The mucked-up middle

This week Chateau Bill brings in his autumnal economic statement. Interestingly he will do it not in the House, facing catcalls and raspberries from the oppo benches, but in a presser opposite the comatose Parliament Press Gallery. So much for accountability.

Anyway, expect him to be rosy, upbeat and yammer on about “the middle class and those working hard to join it.” As you know, we now even have a Minister of Middle Class Prosperity, a member of T2’s 38-member Cabinet. (Each minister also has a Parliamentary Secretary with bonus pay and a preferred status. This means half of the entire Liberal caucus has been granted favours.)

Morneau will talk about growth, jobs, hope and ponies. Do not count on him to dwell on revenues or deficits. The Trudeau agenda calls for a slew of new spending and no balanced budgets for the entire mandate. But there will be new and more taxes coming in the winter budget. The good news for Ottawa will be a strong US economy and robust markets pulling us forward. The bad news is this collection of financial losers called ‘citizens.’

Despite ten years of expansion, rising asset values, the best job growth in decades and the cheapest interest rates in history, Canadians have been backsliding. Savings rates have slipped while debt swells. More people are retiring with mortgages than ever before. Four in ten families are $200 or less a month from default. Never before have more young adults lived with their parents, seemingly afraid to venture forth. The middle class is turning out not to be such a hot destination.

On Friday Stats Canada announced the household leverage rate hit a new all-time high. It’s just a hair under 15% of disposable income, the majority of it for mortgages. This may not sound like a lot, but when you remove renters (35% of taxpayers) and the people without mortgages (half of homeowners), and factor in lowly interest rates, this is a big number. It suggests enough people are in serious trouble to trigger issues for everyone. Indeed, it took only 8% of debt-pickled Americans to crash that country’s housing market and send the world into a financial panic.

Eight charts Bill will not be sharing with you.

Here’s an illustration from RBC showing how household leverage has crested, despite 2% mortgages,

And, by the way, the increase debt servicing costs is outpacing income gains, as you can see in this chart from TD Economics. Just imagine if the economy stalls (wages drop) or inflation jumps (rates increase). Pooched.

And here’s a more graphic portrayal from the alarmists at WolfStreet.com. It does a fine job of depicting what households have done to their finances over the past 20 years.

By the way, I forgot to mention the personal savings rate. So if you were wondering if more debt was okay because we’re just socking more into our TFSAs, RRSPs and non-registered investment accounts, well, forget it. In the 1980s we saved 20% of what we made. Now it’s 1%, and nearing historic lows.

And what about the economy? Will it save us from ourselves?

Chateau Bill will suggest exactly that. No reason to worry. Just move into the middle class and relax. But, alas, the economy is not what it used to be. Increasingly it is based on consumer debt, continued household borrowing and overspending on real estate. As this BMO chart illustrates, we are building a condo economy, in stark contrast to the US.

Nowhere in the world, according to the International Monetary Fund, have house prices jumped more relative to incomes than in Canada. In short, we are buying what we cannot afford.

And this is born out in the loans we’re swallowing to do it. This chart from Bloomberg shows household debt has returned to a near-decade level, even with the stress test and a plethora of other government measures in place to quell borrowing. Conclusion: they didn’t work.

Finally, debt in Canada is vastly out of step with the US experience. Americans went through a housing bust, deleveraged and have not resumed their bad habits – and meanwhile their economy blossomed. In Canada we escaped the real estate crash, kept borrowing and buying, never corrected our path, and have arrived at this point.

What does all this mean for you, the responsible GreaterFool reader who is not working hard to join the others? Stay tuned.

 

115 comments ↓

#1 Art on 12.15.19 at 3:20 pm

The future of Vancouver RE:

https://www.citynews1130.com/2019/12/15/sales-spike-analyst-predicts-greater-vancouver-market-more-owners-losing-homes/

#2 Burnaby Boy on 12.15.19 at 3:21 pm

You keep mentioning the “Minister if Middle Class Prosperity.” Its a joke, isn’t it?

#3 Stan Brooks on 12.15.19 at 3:25 pm

The whole economy has turned into one gigantic debt fueled ponzi scheme that is accompanied by skyrocketing inflation and total collapse of competitiveness.

Canadian debt slaves. Precisely.
1 % of income saved!
That says it all.

The fact that the lieberals announce their ‘tax break’, all $ 75 per year ‘tax cut’ of it in such way (with fanfares) is really indication of something very, very bad coming our way.

Middle class in Canada is probably classified as north of 250-300 k family before tax income in the big cities.

I.e 1-2 % of the populace.

Stupid, poor sheeple,

Cheers, on Scotch today.

#4 SusanM on 12.15.19 at 3:29 pm

Just finished reading this overview from a realist in the Vancouver market…

#5 joblo on 12.15.19 at 3:35 pm

Steven Harper, please come back!

#6 Felix on 12.15.19 at 3:40 pm

A very informative photo today.

Using canines as footstools is an excellent alternative to letting them roam around sniffing at crotches and stupidly pooping on everyone’s lawn.

Plus it’s a perfect utility match given their unfortunate IQ level.

#7 crowdedelevatorfartz on 12.15.19 at 3:45 pm

Yikes!

