raid the penny plates (well, nickle plates now) and charity cans or embed it in the price of a Slurpee?

The whole point of taxing the rich is to reduce the number of points in the economy the government has to audit. That’s all it does. Plus taxes are more palatable to the pleebs if they don’t see it because it’s embedded in price. They blame the greedy shareholders of McDonald’s for charging too much for a burger. If they could see how much of the cost of that burger is embedded tax, there would be a revolt the next morning.

The new carbon taxes are another case of the government trying to get blood out of a stone. Supposedly they will reduce emissions, but I fail to see how. Is anyone going to stop heating their house in the winter because of them, or are they just going to have to borrow more? Aren’t we all already converting to 95% efficiency furnaces as the old ones break down? Are we going to stop buying ice-cream because the cost to keep it refrigerated just went up? (Probably not because the cost of everything else we eat will be similarly affected by the carbon tax. Unless you grew it in the garden, most of the cost of food is a reflection of how much energy it took to get it to the grocery store. The other part is labor.)

And as I’ve argued many times in the past, a carbon tax is really just a rise in the HST by another name. Only it’s regressive, because the rich and poor pay it alike. The rich may pay more of it per person, but for the poor it is a much larger portion of their incomes.

But as we’ve seen in this post, with most people barely getting by, now is no time to be doubling the HST. People don’t have the money to pay it. Does that mean we don’t have the money to save the planet and fund socialism? Yes Virginia, I am afraid it does.

As many studies have shown, the effective tax rate cannot go above 50% without collapsing the economy, and that number has proved reliable going back to the days of serfdom. We’re already there, and have been more or less for a long time. Trudeau can dream he can get it higher by targeting the right people, but it won’t work. The proof is in posts like this one. Garth is telling people to sell their assets before the capital gains tax goes up. But sell to who? Everyone smart enough to have enough money to buy them knows the tax rate is going up too. What about people smart enough to become doctors, which we need? The effective tax rate they will have to pay must be calculated into things before they decide to embark on 9 years of schooling and training and 100’s of thousands of dollars in debt before they start making money to pay that debt off after tax.

You just cannot tax your way to prosperity any more than you can borrow your way to prosperity. It looks good for a while, sort of like how being drunk feels good for a while, but sooner or later comes the hangover.

#69 IHCTD9 on 10.28.19 at 9:14 pm

#50 crowdedelevatorfartz on 10.28.19 at 7:32 pm

…Those are but several reasons I shall vacate this city in a few more years when I reach my retirement investment goals.
——

I got a few buds who think just like you! They moved to the GTA for work right after post secondary. The GTA was still pretty decent in the early 90’s, but these guys are now counting the days till retirement. Can’t stand living there anymore, it’s nothing like it used to be.

One of them is planning on leaving the country altogether. All of them will cash in huge on their SFD’s as they all paid less than 300K. I hope they can get out before T2 or the next one decides to tax the crap out of the capital gain.

#70 Doug on 10.28.19 at 9:27 pm

“If you’re a small business dude, don’t just take cash in dividends or keep a whack of it in your corp. They’re coming for you…..”

Garth what should we do?

Soon. – Garth

#71 CJohnC on 10.28.19 at 9:43 pm

#64 VicPaul.

Your right. Let’s say a little Alt-Right then.

And okay, I’ll bite. What do the infamous “they” call people like me?

#72 tccontrarian on 10.28.19 at 10:02 pm

As a renter in YVR (since late 2015), waiting for the inevitable collapse in RE prices, it will come as a blessing if T2 and gang were to even hint at taxing primary residences. It would undoubtedly trigger a stampede of ‘new’ sellers in order to beat the effective date (the date of the new budget).
Likely to be grandfathered in, but it would certainly shift sentiment in how people approached RE investment in general.
tcc

#73 BC Renovator on 10.28.19 at 10:09 pm

If you’re a small business dude, don’t just take cash in dividends or keep a whack of it in your corp. They’re coming for you.

________
Garth, Dude! Thats me!

What to do with the cash then? Open a Corporate Investing account has been on my mind, but I am already heavily invested in these markets….

Open an account in the Caymans? lol Or….

#74 IHCTD9 on 10.28.19 at 10:11 pm

#57 Linda on 10.28.19 at 8:14 pm

Back in the day when we were possessed of a mortgage we had – wait for it – $100 left to blow on whatever we wanted at the end of each month after all bills were paid. Mortgage interest was in the 16% range
——

You likely worked thru those insane 80’s rates, and survived. After that, the rates dropped and blew wind into your sails.

Compare that to now with these 10X income mortgages at rock bottom rates. They can’t go much lower, folks are draining their RRSP’s, their parents’ savings, getting fleeced with private lenders, and are even paying insane prices for temporary “RE” (condos) that are the size of my laundry room.

We are embarking on another 4 year cruise with a PM who is in a persistent vegetative state. We are going to pay a huge price in this country for electing these goofballs again, and 8 years will be long enough to bring some pain.

The only “wind” the massively indebted are going to get these days, are those emanating from Ottawa.

#75 Nonplused on 10.28.19 at 10:13 pm

#57 Linda

“As for the upcoming electoral circus in our neighbor to the south, will ‘the Donald’ be able to beat the impeachment process & win a second term to boot? I gather that Republicans would be more than happy if he became ‘Mr. Invisible’, especially if that ensured they won the next election.”

I think Trump wins the next election whether he is impeached or not. Even if he is impeached, if he is not convicted of a crime he is still eligible to run again. And the democrats don’t seem to have anyone to run and win. They don’t have a candidate. Trump, on the other hand, speaks well to a large number of people who have electoral college votes.

This election will be not about Warren vs. Trump or Sanders vs. Trump or even Hillary vs. Trump. It will be about Trump vs. Not-Trump. Trump is going to win against any Not-Trump currently in the race.

How can Trump survive all the scandals? Well, he hasn’t been caught in black face or something similar to the SNC scandal, even though through his previous business dealings one would think there would be 10 to 20 times more possibility for it than with Trudeau the drama teacher, and those in Ontario seemed to overlook Trudeau’s sins.

Anyone who has been in a locker room or read a memoir written by a rock star knows that what Trump got caught saying on the tape is sometimes true.

“Every girl’s crazy ’bout a sharped dressed man.” – Some bearded philosopher.

So far that’s the worst they have on him.

Sure, he files his tax returns one way, and reports his assets to lenders another, but that is so common that I don’t know if there are any business owners who don’t do it exactly the same. Capital gains taxes are not payable until you sell, and that is when you report the actual numbers. They aren’t going to find anything there. The IRS has already been over it 100 times. When they find something, he pays up.

So what Shiff has left after Mueller concluded there was no evidence Trump colluded with the Russians was maybe Trump himself is interfering with the elections by asking Ukraine to investigate Hunter Biden. This is a “Total abuse of power!” say the democrats! Or is it? Trump has been under investigation since before he took office. But is something with the Biden’s was maybe wrong, for what reason should it be left un-investigated? If no crime turns up, so be it, but is it now the case that the US president cannot ask for investigations? What power does he have then? They say “Investigating a political opponent!!!” Ok. But what if it turns out nothing? No harm done. But what if it turns out that Hunter Biden’s placement on these boards looks like influence? Well, good job president doing what you were hired to do. Biden don’t get immunity from investigation for him and his family just because he is in politics, and especially not from a president that is continually under investigating. Everything goes both ways.