#8 Alessio on 12.15.19 at 3:52 pm

Is the savings rate low due to savings accounts paying crap? Perhaps folks are taking your advice and investing. Maybe we need a graph that’s shows canadians’ investing rate? If no one is investing who’s reading this pathetic blog then???

#9 Rick on 12.15.19 at 3:54 pm

First

#10 Willy Dandertull on 12.15.19 at 3:56 pm

Garth, These levels look close to 2008 levels. Central Banks are adding a lot of gold but I don’t think we are. What asset class would be safe to add to for 2020? Thanks, Willy D.

#11 Stan Brook's Psychiatrist on 12.15.19 at 3:57 pm

#19 Stan Brooks on 12.14.19 at 1:48 pm

“Being smart and responsible in a mental institution/mob rules is a losing proposition.”

No truer words were ever spoken by Stanley. He prides himself on where he is. Every day is sunshine and lollipops in Stanley’s ward. Today we had him finger painting inflation charts and he was in 3rd heaven…

#12 slick on 12.15.19 at 4:05 pm

I am stunned at the people I cross paths with that are living way above their means. Boats, cars , holidays, kids hockey, etc.
BTW. ,, first

#13 Linda on 12.15.19 at 4:08 pm

If the stress test has ‘done nothing’ to put the brakes on borrowing, the possible punting of it by the government theoretically shouldn’t make things worse. What will make things worse for a lot of people who have been prudent financially is the slew of new taxes being handed down at all levels of government. Not to mention price increases for other goods & services. Our insurance bill for home & vehicle came in; prices have increased 5% for the house insurance & 9% for the vehicle insurance over last years prices. No, we did not make any claims. Our municipal government has informed residents that their property taxes will increase on average by 8% in 2020. Plus we can expect increases in costs for all utilities & municipal services. Groceries are expected to increase in price as well. Will be interesting to see what the inflation rate will be for the 2020 year.

#14 Mr Canada on 12.15.19 at 4:08 pm

Keeping with the theme of funny titles re: Minister of the Middle Class & Prosperity — I want to be Minister of Unicorns and Ponies…its diverse yet inclusive…

#15 oh bouy on 12.15.19 at 4:10 pm

@#5 joblo on 12.15.19 at 3:35 pm
Steven Harper, please come back!
_____________________________

hehe, things so bad for some that they’re pining for the return of harper.

#16 Dave's not here on 12.15.19 at 4:15 pm

So I saw a graph somewhere that Australia is even more pickled than Canada is in terms of debt to income ratios. Can Garth weigh in? Are they the canary in the coal mine?

#17 Dumb Wealth on 12.15.19 at 4:15 pm

I’m astounded by how “well” everyone lives. 90% of the houses I go to have just been renoed. These are Gen Xers who benefited from buying houses before prices skyrocketed. But instead of socking away the gains, they withdraw HELOCs to do major renovations, essentially putting them on par with house poor Millennials. All self inflicted.

I feel like human-kind has a natural tendency to drift towards a subsistence lifestyle. Because any time we are ahead, we find new ways to return to the ‘hand-to-mouth’ lifestyle.

Now we have middle class wannabes sending their kids to private school. I say, use the free public school system, invest whatever you would have spent on private schools and provide your kids a nice head-start at age 30.

https://dumbwealth.com/is-it-worth-sending-your-child-to-private-school/

#18 Dave on 12.15.19 at 4:18 pm

When is the debt bubble going to pop….we’ve been hearing about this for years

#19 bsallergy on 12.15.19 at 4:47 pm

Where is Bouey the 14th when you need him. Alas the brave governor of the bank of canada who killed inflation in the 70s is nowhere to be seen.

#20 Dave on 12.15.19 at 4:52 pm

DELETED

#21 crowdedelevatorfartz on 12.15.19 at 4:54 pm

@#18 Dave
“When is the debt bubble going to pop….we’ve been hearing about this for years”

++++

I usually dont do this but…for you, I make an exception.
The debt bubble will pop a week from next Tuesday on Christmas eve…..
North Korean nukes that cant make it all the way to the US will land on Whitehorse, Edmonton and Regina ….apparently not enough distilled soya sauce in the rocket booster…..or something like that….

This will send millions of indebted Canuck homeowners into a sell panic mode….decimating the markets….

Count on it.

#22 Wkg on 12.15.19 at 4:58 pm

This story and similar articles that I have been reading lately is making me very nervous about holding Canadian banks.This is the first time I have considered owning a us bank over canadian

#23 Shawn Allen on 12.15.19 at 5:06 pm

We’re Number One!

Many of the charts show Canada in first place. The U.S has some catching up to do.

#24 jess on 12.15.19 at 5:08 pm

boomin’ and bustin’

Exclusive
Property development
‘Six-year nightmare’: Shattered investors left with no one to sue for faulty units

by Carrie Fellner and Nigel Gladstone
A “defective” business model known as phoenixing, refers to behaviour that becomes illegal when it is proven a company was deliberately wound up to avoid paying debts, such as tax and GST. A model that experts say has reached epidemic proportions in the NSW building industry: developers and builders creating $2 companies to carry out apartment projects, taking the profits and then shutting them down before they can be pursued in court over any defects bill

The inquiry was launched following the evacuations of Sydney’s Opal Tower, Mascot and Zetland apartment buildings, which rocked public confidence in multi-storey units.