Trump wins 2020, by a landslide. There really isn’t another contender.

#76 Blacksheep on 10.28.19 at 10:16 pm

About the MNP/Ipsos study quoted today:

I often wondered who, actually takes these online polls, like the one that’s the info source for today’s blog, so I dug a bit.
——————————
“The precision of Ipsos online polls.”

https://www.ipsos.com/en-ca/news-polls/Canadians-and-Bankruptcy-Oct-2019
——————————–
“Most of the time, the surveys pay $0.90 through the Ipsos i-Say point system.”

https://www.surveycool.com/ipsos-i-say-review/
———————————
I can only speculate about the income levels, of people that would spend the time doing these, extremely low paying, online polls?

I assume most people with say, a median income of 75K or better, would not waste time on this.

So this means the likely income levels of those actually taking these online polls for monetary gain, is well below average. And since this poll asks financial questions (not politics) from the poll taker, I have doubts as to whether the data produced, can be trusted to represent the average Canadians situation.

I of course realize Garth is simply the messenger and is in no way responsible, for the accuracy of the data provided.

#77 BC Renovator on 10.28.19 at 10:23 pm

Ian from Oshawa on 10.28.19 at 6:57 pm
This looks/sounds like a disaster waiting to happen. I mean … crushing debt and people barely able to service it! What are they going to do if they lose their job? Incur a major, unexpected expense?

God help us if the rates ARE increased. I think it might be a cascade of events that pushes us into a dark time. Perhaps the price of gas goes up, rates increase slightly, or banks call a loan or two. Everyone needs to unload their $900,000 mortgage. Trouble is… the house is now worth $700,000. What are they going to do?

Garth, perhaps you could tell us what the “canary in a coal mine” is? You know, the indicator that the house of cards is about to fall. I wonder what goes first… unemployment increases? Would gas prices do it?

Fill us in, oh wise seer! Tell us what usually precedes a big economic belly-flop. I’m very curious!

Your fan in the thriving metropolis of Oshawa!

________________

Read history! It tells the entire story and it repeats itself, Humans don’t learn. They always say (like now) “this time is different”

#78 not 1st on 10.28.19 at 10:32 pm

#70 Doug on 10.28.19 at 9:27 pm
“If you’re a small business dude, don’t just take cash in dividends or keep a whack of it in your corp. They’re coming for you…..”
Garth what should we do?
Soon. – Garth
—–

Sell your personal assets to your corp, crystalize your capital gain, then feed the gains back to yourself as tax income free and invest in MAGA. Stay out of maple, condos and the GTA.

#79 Nothing Surprises on 10.28.19 at 10:50 pm

Normal people don’t read this blog, as you know. – Garth.

The masses are sinking into a morass of debt and delusion.- Garth.

Most people never will. They will so regret being ordinary. – Garth.

………………………………………………………………………………
Your information is very true and enlightening and well received by blog followers as beneficial advice.

The above referenced statements tell all blog readers these facts will continue unabated for all of us, simply because the ordinary and masses……..most people, are not aware and never will become aware.

Therefore, a lost cause to believe things will change.

#80 IHCTD9 on 10.28.19 at 11:00 pm

#68 Nonplused on 10.28.19 at 9:06 pm
——-

Excellent post.

The flip side is adding up all the handouts, tax shelters, tax credits, and tax avoidance.

There’s no way Ottawa can keep doing business like this. It’s gotten so ****** up, that a regular dude like me (who is doing great financially) is getting 5 figure tax returns, thousands per year in hand outs, and pays a pittance in income tax. Now, thanks to Trudeau getting re-elected, I am probably going to pay even less.

This is happening at the same time that Ottawa is bankrupting the country trying to do even more of same. Who is going to pay all these taxes? From where I’m sitting, half the folks I know are some how getting 5 figures worth of combined taxes back / handouts, not paying more.

If the Libs keep at it, Canadas’ finances are going to look like they just got run over by a D9.

#81 Diversified in Oakville on 10.28.19 at 11:10 pm

So half of Canadians need to borrow to survive?
Give me a break!
How old are your leased SUV’s? Buy good 10 year old cars.
How many expensive cell phone plans? Don’t need one.
How many kids do you have that I need to subsidize? If you can’t afford them, then don’t have them!
Give me a break. You made your own mess here folks, now suck it up!
Choices, you made bad choices.

#82 Lorne on 10.28.19 at 11:19 pm

#67 Re-Cowtown on 10.28.19 at 9:03 pm
#47 Dave on 10.28.19 at 7:30 pm
Re #28 The price of oil is what screwed Alberta, not Trudeau. Despite shipping record amounts of oil to the US under the Cons watch, they managed to end up with a deficit for 14 years! Astounding…

++++++++++++++++++++++++++++++++++
I call B.S.

Harper had to deal with the Great Recession. Trudeau is merely piddling away the opportunities that others handed him. As the old saying goes “It’s very seldom that kiddie is smarter than daddy.” T2 proves that statement in spades.

Oil companies invested billions of dollars on the government promise that a pipeline would be built by the time their projects came on line. Trudeau piddled and dithered and played one part of Canada off against the other until the investors got pissed off and left the building. And he’s still doing it.

Capital is mobile. It moves to the country that offers the best deal or at least one that won’t screw it over. Break your promises and investment capital leaves. Kind of like if your boss repeatedly misses payroll. Eventually you get the hint and move your capital (in this case your labour IS your capital) elsewhere.

Besides, overseas oil markets pay more than US markets. They price crude in Brent pricing, which is usually $10-15 higher than WTI. This partially helps explain why gasoline is so expensive in Vancouver; the BC’ers are buying Alaskan crude that is priced at world Brent price rather than slumming it and getting all their oil from Alberta at cheaper WTI pricing. Waste of $$, but hey, that’s BC for you.

And BTW, 400,00 barrels/day of Alaska crude are tankered off the BC coast and travel within eye-shot of the BC legislature everyday. People are so ill-informed that they have no clue where their energy comes from. Or maybe BC’ers should hire Greta to tell Trump “How dare you ship crude off BC’s coast….how dare you!!!!”

…….
Yep, right down Juan de Fuca Strait to Cherry Point in Washington. You may wish to compare that route to running a tanker from Burnaby through Second and First Narrows in Burrard Inlet smack in the middle of the city of Vancouver. Notice any difference?

#83 LP on 10.28.19 at 11:29 pm

Garth, I think #22 did an end-run around you in your effort to delete #14. Have a look.

#84 GRG on 10.28.19 at 11:33 pm

Public behaviour is shaped slowly, and over long time periods. The “one asset strategy” originated many decades ago. Probably not long after WWII. I was only a teenager, but can recall Morton Shulman advocating, about the time of Canada’s better celebrated centennial birthday, buying the most expensive home one could afford (and let inflation take care of the rest). During the ’70s, as the Nifty Fifty market cratered and the Arabs hoarded their oil, he was right.

Tax free capital gains, supportive government policies, the ability to raid the RRSP, historically low interest rates, hard working immigrants distrustful of anything other than physical assets, the decade long insanity of property price escalations in the GVRD and GTA all reinforce the meme. Garth, I’m sure you see that every day in the writings of those seeking your (entirely unlikely) confirmation of imprudent interactions with property.