David Christie, an engineer with more than 50 years’ experience, said: “The industry is full of $2 companies, doing quick and dirty developments, with little oversight or control.
“They open a specific company for each development for the very reason that if something goes wrong … they can just pull the pin and walk away. At the end of the day, it is the poor consumer that wears the full brunt of it all.”

https://www.smh.com.au/national/nsw/six-year-nightmare-builders-phoenixing-to-avoid-fixing-apartments-20191129-p53ffc.html
https://www.smh.com.au/national/nsw/rushed-and-bogus-council-and-developer-accused-over-new-tower-safety-scandal-20191029-p535bo.html
https://www.smh.com.au/sydney-news/mascot-residents-evacuated-after-identifiable-movements-in-the-basement-area-20190614-p51xwt.html

#25 Welcome to Slurrey on 12.15.19 at 5:12 pm

More housing fear doom ? Been hearing it for 10 years plus and at the same time housing has only increased. Stay tuned………. for further home price increases since in the long run, yes housing does go up (especially in the yvr)

#26 Where's MY Money Going Greedeau? on 12.15.19 at 5:21 pm

Another reason not to buy a condo:
https://www.cbc.ca/news/canada/edmonton/fort-mcmurray-bankruptcy-condo-insurance-1.5393448

#27 Camille on 12.15.19 at 5:35 pm

I don’t know what it means. % residential of GDP is interesting but bigger than US. So? Plus all the leveraging; notaries, appliances, cars, furniture, landscaping…
It means more gvm’t debt. Wobbly rates, inflation. Gigantic balance sheet and Japanification. And that would be the good news?
Note: rates are low now, and volatility is resembling Europe, +and- 100, 200, 300 %.

#28 Canadians on 12.15.19 at 5:35 pm

Gotta be the dumbest of the lot

#29 Doug t on 12.15.19 at 5:38 pm

Something wicked this way comes

#30 Long-Time Lurker on 12.15.19 at 5:46 pm

#72 Seeker on 12.14.19 at 11:07 pm
Our eighteen year old is taking a gap year before deciding to enroll in some kind of formal training. The financial advisor at the bank told me today to move the funds from the RESP into safer assets like bonds, etc., as the money would be needed next year for schooling. He talked quite a bit about a recession that could really affect the RESP investment, so to keep the money safe we should move it to something safer if we start pulling money out of it next year…Is this the best thing to do now?

>Sounds prudent. GICs would be even safer than short-term bonds.

#31 Long-Time Lurker on 12.15.19 at 5:46 pm

>Potential Maritimes economic engine / cod fishery replacement.

Nova Innovation to develop tidal array in Canada
12 December 2019

A Scottish energy firm has been granted a licence to deploy a tidal array in Canada.

Edinburgh-based Nova Innovation said the move would lead to 15 new turbines being installed in the Bay of Fundy, Nova Scotia, by 2023.

The project will provide enough electricity to power 600 homes.

In 2016, Nova said its offshore tidal array at Bluemull Sound off Shetland had become the first in the world to deliver electricity to the grid.

Some components for the array in Canada will be made in Edinburgh, although engineering work on the seabed platform and turbine rotors will be carried out in Canada.

Nova Innovation chief executive Simon Forrest said: “In the face of the climate emergency, we are on a mission to transform the power of the oceans across the world into clean, predicable energy.

“At five times the size of our array in Shetland, which is the first of its kind in the world, this project is a massive step forward for Nova Innovation and the sector – propelling Nova Scotia to a leading position in tidal energy.”….

https://www.bbc.com/news/uk-scotland-scotland-business-50757550

#32 Long-Time Lurker on 12.15.19 at 5:47 pm

DELETED

#33 Squirrel on 12.15.19 at 5:51 pm

Let’s impeach Bill and replace him with a squirrel.

#34 Blog Bunny on 12.15.19 at 5:52 pm

Very sobering, although it is very hard to relate since I have always been a saver. I pulled my spreadsheet from my years as a college student from a decade ago.

My net income from the job was 25K. The total net income was higher thanks to tax refunds. I was living on my own. I had no discretionary expenses (as in zero for restaurants & entertainment). I used public transport. The biggest expenses other than food and housing were textbooks and a once per year Cuba vacation for less than 800$. My monthly food budget was 100$. My friends kept asking me what I was doing to stay so thin :)

Now, my savings rate was 50% of my gross income and I was investing it all :)))

#35 Ray on 12.15.19 at 5:53 pm

“Minister of Middle Class Prosperity” sounds like something straight out of “1984” Ministries.
“Ministry of Truth”, “Ministry of Plenty”. I bet even North Korea wouldn’t even use such a lame name.

#36 oh bouy on 12.15.19 at 5:53 pm

@#17 Dumb Wealth on 12.15.19 at 4:15 pm
I’m astounded by how “well” everyone lives. 90% of the houses I go to have just been renoed. These are Gen Xers who benefited from buying houses before prices skyrocketed. But instead of socking away the gains, they withdraw HELOCs to do major renovations, essentially putting them on par with house poor Millennials. All self inflicted.
_____________________________________

Some of us genXers have actually done both.

#37 The Totally Unbiased, Highly Intelligent, Rational Observer on 12.15.19 at 5:57 pm

Only Canada appears to be doomed at the moment. It might be in some serious trouble for always voting down the wrath of God on itself. Its future is now unclear due to the smokey haze from all the dope heads.

Practically everywhere else in the world is looking great.

In the United States of America, President Trump is working hard to Make America Great Again (MAGA).

In the United Kingdom, the Brits got their BoJo back.

Too bad Canada cannot be as firmly united and deliriously happy as these other places.

#38 Blog Bunny on 12.15.19 at 5:58 pm

Correction: savings rate 50% of net income (56% to be exact).

Now as a high income earner, I often speak to my accountant and he tells me how broke people in the same earnings range are. Again, I have trouble to relate, but he tells me that big mortgages on big houses are the main killer, even for double six figure incomes.

#39 Grunt on 12.15.19 at 6:10 pm

Simple economic indicator for Toronto: Compsre photos of cities Lakeside activities. Say 1919 to 2019.

201https://torontosun.com/news/local-news/the-way-we-were-sidewalk-toronto-may-be-the-envy-of-cities-around-the-world

Queens Quay was about to come into existence with infilling. The Esplanade-Lakeshore was heavy industry resplendent with Farley Mowat heavy pollution. Today its condo economy bistoed with online shopping.

#40 BlogDog123 on 12.15.19 at 6:13 pm

Sad to see those CHIP reverse mortgages, “Cash Money”, debt consolidators, installment loan commercials on local TV.

We as citizens must be really screwed.

If you were to explain to clueless Trudeau all the economics articles saying Canada continually lags other countries in productivity gains, he’d probably just roll his eyes and think about announcing more government handouts to the happy unproductive serfs.

#41 conan on 12.15.19 at 6:15 pm

Any blog dawgs thinking of running for the Conservative leadership?
I am looking at you Garth.

#42 Sail Away on 12.15.19 at 6:21 pm

#21 crowdedelevatorfartz on 12.15.19 at 4:54 pm
@#18 Dave
“When is the debt bubble going to pop….we’ve been hearing about this for years”

++++

I usually dont do this but…for you, I make an exception.
The debt bubble will pop a week from next Tuesday on Christmas eve…..
North Korean nukes that cant make it all the way to the US will land on Whitehorse, Edmonton and Regina ….apparently not enough distilled soya sauce in the rocket booster…..or something like that….

This will send millions of indebted Canuck homeowners into a sell panic mode….decimating the markets….

Count on it.

——————————–

Finally! A prediction we can trust.

Most blogdog predictions are pure, unadulterated crap. But this… this just feels right.

Thanks Fartz

#43 Timmy on 12.15.19 at 6:27 pm

DELETED

#44 Rargary on 12.15.19 at 6:32 pm

Raise interest rates so Cdns can’t borrow so much. Key word is can’t, not won’t. Because even with higher rates, if they could borrow more, they would!

#45 Shawn Allen on 12.15.19 at 6:54 pm

Joining the Middle Class

I just saw on Fareed Zacharia GPS that China has succeeded in bringing 850 million people into the middle class.

I am not sure how we should describe their government and economic system. It certainly has its evils.

But it has done a huge amount of good for about a billion people.

#46 Shawn Allen on 12.15.19 at 7:05 pm

Long-Time Lurker’s typo?

“The project will provide enough electricity to power 600 homes.”

**************************
Is that 600 a typo or is this 15 turbine bay of Fundy project a joke?

Meanwhile the last (only?) major turbine that went in the Bay of Fundy failed and has to removed at great cost:

“Oct 25, 2019 – The Nova Scotia government says that any company interested in using the site of a now-defunct tidal turbine must put up $4.5 million to cover the costs of removing the experimental device. The Cape Sharp Tidal turbine was a joint operation between Dublin-based OpenHydro Ltd.”

https://globalnews.ca/news/6081985/nova-scotia-cape-sharp-tidal/

Even Edison had many many failures before getting the light bulb right. Let’s hope this time it works.

Bay of Fundy power generation was much talked about in my engineering classes of the early to mid eighties (in Halifax). It seemed imminent… that was almost 40 years ago…

#47 Abby on 12.15.19 at 7:27 pm

Went to an open house in the lower mainland today. Didn’t know until we spoke to the realtor there that was it a court ordered sale. A quick civil search proved debt issues.

#48 Phylis on 12.15.19 at 7:29 pm

#45 Shawn Allen on 12.15.19 at 6:54 pm
Joining the Middle Class
I wonder what their middle class is….

#49 Nonplused on 12.15.19 at 7:30 pm

Most Austrian economists place the start of the debt explosion at August 15th, 1971, the day Nixon closed the gold window and essentially floated the dollar. It’s too bad we can’t post our own graphs but if you go to:

https://fred.stlouisfed.org/series/GDP

And can figure out how to add the line:

All sectors; debt securities and loans; liability, Level, Billions of Dollars, Not Seasonally Adjusted (TCMDO)

(Hit the “edit graph” button, then “add line”, then start typing the above until it comes up, then hit “add data series”.)