$30B deficit? Ha.
When the next recession finally arrives the automatic stabilizers + the usual “emergency stimulus” budgets should easily blow it well past double that.

As the T2 Liberals continue to bring a scaled up Wynne experience to “all the Nations of Canada” we will be talking about $70B deficits as though this is perfectly reasonable. Lets hope when enough voters are finally fed up we have someone better prepared than Dr. Ford to heal the damage.

#85 viorelli on 10.28.19 at 11:54 pm

One of the fellas I work out together with here in BPOE recently (in the last 3-6 months) liquidated all of his assets including business with over 60 employees in Canada except the primary residence. Some assets are now in Switzerland (Canton Vaud), others in Thailand. This country is turning socialist very fast with brainwashed zombies. There is absolutely no point in running your own business anymore or having rental income. The COV is raising property taxes 10 % next year, but you can legally only raise 2.4 %!!! So I am just supposed to eat 7.6 %, and it is only this year alone, I cannot renovict, etc. etc. No wonder business is leaving the country for greener pastures or lower COL like sunny Thailand. Now there are over 60 people on the street who will have to fight for an ever shrinking piece of pie in Canada, who do you blame, the owner who sold out? I would probably do the same.

#86 Tony on 10.28.19 at 11:56 pm

Wow, it just seems to get worse. Why is it impossible for most people to live within their income? I think the reason may be related to the inability of people to understand risk. We imagine that a leak in a pipeline will destroy the environment forever and a leak is a common thing. Yet the real risk of bankruptcy is a non-existent possibility.

#87 Linda on 10.29.19 at 12:04 am

#63 ‘Crowded’ – I heard about that but read that a number of fans were cheering Trump even while others were chanting against him. So unless Trump is impeached prior to the next election any outcome is possible. That whole electoral college thing confuses the heck out of me, but I think that if enough electoral college votes go Trump’s way he wins even if most of the voters voted for someone else.

#88 Ponzius Pilatus on 10.29.19 at 12:31 am

#29 IHCTD9 on 10.28.19 at 6:37 pm
#116 Ponzius Pilatus on 10.28.19 at 11:29 am

IHTC
Here’s the deal:
Attach a copy of your Insurance bill on your next post.
So can see and weep. Simple.
BTW, did you watch Mountain Men?
———

Nah, I’d rather keep bringing it up, it’s a great example of how letting government run things ends up Costing 10X more than it should.
———-
So you’re backing out.
Talking the talk, I see.
10x more.
Please provide backup numbers.
Thank you.

#89 Smoking Man on 10.29.19 at 12:55 am

Hey Tree huggers..

Is it wrong to chuck a new fully loaded lighter into the recycling bin?

#90 El Gartho Magnifico on 10.29.19 at 1:11 am

Joint non registered account? How exactly does that work? Can the growth in there be attributed to either party? Does it always have to be in the same proportion?A little primer for newbs pls Garth.

#91 BoDiddley on 10.29.19 at 2:48 am

Everyone I know; family, friends, relatives, acquaintances, etc, all leveraged to their necks. Many with no savings or investments, credit cards maxed out, taking out cash advances from payday lenders, $300-400k homes sold as fast as they can build them, taking fancy vacations/cruises, seemingly everyone’s driving brand new SUV’s and F150’s, and as others have attested, now they’re all salivating over the latest iPhone. And don’t forget to upgrade to all new stainless steel appliances too, simply because the neighbour did…

I don’t understand anything that’s happening anymore. What *I* personally know is that I’m glad I no longer have an emotional or vested interest in any of this garbage, I have no stake in the outcome, nor do I know what this solution is for this wicked and greedy system of things we’ve become. The amount of individuals –old and young alike — who haven’t the faintest clue or or fundamental understanding on the basic laws of economics or how our economy works — is frighteningly astonishing. Even my 14yr old grandson thinks money magically appears out of nowhere simply because you ‘just push a few buttons’ on the ATM. Certainly makes one question what exactly they’re teaching these kids in our schools today…

*sigh*

All I can do but shake my head anymore. The Canada that I remember ceased to exist a long time ago. Scattered to the wind along with common sense and conventional wisdom. I don’t know where things are headed, but the ‘recovery’ we witnessed over the last decade was all debt-based. The party was fueled — then extended — by keeping interest rates artificially and making sure that ‘cheap’ money kept flowing to the masses, but the piper WILL inevitably have to be paid at some point. When is the party over? When the debt-clock finally strikes midnight? My chief concern is the next recession and downturn won’t be of the ‘garden type’ variety…

Good luck, folks.

#92 JWD on 10.29.19 at 4:37 am

#91

Nailed it

Kicking the can down the road – and it’s been quite a long road at that. Ultra low interest rates, cheap money, buy now pay later, keeping up with the Jones mentally on credit credit credit. Interesting future for certain.

#93 I’m stupid on 10.29.19 at 7:11 am

Tony on 10.28.19 at 11:56 pm

Wow, it just seems to get worse. Why is it impossible for most people to live within their income? I think the reason may be related to the inability of people to understand risk. We imagine that a leak in a pipeline will destroy the environment forever and a leak is a common thing. Yet the real risk of bankruptcy is a non-existent possibility
——-

That’s simple… monkey see monkey do. As long as the monthlies are covered people will continue to spend. It’s engrained in our culture now. Look at every tv show or interview that involves someone winning money, the interviewer asked “what are you going to do with the money” the person who won already has it spent.

#94 maxx on 10.29.19 at 7:45 am

@ #16

Excellent – just how I’ve been feeling lately.

#95 maxx on 10.29.19 at 7:59 am

@ #20

“I bought a pipeline?”, a stellar array of sartorial accoutrements, 2 airplanes and a partridge in a pear tree.

#96 leebow on 10.29.19 at 8:09 am

Unfortunately, no extra tax will help the majority of people who hope to benefit from it. They need to change their habits. Extra few $100 taken form “the rich” (savers and retirees) and given to them will make no difference.

On the good side of things, we don’t know yet what will actually happen. It is very possible that some positives will come out of this too.

Since the exemption gets smaller, at some point it probably makes sense to move extra money into a corp, start deducting expenses, and file gains as income, if I understand correctly?

#97 Tater on 10.29.19 at 8:32 am

#29 IHCTD9 on 10.28.19 at 6:37 pm
#116 Ponzius Pilatus on 10.28.19 at 11:29 am

IHTC
Here’s the deal:
Attach a copy of your Insurance bill on your next post.
So can see and weep. Simple.
BTW, did you watch Mountain Men?
———

Nah, I’d rather keep bringing it up, it’s a great example of how letting government run things ends up Costing 10X more than it should. Same thing the Libs did to electricity prices here in Ontario.

———————————————————

Oh dear. In 99 the Cons passed a law deregulating energy in Ontario ending the policy of selling electricity for the cost of generation and distribution with no profit.

Then, with the help of Enron, they set up the MDC. The idea was by having an exchange independent companies would spring up to sell power. They didn’t. Then in 02 the Cons tried to sell Hydro One but were blocked.

The Libs come to power and run up huge debts to get through the GFC and then sell Hydro One. Of course, the owner of Hydro One is irrelevant because thanks to the IESO prices are set on the MARKET and not by Hydro One.

So, no the Libs didn’t ruin the hydro market. And perhaps the best thing to come out of this all is that people in the sticks are finally coming close to paying a fair rate to have electricity delivered to them. As a conservative that should make you happy, no?