You can see that it seems to be so. The story is that Nixon couldn’t pay for his war in Vietnam so he needed to start borrowing a lot of money. France didn’t like that so they tried to swap their US dollars for gold. This made the exchange rate untenable and rather than empty out Fort Knox Nixon just said “screw you”. Gold was fixed at $35 at the time. It’s $1,475 now.

I suggest you take the few seconds it takes to produce the graph. It shows nice steady growth in GDP, but starting in around the early 80’s debt just sky-rockets and far outpaces GDP growth, from being roughly in line with GDP growth back in the 70’s and all the way back before, to almost 4 times GDP today.

Canada has had a similar experience, but it’s harder to find graphs.

Folks, this is what an inflationary bubble looks like.

So now Turdeau and Moronreau think they can fix the problem by raising taxes. But who can afford to pay it? The reason there is so much debt is because we aren’t making enough money to pay for things as it is. Over the last 40 years we have borrowed 4 times as much money as we have earned. That’s all sectors combined, but it is a reasonable approximation of the problem. The governments at all levels aren’t going to pay back the debt because they don’t have any money. They would have to tax you to pay it back. But who has an extra $20,000 per person (so $80,000 for a family of 4) lying around to pay back their portion of the federal debt? And that does not include provincial and municipal debt. Corporate debt we can leave to the corporations, but if we estimate that provincial and municipal debt is combined another $20,000 per person, so $40,000 per person, and then personal debt is near 1 year’s salary so let’s say $56,000, then a family of 4 is right now (4×40,000+56,000) or a staggering $216,000 per family of 4! Bet you didn’t know that! And I haven’t included mortgages! These are approximate numbers but it illustrates the magnitude of the problem. And there is no reason to be hopeful the trend can be reversed.

So if we back out the personal debt and just look at government (all levels) of around $160,000 per family of 4, how are we possibly good for the money? Well, if you aren’t in the top 10% of wage earners, that is a significant burden on top of all the other bills you have to pay. So the government has to try and squeeze the burden up to the top of the tube. So if we assume anyone making less than $56,000 per year (average wage) won’t be taxed much to pay for it, that means the other 50% of people will need to cover $320,000 in government liabilities. How much are these people making? So the tube will further be squeezed towards the top 10%. But if only the top 10% are responsible, these people are responsible for a staggering $1.6 million dollars each. If we try and push it on just the top 1% it becomes $16 million. If we try and push it on just the billionaires, it is clear we are broke. Even if we had 36,000 billionaires in Canada, which we don’t have anywhere near, they would each owe $1.6 billion for their family of 4.

In reality none of these numbers are realistic they are just illustrative. The pain will be distributed across all income levels. Since income taxes and the HST are unpopular with people earning less than average wage, we go to something like the carbon tax, which nobody will be able to avoid. Nothing is as expensive as a free lunch, and we’ve been avoiding paying the tab for far to long.

“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.” – Charles MacKay

“If something cannot go on forever, it will stop,” – Herbert Stein

I think we are closer to the end of the tracks than we think, but yet the engineer is doing everything he can to get this train going faster.

#50 dakkie on 12.15.19 at 7:31 pm

The State of the Canadian Debt Slaves, How They Compare to American Debt Slaves, and the Bank of Canada’s Response
https://www.investmentwatchblog.com/the-state-of-the-canadian-debt-slaves-how-they-compare-to-american-debt-slaves-and-the-bank-of-canadas-response/

#51 Remembrancer on 12.15.19 at 7:41 pm

#2 Burnaby Boy on 12.15.19 at 3:21 pm
You keep mentioning the “Minister if Middle Class Prosperity.” Its a joke, isn’t it?
————————————-
Depends on whether you mean “that it actually exists” is a joke or “that it actually exists is a joke”…

Letters of mandate link follows – skip to the bullet points below the boiler plate gender-based plus preamble for the high points…

https://pm.gc.ca/en/mandate-letters/minister-middle-class-prosperity-and-associate-minister-finance-mandate-letter

Data will be important apparently, that and dodging actually answering what the middle class is for an entire mandate… A toss up on what will be more entertaining watching that or JWR dodging eviction notices and reassignment to a broom closet…

https://ipolitics.ca/2019/12/13/what-will-the-middle-class-prosperity-minister-do-improve-data-use-mandate-letter-says/

#52 crowdedelevatorfartz on 12.15.19 at 8:00 pm

@#47 Abby
“Didn’t know until we spoke to the realtor there that was it a court ordered sale. A quick civil search proved debt issues.”

+++++

Oh My.
A forced sale in the Lower Brainland….
Where’s Best Place on Earth ( BPOE) when you need him….
The Churchillian “beginning of the end…..”

#53 Boris Corbyn on 12.15.19 at 8:04 pm

#40 low productivity and entitlement are a killer.
When I bought my first home in Canada people wouldn’t buy it because it needed a fresh coat of paint inside…
“Too much work” was what the potential buyers kept repeating…
But everybody HAS to have new countertops and a new car right?
I tried hiring a local to do the paint, worked one hour out of 8 and spent the rest talking on her cell. Then tried to bill me for it. You kiding me? See the door there, take it and never come back.
$100 of paint and brushes a Home Depot and a few weekends later problem solved and loads of money saved.

What is even worse is that you can get a mortgage on a new build with only 5% down. But try and get anything on a new business, no too risky the banks say.

Are we trying to be an economy built on real estate only? In a country frozen 7 months of the year? We’re blessed with loads of space and natural resources and the obsession is with condos???

#54 short horses on 12.15.19 at 8:14 pm

“What does all this mean for you, the responsible GreaterFool reader who is not working hard to join the others? Stay tuned.”

This is precisely what worries me now. I’ve foregone home ownership in favour of a globally diversified portfolio of low-cost ETFs. Which I threw together with 70% of my income as soon as it arrives each month. Will I be penalized for my choices by T2 and Chateau Bill because 99% of Canadians chose a reverse-mortgage plan for retirement?

#55 Prince Polo on 12.15.19 at 8:27 pm

These charts paint a very depressing picture of Canada’s future. Will there be a recommended lightening up of Maple exposure in 2020?

#56 jim on 12.15.19 at 8:52 pm

Mr Morneau should read your column Garth!

Finance minister Bill Morneau to ‘review and consider’ changes to mortgage stress test

https://business.financialpost.com/news/economy/finance-minister-bill-morneau-to-review-and-consider-changes-to-mortgage-stress-test

#57 Yukon Elvis on 12.15.19 at 9:06 pm

#48 Phylis on 12.15.19 at 7:29 pm
#45 Shawn Allen on 12.15.19 at 6:54 pm
Joining the Middle Class
I wonder what their middle class is….
…………………………………..

I’ve been to China. Their “middle class” is nothing like ours. Middle class there is having enough to eat, owning or maybe renting a dump with 3 generations of family, having a cell phone, maybe a tablet, and having a small motorbike. If you have more than that you flaunt it and rub it in everyone’s face. Our middle class would be considered wealthy there.

#58 JV on 12.15.19 at 9:14 pm

#5 Joblo Steven Harper or better John Baird.

#59 TurnerNation on 12.15.19 at 9:24 pm

Let’s re-arrange some deck chairs nothing else to do.

Nominations are open to the first annual
Blog Dog ‘Shaddap You Face’ Award – awarded to excellence in Uppa upp Up endeavors.
How about Flop, WUL, Stan Brooks, Smoking Man, Bigarider.

#60 Sail Away on 12.15.19 at 9:31 pm

#50 Remembrancer on 12.15.19 at 7:41 pm
#2 Burnaby Boy on 12.15.19 at 3:21 pm
You keep mentioning the “Minister if Middle Class Prosperity.” Its a joke, isn’t it?
————————————-
Depends on whether you mean “that it actually exists” is a joke or “that it actually exists is a joke”…

Letters of mandate link follows – skip to the bullet points below the boiler plate gender-based plus preamble for the high points…

https://pm.gc.ca/en/mandate-letters/minister-middle-class-prosperity-and-associate-minister-finance-mandate-letter

—————————————–

I’ve seen some pointless mandates but this may very well take the cake. It would be too kind to summarize this as, ‘blah, blah, blah, and etc., etc.”

#61 newbie dog on 12.15.19 at 9:55 pm

just to play devils advocate……..

I figure the cash economy is probably much stronger than the government realizes and that is really one factor keeping everything afloat. If you factor the cash income of so many people is the debt to disposable income really 1.75 or is it much much lower.

My anecdotal observations:
1. retail antiques store pays my landlord cash
2. previous tenant in one unit worked for landlord ( they have multiple prop.) got paid in cash and paid rent in cash
3. landlords handyman paid in cash
4. my barber is cash only ( $30+ tip= $35)
5. my mechanic I pay always cash
6. girl I work with does makeup for weddings etc. , all cash, weddings is $1000 a pop
7. previous tenant below me worked at Shoppers drug Mart but also did those $1000 cash makeup jobs for
weddings
8. when I go out bill is paid with visa and tip is cash
9.easy for restaurants to buy software to eliminate bills, Quebec cracked down on this but I haven’t heard any other place in Canada
10.lots of Airbnb in my city (Toronto) and as far as I know still not reported to CRA
11. rents have skyrocketed and most homeowners just don’t declare any rent

I could go on but my point is that there is way more strength in the cash economy then the government realizes, and that money is probably not factored into stats canada’s calculation of debt to disposable income.

#62 MF on 12.15.19 at 10:17 pm

Don’t worry. Our central banks will drop the interest rate to help the situation. It’s helped so far.

/Sarcasm

MF

#63 Stable Hands on 12.15.19 at 10:20 pm

Garth could still run for party leadership. Imagine how well him and the Donald would get along. Plus, the TFSA would go back to 10k per annum.

#64 Yabba dabba door on 12.15.19 at 10:22 pm

We, the undersigned mental health professionals (please state your degree), believe in our professional judgment that Donald Trump manifests a serious mental illness that renders him psychologically incapable of competently discharging the duties of President of the United States. And we respectfully request he be removed from office, according to article 4 of the 25th amendment to the Constitution, which states that the president will be replaced if he is “unable to discharge the powers and duties of his office.”