#98 Incubus on 10.29.19 at 8:33 am

“And they all have a vote.”

That was my first thought when I read that.

We are doom.

If T2 raise taxes, than economy will slow more and income taxes will go further down.

I think we are entering in circle vicious.

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

#99 crowdedelevatorfartz on 10.29.19 at 8:38 am

@#88 Ponzie Plodder
“Talking the talk, I see.”
+++++
So enssentially your pro govt car insurance.
Well.
In BC you are in the minority.
No one here insuring their car is happy with the exorbitant rates they are forced to pay TO THE GOVT.

ICBC is now a political hot potato and shoot themselves in the foot with every ridiculous arguement they put forth.

Do you really think if the govt puts forth “No Fault” legislation ( which would eradicate most of the expensive litigation costing them billions per year) …. do you really think they will then lower ICBC rates?
Bwahahahaha.
ICBC is the Golden Goose that lays budget balancing eggs.
So whether you’re the coffer raiding BC Liberal party or the inept NDP ….you aint killing the goose that lays those budget balancing eggs.

When average car insurance rates are hitting $4000 a year( less than a decade are these rate increases) maybe you’ll open your obstinate eyes and realize it isnt the goose that’s being “plucked”.

https://www.lowestrates.ca/news/bc-drivers-pay-nearly-2000-year-auto-insurance-highest-country-25736

#100 Dharma Bum on 10.29.19 at 9:05 am

It’s a huge indictment of our culture, in which 70% of people own expensive assets but have financed them with a sea of debt. – Garth
——————————————————————–

Whatever happened to living within your means?

People dug their own holes.

Ignorant and weak.

#101 MF on 10.29.19 at 9:09 am

5 viorelli on 10.28.19 at 11:54

Cries about “socialism”…then proceeds to advocate transference of money into a one-party government run state known worldwide for sex work. Nice.

Everything is hunky dory until the next coup and it isn’t eh “viorelli”?

MF

#102 thebarold on 10.29.19 at 9:17 am

the definition of ‘basic living costs’ is way out of whack for most people in Canada. Either that or they are borrowing for to make rent because they blew their paycheck on a new iphone and ubereats and now can’t make next month’s rent.

#103 Dana Palin on 10.29.19 at 9:18 am

Diversified in Oakville, I know what you mean, it is so hypocritical that all these people get into so much debt buying crap they don’t really need or is necessary.

I worked 29 years in Oshawa and just lost my job 2 months ago but my wife and I always prepared and socked away as much as possible. I am 59 years old and my wife is 57 but we are all stressed out about our finances like many of our coworkers.

The house is paid off, no mortgage or any debts, we always owned just one car and managed to save and have investments of $765,000 in RRSP’s, TFSA’s and non-registered. I will get my early C.P.P. next year and the severance package will go a long way too.

#104 Dharma Bum on 10.29.19 at 9:32 am

#50 crowdedelevatorfartz

Saved 40k ( free food, lodgings, etc).
1st thing he did when he got to town. 3 days in the tattoo parlour (6k).
——————————————————————–
Man! That must be SOME TAT!

#105 Calgary Rip Off still on 10.29.19 at 9:55 am

Taxes are an inevitable part of civilization. The question is how are taxes spent?

In the United States much of the money goes to military spending. This is largely due to the paranoid mentality that exists in many states, but not all. Typically the heartland, the middle of the united States and the eastern southern states embrace the collective us vs. them mentality. In the northeast there is typical Yankee liberalism and in the northwest apathetic dissonance(“Seattle Freeze”). The problem is that the population is so big that standardized health care is next to impossible so Obama cloaked the idea in that if you dont pay you get fined(nice).

Here in Canada there is some entitlement due to a large population such as tax allocation. Due to unions and group think most think that they have individual choice as to where taxes are allocated and if they dont like it they threaten to abandon the country.

Currently in Alberta the issue is that Jason Kenney promises at length a pipeline. Likely due to multiple factors including the cost of refining the bitumen, this will never happen. Multiple Albertans hang onto the delusion that this province is unlike Siberian Russia and has ample value. The reality is that the land is overpriced and other than clean air and water, how is a sub zero province so highly priced? The only reason is oil and gas. There is nothing else here. And as such mortgages remain the same cost as rentals and that is why residential properties still sell for double what they really are worth while the owners who timed it correctly and bought when properties were half their current value hold on in the delusion that the oil pipe line will save their butts financially. Sooner or later a provincial sales tax will happen and the reality that Calgary is no different than Novosibirsk will settle in.

Until that time let the delusional people that live here go on and on about how Quebec owes them, Trudeau is a crook, etc etc. While Trudeau may not be a straight shooter what politician is? The ignorance in Alberta about reality is amazing.

#106 Re-Cowtown on 10.29.19 at 9:55 am

Yep, right down Juan de Fuca Strait to Cherry Point in Washington. You may wish to compare that route to running a tanker from Burnaby through Second and First Narrows in Burrard Inlet smack in the middle of the city of Vancouver. Notice any difference?
++++++++++++++++++++++++++++++++++

Sure do. In one case we have no control over the shipping standards and are at the mercy of what a foreign country determines as acceptable. In the other we ensure best in the world care standards and practices.

Oh, and we also get paid billions of dollars a years, which we can then invest in schools, hospitals, bridges roads, universities and pensions for our seniors. And defuse regional tensions within Canada and stop paying foreign dictators money to turn around and use the profits to promote terror in the rest of the world.

Any questions?

#107 Ponzius Pilatus on 10.29.19 at 9:58 am

#99
I bothered checking your link.
Here’s what I found.
http://www.ibc.ca/on/about-us

#108 Blog Bunny on 10.29.19 at 9:59 am

Garth,

If I sell my ETFs to cristalize capital gains, what do I do then ? I buy the same investments over again after 30 days ?

#109 Headhunter on 10.29.19 at 10:00 am

hey dawgs.. hope all is well, been taking a break for a bit but read this post haha “oh boy”

Of course for most people there is more month then $$$..designed that way. We “boomers” let houses become “financial instruments” vs a place to live and have a family. We let our good jobs go overseas.

Why do you think 70% of Millenials favour socialism? Not Rocket Science. They KNOW the game is rigged and the “jig is up”.. Hence they vote for free stuff and we get T2

#110 conan on 10.29.19 at 10:10 am

RE: #87 Linda on 10.29.19 at 12:04 am

There is video on You Tube that shows the crowd dynamics clearly.

Trump is shown on the jumbo-tron and the crowd goes ape chit negative. It is only after the screen changes to show a military veteran that the crowd applauds.

Trump is not popular in DC.

#111 Trumpie on 10.29.19 at 10:12 am

Kanada is doomed, there’s no point in coming here unless you come from a place where the Americans/Russians are raining bombs over your head or come from places like Sudan/Angola..

Europeans coming here, pffff… that was an eternity ago.. now an Eastern European passport is better than a canadian one. There’s one more place where the canadian passport is relatively good that’s the good ol’ USA… lol.

#112 DON on 10.29.19 at 10:21 am

IHCTD9

If you Google mountain men wood burning truck…you tube clips. There are the clips. They wrecked the truck when the trailer hitch hit the parking brake and the truck rolled down the hill and crashed into the trees.