#65 Shawn Allen on 12.15.19 at 10:23 pm

China’s middle class is?

#56 Yukon Elvis on 12.15.19 at 9:06 pm
#48 Phylis on 12.15.19 at 7:29 pm
#45 Shawn Allen on 12.15.19 at 6:54 pm
Joining the Middle Class
I wonder what their middle class is….
…………………………………..

I’ve been to China. Their “middle class” is nothing like ours. Middle class there is having enough to eat, owning or maybe renting a dump with 3 generations of family, having a cell phone, maybe a tablet, and having a small motorbike. If you have more than that you flaunt it and rub it in everyone’s face. Our middle class would be considered wealthy there.

**********************************
Indeed I wonder too what the middle class in China is. Well, pretty sure it is well above what they had just 40 years ago.

Whatever it is, I think it is clear that China’s standard of living has rocketed higher.

I mean there are more cars being sold in China now than in the U.S.. Yes the U.S. has only a third of their population. But more cars sold than in the U.S.? The progress is truly staggering.

Phyllis says they have motorcycles. When was that? 20 years ago it might have been bicycles.

Just staggering progress. It cannot be denied. And good for them!

#66 Treasure Island CEO - 51,053,948.88 Offshore on 12.15.19 at 10:27 pm

Four in ten families are $200 or less a month from default?

You have to consider how weak this statement is when the argument holds true for a decade straight.

Just because someone only has $200 in their pocket does not mean they are going to default.

Did Johnny claim his principle residence tax exemption on his spec property? Yep.

Did Johnny report his rental income? Nope.

Oh dear Johnny. You are a true Canadian.

#67 will on 12.15.19 at 10:31 pm

I saved 20% of my employment income this year. This in spite of two long distance vacations in Canada plus one emergency trip to Calgary and drinking every day. Credit card all paid back to zero. Big saver is I rent (no house maintenance), use public transportation and rarely eat out. I’m also ready to max the TFIA in January.

During the day I laugh
During the night I sleep
My body cleans and repairs itself
And all my work goes well

(Leonard Cohen)

#68 SoggyShorts on 12.15.19 at 10:45 pm

#13 Linda on 12.15.19 at 4:08 pm
If the stress test has ‘done nothing’ to put the brakes on borrowing, the possible punting of it by the government theoretically shouldn’t make things worse.
*******************
Except that in practice people are stupid and the media is almost evil so the RE floggers will shout UPPA UPPA and those ~20% of people who were justifiably shut out will come back in buying way more than they can afford to push prices even higher.

As the Bearded One has said, diddling from the government in any direction doesn’t work– the market will find a balance without interference. Near-constant meddling and policy changing will keep things from settling.

#69 Alberta Ed on 12.15.19 at 11:19 pm

Both Sock Boy and and Chateau Moroneau are silver spoon socialists without a clue how the economy works (or doesn’t). Neither one could profitably run a lemonade stand.

#70 Annick Dotal on 12.15.19 at 11:30 pm

“Minister of Middle Class Prosperity” sounds like an oxymoron to me …. or something out of Harry Potter or Monty Python.

#71 Barb on 12.16.19 at 1:23 am

“Minister of Middle Class Prosperity”

——————————-

Ludicrous, idiotic.

#72 Just snootin' on 12.16.19 at 1:46 am

Eons ago I rented a safety deposit box. Times were good and it was fun to show off the odd looking key on my chain. I forgot whatever I put in the box… Some trinkets, a ring, some papers. Life went by. The key wound up in a drawer. I found myself between jobs and short of cash. Desperation set in and then i remembered my deposit box. It was in the main branch of a big bank downtown, so i hopped the train with my last $2 and nervously signed in at the bank and took my box to a little private room…
$5000 cash in wad and a chocolate bar! A chocolate bar! I love myself.

#73 John on 12.16.19 at 2:18 am

Since the globe has not recovered from the Great Financial Crisis of 2008, the powers that be have been printing money. The next phase of this ponzi scheme is uncontrolled spending by all governments. Canada is just doing it’s part, enjoy the fireworks

#74 NoName on 12.16.19 at 3:38 am

Interesting read about wild fires this year.

https://atmosphere.copernicus.eu/did-2019-really-bring-us-unusual-number-wildfires

#75 Stan Brooks for PM on 12.16.19 at 5:57 am

#41 conan on 12.15.19 at 6:15 pm

“Any blog dawgs thinking of running for the Conservative leadership? I am looking at you Garth.”

Garth has been there and done that and they kicked our fearless sage out of Ottawa. Much like how they stoned the prophets in ancient times…

On the other hand, Stan Brooks has yet to make his mark in Ottawa. Stan, the blog implores you to make your way to Ottawa and put this country back on track. Will you heed the clarion call?

#76 Mississauga Mel on 12.16.19 at 6:03 am

#64 Shawn Allen

“Whatever China’s growth is, it is truly staggering.”