#113 Mattl on 10.29.19 at 10:29 am

#91 BoDiddley on 10.29.19 at 2:48 am
Everyone I know; family, friends, relatives, acquaintances, etc, all leveraged to their necks. Many with no savings or investments, credit cards maxed out, taking out cash advances from payday lenders, $300-400k homes sold as fast as they can build them, taking fancy vacations/cruises, seemingly everyone’s driving brand new SUV’s and F150’s, and as others have attested, now they’re all salivating over the latest iPhone. And don’t forget to upgrade to all new stainless steel appliances too, simply because the neighbour did…
———————————————————-
How do some of you know your friends and neighbors finances so intimately? I see this posted a lot. Seems strange to me, and frankly a bunch of BS.

I have no idea as to the savings levels of my friends. Most make good money, and appear to be doing well. Maybe they are running check to check but I doubt it. And I’m talking a pretty big peer group.

Some of them might even like the new iPhone – that camera does look cool – but I wouldn’t say I know anyone salivating over it. TBH I have no idea what phones my family or friends carry.

I’d be questioning myself if I was running with a bunch of losers that couldn’t make their daily commitments. Maybe time for a new group of friends? Or maybe these guys aren’t doing that bad and a bit of jealousy?

#114 not 1st on 10.29.19 at 10:32 am

Someday Garth will have to come on this blog and tell everyone to remove their wealth from Canada. if wealth protection is a goal of a financial advisor, sticking with a home country trying to rip it out of your hands is counter productive.

#115 Ponzius Pilatus on 10.29.19 at 10:35 am

#3 Paddy on 10.28.19 at 4:39 pm
So just rob from the rich (via taxes) and give to the poor….right guys???…….(sigh)
——————–
What else do you suggest?
Holding them up and robbing them on the Highway?

#116 DM in C on 10.29.19 at 10:45 am

The housing blame is firmly at the doorstep of CHMC, and backstopping mortgages for the banks.

Change the qualifiers to be based on income and location and cap the max insurance.

RE will correct, and we need it to correct. Otherwise our kids and grandchildren are hooped (if they already aren’t).

#117 IHCTD9 on 10.29.19 at 10:49 am

#97 Tater on 10.29.19 at 8:32 am

So, no the Libs didn’t ruin the hydro market. And perhaps the best thing to come out of this all is that people in the sticks are finally coming close to paying a fair rate to have electricity delivered to them. As a conservative that should make you happy, no?
___

I was actually referring to Wynne’s public corp she set up to take on debt and cover the subsidy hit to OPG. IE – OPG still gets paid (through debt), and we’re on the hook for it. 5 year deal though, so it will end, and if nothing is done to make it all disappear again, then the hydro bills will skyrocket 75%+.

As a Con, I’d be happy if my kids would not have to pay interest on debt that was accumulated to finance a subsidy which basically only exists because KW was trying to win an election.

FWIW, McGuinty’s Green power debacle was a large reason hydro shot thru the roof. He offered private solar producers something like .80 KWH, and the rest of us consumers watched our bills hockey stick in the years that followed. Every other hillbilly with a few acres out here in the sticks slapped up a 10KW Micro-F.I.T. system to cash in.

The Libs ran Ontario for 15 long years prior to Ford, I wouldn’t be reasonable or honest if I blamed anyone else.

#118 Ponzius Pilatus on 10.29.19 at 10:49 am

#103 Dana Palin on 10.29.19 at 9:18 am
Diversified in Oakville, I know what you mean, it is so hypocritical that all these people get into so much debt buying crap they don’t really need or is necessary.

I worked 29 years in Oshawa and just lost my job 2 months ago but my wife and I always prepared and socked away as much as possible. I am 59 years old and my wife is 57 but we are all stressed out about our finances like many of our coworkers.

The house is paid off, no mortgage or any debts, we always owned just one car and managed to save and have investments of $765,000 in RRSP’s, TFSA’s and non-registered. I will get my early C.P.P. next year and the severance package will go a long way too.
————-
Congrats.
With that kind of money stashed away you will live a very comfortable retirement.
Unlike 90% of all Canadians approaching retirement.
Hope JT does not come after you with more taxes.

#119 IHCTD9 on 10.29.19 at 11:01 am

#88 Ponzius Pilatus on 10.29.19 at 12:31 am

Nah, I’d rather keep bringing it up, it’s a great example of how letting government run things ends up Costing 10X more than it should.
———-
So you’re backing out.
Talking the talk, I see.
10x more.
Please provide backup numbers.
Thank you.
___

Yes I am “backing out” of all the BS I’d have to do just to link you a pic of my Ins Bill. I don’t really care whether you believe me or not (no offense). A couple other dogs from Ontario posted their rates, and they are similar (Penny Henny posted and pays even less than I do).

At this point, if you think all of us Ontarians are working together to deceive you about our cheap rates – then a pic of my bill would do no good as would have to be fake anyway.

#120 IHCTD9 on 10.29.19 at 11:06 am

#112 DON on 10.29.19 at 10:21 am
IHCTD9

If you Google mountain men wood burning truck…you tube clips. There are the clips. They wrecked the truck when the trailer hitch hit the parking brake and the truck rolled down the hill and crashed into the trees.
___

Thanks – I figured YT would have something on it if MM is a popular show.

#121 IHCTD9 on 10.29.19 at 11:22 am

#113 Mattl on 10.29.19 at 10:29

How do some of you know your friends and neighbors finances so intimately? I see this posted a lot. Seems strange to me, and frankly a bunch of BS.

I have no idea as to the savings levels of my friends. Most make good money, and appear to be doing well. Maybe they are running check to check but I doubt it. And I’m talking a pretty big peer group.
___

I know quite a bit about the finances of those I work with, just through osmosis over years/decades.

With Family and friends, I find those that are in good financial shape LIKE to talk about money. So you get to know all about them, and they get to know all about you.

Many of those who are up SC know it, and get irritated if money/debt comes up. That tells you all you need to know.

There are also a few who don’t know/care about money and don’t know/care about their financial condition. These too, you learn about through osmosis. Little bits of info over years that paint a pretty good picture of what’s going on.

#122 not 1st on 10.29.19 at 11:33 am

If I was to remain heavy in the equities market, I would be minimal Canada, like 10% or something. No bonds, that’s a bet against govt debt and we know where Trudeau is taking that.

There are funds that have more ROC, covered calls forcing dividend and low taxed distributions rather than CG. Some of those would be an option. I don’t think growing a TFSA is a smart move anymore because the average person has zero in there, soon it will be targeted as a shelter for the rich. I would stream out the tax free monies, take the currency it and convert to trump bucks.

#123 Re-Cowtown on 10.29.19 at 11:41 am

Trump is not popular in DC.
++++++++++++++++++++++++

When someone is trying to drain the Swamp that everyone in DC is drinking deeply from do you honestly expect them to cheer?

Cripes….

#124 MF on 10.29.19 at 11:52 am

114 not 1st on 10.29.19 at 10:32

Yeah. Except of course that this is an issue facing the entire western world. Just look at the policy proposals down south with the Democrats as an example.

You have to learn how to adapt. Trying to stir the pot with complaints is a waste of time.

Best course of action is to learn tax avoidance (not evasion) like Garth advocates. Day in and day out. Are you listening?

MF

#125 Classical Liberal Millennial on 10.29.19 at 11:58 am

My wife and I are early 30s, 3 kids, 17 years and $195k left on our mortgage. 1 student loan and 1 HELOC we used for renovations.
Our Total Debt Servicing ratio is approximately 28% of our NET income. Not gross. Is this a healthy ratio?

#126 Remembrancer on 10.29.19 at 12:07 pm

Oh, just get a sales / consumption tax AB, like almost everyone else…

http://www.msn.com/en-ca/money/topstories/colby-cosh-the-creeping-horror-alberta-never-knew-it-was-voting-for/ar-AAJuRqe?ocid=ientp

#127 not 1st on 10.29.19 at 12:27 pm

#124 MF on 10.29.19 at 11:52 am

That’s getting harder and harder to do. When the govt is desperate for cash for pet projects there are fewer places to hide. A corporation is one of them but it isn’t a total solution. You end up moving assets further from your reach and then investing behind the cover of a numbered company is more complicated. I thoroughly believe this govt wants everyone dependent.

#128 Dean Kotas on 10.29.19 at 12:46 pm

I heard from a long time friend of mine that the capital gains taxes on primary residences is already baked in the cake. it is a sure thing. Now, what He told me that about 68% of Canadians own a house, condo and about 40% of Canadians have sizeable capital gains of at least $350,000 to $500,000+.

So most Canadians that voted Liberal, NDP just cost themselves a $100,000+ income tax bill per household and they don’t even know it. As their principal residence market value grows, it will too. It is quite possible that by the time Canadians decease or are forced to sell their house or decide to for whatever reason, higher capital gains taxes could push their average capital gains tax bill to $175,000 to $250,000 in the next 10, 15, 20 years.

As for most Canadians in retirement, whatever crap they get from the government will be so basic and little according to purchasing power not nominal dollars that they will still be losers as well. The politicians made out well and fool them as well.

#129 Lorne on 10.29.19 at 1:09 pm

#106 Re-Cowtown on 10.29.19 at 9:55 am
Yep, right down Juan de Fuca Strait to Cherry Point in Washington. You may wish to compare that route to running a tanker from Burnaby through Second and First Narrows in Burrard Inlet smack in the middle of the city of Vancouver. Notice any difference?
++++++++++++++++++++++++++++++++++

Sure do. In one case we have no control over the shipping standards and are at the mercy of what a foreign country determines as acceptable. In the other we ensure best in the world care standards and practices.

Oh, and we also get paid billions of dollars a years, which we can then invest in schools, hospitals, bridges roads, universities and pensions for our seniors. And defuse regional tensions within Canada and stop paying foreign dictators money to turn around and use the profits to promote terror in the rest of the world.

Any questions?
………….
I thought this was a discussion about the shipment of oil via tanker….not any type of freighter entering USA or Canadian waters. If we actually are about that, I do not have any big issue with oil tankers controlled by US standards sailing down Juan de Fuca Strait, that I have travelled down many times…it is a wide marine highway with minimal marine concerns other than other vessels which are a concern wherever one sails.
Back to my point, Burrard Inlet, which, it appears, you have limited knowledge about….is not Juan de Fuca Strait. There are 2 narrowings of the inlet where the tide runs very quickly and can push boats off their intended course. This is bad enough with smaller boats but with extremely wide tankers, there is little room for error. A grounding at any one of these Narrows would be catastrophic for the port of Vancouver. Nobody would want this to occur but is eventually likely to once we start pushing tankers through there on a daily basis as opposed to once or twice a week.

Your other issue re money, that somehow morphed into foreign dictators promoting terror in the rest of the world, does not deserve a comment.

#130 MF on 10.29.19 at 1:20 pm

11 Trumpie on 10.29.19 at 10

I know just a troll but I see foreign passports all day at my workplace.

Probably more European ones when the EU collapses.

MF

#131 Dumb Wealth on 10.29.19 at 1:35 pm

Incomes can rise. Expenses can fall. But most people will always trend towards a subsistence lifestyle. Most people don’t have the foresight or discipline to spend a great deal less than they earn. It has been like that forever.

#132 PastThePeak on 10.29.19 at 1:37 pm

#117 IHCTD9 on 10.29.19 at 10:49 am
#97 Tater on 10.29.19 at 8:32 am

So, no the Libs didn’t ruin the hydro market. And perhaps the best thing to come out of this all is that people in the sticks are finally coming close to paying a fair rate to have electricity delivered to them. As a conservative that should make you happy, no?
___

FWIW, McGuinty’s Green power debacle was a large reason hydro shot thru the roof. He offered private solar producers something like .80 KWH, and the rest of us consumers watched our bills hockey stick in the years that followed. Every other hillbilly with a few acres out here in the sticks slapped up a 10KW Micro-F.I.T. system to cash in.

The Libs ran Ontario for 15 long years prior to Ford, I wouldn’t be reasonable or honest if I blamed anyone else.
++++++++++++++++++++++++

Sooo many do not understand why the McGuinty Green Energy plan was such a financial catastrophe costing rate payers (and now tax payers) huge $$$$, for overall little (real world) renewable generating capacity.

– As IHCTD9 points out, the feed-in tariffs (guaranteed rates) for most wind & solar (for all but the last few projects) were huge – multiples over the going rate. When the cost is 10x (solar at 80c), or 4-5x (wind at 30c) what the rates used to be with hydro/nuke/gas, even a small amount can significantly raise the overall cost

– All of the wind/solar are in *very* distributed & distant locations. The costs to put in the transmission lines to these places were HUGE (paid for Hydro One – not by the Liberal-friendly businesses which built the solar/wind farms). Very little press about this. Instead of maybe a dozen large generating locations to take generation from, it became hundreds of renewable locations.

– Since renewables are not guaranteed to generate all the time, some backup capacity is required. So natural gas plants are required to be built, but which are only used when needed. So we had to pay to build fossil fuel plants anyways. But the cost per kWh from this is also expensive (which the greens then use as a point against the costs of gas generation).

All together, the auditor general (in 2017) documented that Ontario ratepayers forked out $37 billion more than necessary from 2006 to 2014 and would spend an additional $133 billion by 2032 due to global adjustment electricity fees on hydro bills.

**But sure Tater – Liberals didn’t hurt the Ontario electricity system at all** (it is all Doug Ford and Mike Harris’ fault).

#133 Jesse on 10.29.19 at 1:54 pm

#6 SunShowers on 10.28.19 at 4:55 pm
So, 7 in 10 families can’t handle an emergency, and 50% can’t even survive without borrowing more?

And we’re supposed to feel sorry for KPMG clients? People named in the Panama Papers?

Ha.
Tax capital gains at 100% of the marginal rate. Bring on the Unexplained Wealth Orders.
******************************

That’s exactly how you drive successful businesses and entrepreneur’s from Canada into the US.

Money talks, and money walks!

#134 Jesse on 10.29.19 at 2:11 pm

#47 Dave on 10.28.19 at 7:30 pm
Re #28 The price of oil is what screwed Alberta, not Trudeau. Despite shipping record amounts of oil to the US under the Cons watch, they managed to end up with a deficit for 14 years! Astounding…
**************************

Dave, Trudeau’s bills C-48 and C-69 destroyed investor confidence in Canada, and led to massive capital flight from Alberta, as well as the rest of the country. Alberta is no stranger to oil prices, but what hurt was T2 and the Libs stabbing them in the back when they were already beaten down by the low oil prices. 9 out of 10 province’s opposed bills C-48 and C-69, but T2 went ahead and pushed them forward.

You want to know why Alberta and the West hate T2 and the Liberals? Look no further than bills C-48 and C-69.

#135 Sail Away on 10.29.19 at 2:20 pm

#101 MF on 10.29.19 at 9:09 am
5 viorelli on 10.28.19 at 11:54

—————————–

Cries about “socialism”…then proceeds to advocate transference of money into a one-party government run state known worldwide for sex work.

—————————–

Well… you definitely get more bang for your buck in Thailand!

#136 Tater on 10.29.19 at 2:24 pm

#132 PastThePeak on 10.29.19 at 1:37 pm
#117 IHCTD9 on 10.29.19 at 10:49 am
#97 Tater on 10.29.19 at 8:32 am

So, no the Libs didn’t ruin the hydro market. And perhaps the best thing to come out of this all is that people in the sticks are finally coming close to paying a fair rate to have electricity delivered to them. As a conservative that should make you happy, no?
___

FWIW, McGuinty’s Green power debacle was a large reason hydro shot thru the roof. He offered private solar producers something like .80 KWH, and the rest of us consumers watched our bills hockey stick in the years that followed. Every other hillbilly with a few acres out here in the sticks slapped up a 10KW Micro-F.I.T. system to cash in.

The Libs ran Ontario for 15 long years prior to Ford, I wouldn’t be reasonable or honest if I blamed anyone else.
++++++++++++++++++++++++

Sooo many do not understand why the McGuinty Green Energy plan was such a financial catastrophe costing rate payers (and now tax payers) huge $$$$, for overall little (real world) renewable generating capacity.

– As IHCTD9 points out, the feed-in tariffs (guaranteed rates) for most wind & solar (for all but the last few projects) were huge – multiples over the going rate. When the cost is 10x (solar at 80c), or 4-5x (wind at 30c) what the rates used to be with hydro/nuke/gas, even a small amount can significantly raise the overall cost

– All of the wind/solar are in *very* distributed & distant locations. The costs to put in the transmission lines to these places were HUGE (paid for Hydro One – not by the Liberal-friendly businesses which built the solar/wind farms). Very little press about this. Instead of maybe a dozen large generating locations to take generation from, it became hundreds of renewable locations.

– Since renewables are not guaranteed to generate all the time, some backup capacity is required. So natural gas plants are required to be built, but which are only used when needed. So we had to pay to build fossil fuel plants anyways. But the cost per kWh from this is also expensive (which the greens then use as a point against the costs of gas generation).

All together, the auditor general (in 2017) documented that Ontario ratepayers forked out $37 billion more than necessary from 2006 to 2014 and would spend an additional $133 billion by 2032 due to global adjustment electricity fees on hydro bills.

**But sure Tater – Liberals didn’t hurt the Ontario electricity system at all** (it is all Doug Ford and Mike Harris’ fault)
————————————————————-
If you think that the green energy initiatives (which account for less than 10% of the power generation in Ontario) are responsible for the increase in rates rather than switching from a non-profit to a for-profit model, I don’t know what to tell you.

But, I’d also point out that Toronto has lower hydro costs then most major US cities. Compared to Quebec and Manitoba it doesn’t look very good, but that’s a function of them not having to build nuclear plants 30 years ago and decommission coal plants this decade because they have a ton of hydroelectric power.

#137 BoDiddley on 10.29.19 at 3:02 pm

#121 IHCTD9; Thanks for answering Mattl. You nailed it, and that’s precisely how I feel.

When you see your buddies hitting up pay day companies after work, when you watch your friends pay for the treats from Timmy’s with their VISA–then proceed to take another cash advance because they need to fuel up their big-ass pickup, when you watch your own kids buying toy after toy and then brand-new furnishings on ‘buy now, no payments for six months to a years’ deals, you get a sense at what’s happening around you–and how they ‘afford’ all this stuff. Our neighbours even proudly boasted how they remortgaged their house — so they could buy a boat and install a nice sauna by the swimming pool. LOL.

Don’t even get me started on how many millennials are already $50k in debt before they’re even finished school and haven’t even set foot in the workforce yet. What’s more, many of these poor souls don’t even find jobs in the career they majored in. Most of them have BS degrees from some Liberal Arts college, and the majority believe they’ll be earning six-figures when they apply for that much-coveted office job.

I just laugh at what’s become (or rather what’s left) of society today. IMO, people have gone absolutely bonkers…

#138 Westcdn on 10.29.19 at 3:05 pm

My former wife was born and bred in Ottawa. I would visit her family and they called themselves central Canadians. They thought I was a hick and I would get mad at their newcasts showing Albertans as Neanderthal/Paleo – this was 30 years ago. I don’t accept people living in Toronto concrete coffins to tell me how to live. I think I know who are stupid. I am looking at ways to make Alberta separation possible – tell me why I want to stay in confederation without saying I will die as a landlocked nation. We are already landlocked. I consider myself Canadian but I not willing to put up with more BS.

#139 waggily tail on 10.29.19 at 3:06 pm

#102 thebarold on 10.29.19 at 9:17 am
the definition of ‘basic living costs’ is way out of whack for most people in Canada. Either that or they are borrowing for to make rent because they blew their paycheck on a new iphone and ubereats and now can’t make next month’s rent.

….

I finally broke down and got a prepay phone, severed the landline, and messaged a few friends/relats. Forget that. 26 letters spread over 9 keys means I’m sticking to one fingering the tablet. But i will not give up my $70 4g flip phone now, I enjoy its stark utility.

… Speaking of which, the KaiOS 1.0 browser on the goflip boots me off greaterfool.ca. Even through Goggle…click, boom. Other sites work fine. Just an fyi.

(Cool dog above btw. Like my wife’s hair in morning.)

#140 Remembrancer on 10.29.19 at 3:13 pm

#132 PastThePeak on 10.29.19 at 1:37 pm
– Since renewables are not guaranteed to generate all the time, some backup capacity is required. So natural gas plants are required to be built, but which are only used when needed.
———————————————
Don’t forget some were unbuilt too after plum West end GTA ridings went all NIMBY – the unbuilding of which was telegraphed by all major parties during that election… Nobody had our backs there…

#141 crowdedelevatorfartz on 10.29.19 at 3:15 pm

@#107 Ponzie Platitudes

Yooo Hoooo
Ponzie.
See the front Page of TODAYS Vancouver Sun?

Top Headline in big bold letters
and I quote”
Nunber of ICBC staffers earning $150k a year doubles since 2016.
Then the story goes on to describe the number of staffers earning 200k.
and the 400 they hired earning 75-100k in the past 2 years….

Proving once again anything the private sector can do.
The govt can do for three times the cost.

ICBC losses last year $1.15 billion for fiscal 2018.
Slightly down from fiscal 2017 where they lost $1.3 billion

These govt slugs and sloths have an indefensible position.

Get rid of ICBC.
Privatize and put all those bon bon eaters back in the private sector where they can try (and fail) to go on “stress leave”….

ICBC …..Political poison and I cant wait to see them gone.

#142 crowdedelevatorfartz on 10.29.19 at 3:16 pm

For Ponzie Platitudes

https://vancouversun.com/news/local-news/number-of-icbc-high-earners-nearly-doubles-since-2016

#143 MF on 10.29.19 at 3:25 pm

#135 Sail Away on 10.29.19 at 2:20 pm

“Well… you definitely get more bang for your buck in Thailand!”

-I agree, plus he and all the other miserable ex pats in Thailand can go shove it!

MF

#144 Penny Henny on 10.29.19 at 3:54 pm

119 IHCTD9 on 10.29.19 at 11:01 am
#88 Ponzius Pilatus on 10.29.19 at 12:31 am

Nah, I’d rather keep bringing it up, it’s a great example of how letting government run things ends up Costing 10X more than it should.
———-
So you’re backing out.
Talking the talk, I see.
10x more.
Please provide backup numbers.
Thank you.
___

Yes I am “backing out” of all the BS I’d have to do just to link you a pic of my Ins Bill. I don’t really care whether you believe me or not (no offense). A couple other dogs from Ontario posted their rates, and they are similar (Penny Henny posted and pays even less than I do).
////////////////

Renewal for the Stang just came in. $542 for the year, full coverage

#145 Damifino on 10.29.19 at 4:06 pm

#87 Linda

That whole electoral college thing confuses the heck out of me
———————————–

It’s a vestige of another time when results moved at horse speed and elections weren’t settled for weeks after election day. It will probably never change.

but I think that if enough electoral college votes go Trump’s way he wins even if most of the voters voted for someone else.
————————————–

Kind of like what just happened in Canada even without an electoral college to obfuscate things.

#146 Terry Crawford on 10.29.19 at 4:07 pm

My cousin is the opposite. He is still young, 23 but he has a trucking business a few men operation and makes net after tax $10,000 a month. He is a saver freak for sure. He saves 70% of his net income, $7,000 a month and just sticks it in 3% GIC’s at some Hamilton, Ontario credit union. He is almost full there with $204,000 stashed a way there for almost 2.5 years now.

He has no house, no mortgage, no debts, just rents a small place, $1,000 a month+ utilities and the rest buys all his stuff at grocery stores and prepares it at home buying nothing out of the house. He basically wants to reach a $1 million and then take it more easy. He is hoping to reach that goal in 8.5 to 9.0 more years.

#147 IHCTD9 on 10.29.19 at 4:10 pm

#136 Tater on 10.29.19 at 2:24 pm
#132 PastThePeak on 10.29.19 at 1:37 pm
#117 IHCTD9 on 10.29.19 at 10:49 am
#97 Tater on 10.29.19 at 8:32 am

If you think that the green energy initiatives (which account for less than 10% of the power generation in Ontario) are responsible for the increase in rates rather than switching from a non-profit to a for-profit model, I don’t know what to tell you.
___

I think there is a little more to that story than changing from “non” profit to “for” profit.

IIRC, everything was fine until McGuinty decided the price would float on the “market place”. The brand spanking new “competition” would keep prices competitive.

Problem was the marketplace was faked via a bunch of middle men re-sellers that did not produce one single watt of power. Not exactly organizations that had a vested interest in the business. They were there just to make money and nothing else. I don’t recall them doing anything of value at all. OPG supplied the power, and Hydro One handed the grid, just like the week before.

If you’re old enough, you’ll remember what happened next. The second the new “market” went online, prices shot up so high, so fast, that McGuinty had to halt it – and shelve the whole schmozzle for a year.

Then there was the infamous T.O.U. billing – this really cranked up the price – especially for those who refused to do their laundry at 3:00 am.

So, TOU, + “float on the [fake] market” pricing + paying private solar corps almost a buck a kilowatt all combined to drive the price of electricity in Ontario from one of the lowest in Canada, to one of the highest in Canada, in under 8 years.

All this cumulated in stratospheric hydro prices – so high that the Wynne Liberals hid the true cost of hydro behind a debt guzzling public corp, and called it the “fair hydro plan”.

The problem lies quietly for now, waiting for 2021/2022 when someone else will get a turn to deal with it. IMHO any politician that actually fixes it will be out on his/her ear come the next election.

https://www.cbc.ca/news/canada/toronto/ontario-hydro-bills-1.3860314

#148 Hale Mano on 10.29.19 at 4:13 pm

“….problem, like a busted furnace, divorce or job loss”

I like how you equated a busted furnace with a divorce, Garth.

#149 AGuyInVancouver on 10.29.19 at 4:19 pm

#23 MF on 10.28.19 at 6:17 pm
This whole thing is so rich.

How many times do we hear about some report saying Canadians debt levels are too high?

Every week? Every few days?

Even the Bank of Canada warns against debt levels ad nauseum. Then, knowing full well the overwhelming majority of the debt is used for real estate so people can put a roof over their head, the BoC decides to LOWER the interest rate to encourage more debt.

How smart is that move?

MF
_ _ _
Yes, if you want people to save give them an incentive, not 2.5% on savings. Central bankers have erred mightily in not “normalizing” interest rates.

#150 Greg Francin on 10.29.19 at 4:22 pm

Garth, is it true there is for sure capital gains on primary residences in Canada? If so real estate has just lost it’s main advantage tax wise anyway.

#151 IHCTD9 on 10.29.19 at 4:30 pm

#144 Penny Henny on 10.29.19 at 3:54 pm
119 IHCTD9 on 10.29.19 at 11:01 am
#88 Ponzius Pilatus on 10.29.19 at 12:31 am

Renewal for the Stang just came in. $542 for the year, full coverage
___

There you go Ponzie.

Gov’t vs. Private – (as Fartz says), same product for 3-4 hundred percent more money.

#152 Phylis on 10.29.19 at 4:45 pm

Dont forget ontario TOU changes for winter pricing Nov 1. Wash accordingly.

#153 Yukon Elvis on 10.29.19 at 4:53 pm

#144 Penny Henny

Renewal for the Stang just came in. $542 for the year, full coverage.
……………………

Just renewed my 05 Honda Civic in Kelowna today.Basic coverage, no collision, 70 years old, retired, no accidents ever, $840 per year.

#154 Linda on 10.29.19 at 5:05 pm

#110 ‘Conan’ – thanks for clearing up what actually happened.

#145 ‘Damn’ – I’m wondering how much of the Con popular vote was due to folks not seeing any other party as a viable alternative. Or not even having another party as an alternative. For a short period of time in our riding the only registered candidate was the Christian Heritage one. Eventually the Liberal, Conservative & PPC candidates were posted. The Elections Canada website never showed that we had a Green, NDP or Independent candidate (they were on our ballots, though) so I have to wonder how many other ridings had the same issue. Folks are less likely to vote for candidates they didn’t even know were running.

#155 Barb on 10.29.19 at 8:14 pm

So that’s why it was so busy downtown today.
CPP and OAS payment day.
Maybe welfare too?

#156 Barb on 10.29.19 at 8:37 pm

#63 crowdedelevatorfartz on 10.28.19 at 8:52 pm

“If the World Series crowd at game 5 are any indication….. President Trump may be a one term wonder…..”

—————————————————————
Not a baseball fan, but just happened to be walking past the TV as Trump and the Mrs. were shown on the game’s big screen, and they turned to notice it.

Did anyone think it odd these two actually each waved AT A TV SCREEN?
Instead of turning back toward (actual) people present at the game, and waving AT THEM?

Oh well, at least those two aren’t ruining two homes.