Correct Shawn. The 805 million figure should be adjusted to having left poverty. The middle class by NA standards is probably around 300 million which is still a staggering number. I know first hand because for the past decade I have seen 1000s of Chinese students coming through our international school in Toronto. The auto sales should give you the clue that the number is indeed large…

#77 Dirty Don on 12.16.19 at 6:07 am

#60 newbie dog on 12.15.19 at 9:55 pm

“just to play devils advocate…….everyone pays cash…”

Forgot to mention hookers in your list of services being paid in cash…

#78 Stan Brook's Psychiatrist on 12.16.19 at 6:20 am

#40 Shawn Allen on 12.14.19 at 4:30 pm

Addressing the one and only Stanley Brooks:

“I am not sure what your griping has to do with the topic of career choice. Are you trying to address the topic of telling kids to move out of Canada?”

Shawn, Shawn, Shawn. You still don’t get Stanley do you? Stan is a loser boomer who despite being born at the right time and place has nothing to show for it. Maybe a divorce wiped him out or his lovely interpersonal skills got him heaved out of whatever employment he may have had. So he now has nothing and is a total loser. So he bleats away on this blog as a catharsis for the loser life he has led. His posts are autobiographical. The biggest loser is Stanley himself. Get him now Shawn?

#79 Space Cowboy on 12.16.19 at 7:24 am

Double dipping Boomer civil servants have no need to save. I’m (again) at odds with Trudeau/Moroneau/Butts over their secretive cabal allowing millions of young grads to stay perpetually unemployed because unionized civil servants are allowed to collect two pensions plus benefits and double dip the civil service jobs. Dispicable. Of course there’s no savings. The Liberals are picking up the tab for the greed be and laziness if a few at the expense of the many.

#80 BigAl (original) on 12.16.19 at 7:32 am

When it comes down to the choice of increasing wages or increasing credit, since 1980 the ‘system’ has been choosing to increase credit at a far greater rate than wages, but with the effect of higher asset inflation, and the gap has brought about a massive windfall for capital owners. The wage/salary slaves have no reason to riot or even complain because the credit injection had no negative effect on them materially. Who cares about the mortgage refi interest drain or the car payment when you can ‘insta’ your perfect life with the brand new import car and stone and stucco mcmansion around to your social circle.

The business world simply won’t allow the wage/salary increases needed, but they also won’t allow any collapse (I say ‘won’t allow’ because they have the bipartisan political power in almost all western countries). So the only option for the powers that be, in order to keep everything humming, is to keep expanding credit. Lower interest rates, loose mortgage rules, the inflated high home prices are a permanent phenomenon, along with higher asset prices across the board. The credit card was almost unheard of in the average family household until about 1980, and the ‘bank loan’ was a very rare ritual of sorts. Slowly over the 80’s credit cards became a norm, in the 90’s lines of credit opened up as well as some easier loans, in the 00’s helocs were normalized and lending in general expanded to more products at greater convenience thanks to IT, and all that set up us for the madness we’ve seen in the past 10 years with easy massive mortgages, people having 10 credit cards totaling 100K or more in credit, plus personal lines of credit, plus helocs, plus stretched 8 or even 9 year car loans.

So take your pick:
1) Expand wages/salaries
2) Keep expanding credit
3) Collapse (recession, depression)

#81 Westcdn on 12.16.19 at 7:41 am

I got a kick of my father. We both have/had a hot temper. He would tell me stories about his fighting and I would say BS until guys would verify his stories. Amazing stuff and guys were afraid of him yet had a deep respect. Usually, you had to work at provoking but he could still flash. Believe it or not he was a kind man.

#82 Dharma Bum on 12.16.19 at 8:00 am

Despite ten years of expansion, rising asset values, the best job growth in decades and the cheapest interest rates in history, Canadians have been backsliding. Savings rates have slipped while debt swells. – Garth
——————————————————————–

Hey, the cheaper you make the crack, acid, angel dust, moggies, aya, blind squid, mescaline, magic mushrooms, peyote, snow and ganga, the more hopeless addicts you gonna get!

Cheap debt = Canadian spendaholics

#83 Dharma Bum on 12.16.19 at 8:15 am

#65 Shawn Allen

Re: China –

Just staggering progress. It cannot be denied. And good for them!
——————————————————————–

North Americans will eventually be slaves to the Chinese.

Watch: American Factory (on Netflix)

https://www.youtube.com/watch?v=m36QeKOJ2Fc

#84 crowdedelevatorfartz on 12.16.19 at 8:18 am

@#71 Barb
““Minister of Middle Class Prosperity”
——————————-
Ludicrous, idiotic.

******

Yup.
More smoke and mirrors for gullible politically correct voters to make them feel “empowered”.

It should be amusing to hear the Minister’s “observations” from ‘The Hill” about the “Middle Class”.
Hopefully she will use a bullhorn so we Little People down here in the “middle” can hear her.

But look on the bright side.
At least he didnt promote her to the Senate……yet.

#85 HH on 12.16.19 at 8:19 am

@ 60 newbie

“… make up for weddings – $1000 a pop…”

Did I read that right? 1 grand cash per single face? Or is it more like a whole wedding party. i.e. a bunch of people?

Whoa… Man… Eff me…

If former, I am just blown away. Exactly the sort of thing I was appealing to blog dogs for the other day, in terms of unusual and unexpected earning ideas.

Maybe I’ll get me a side-hustle. How hard can it be to learn anyway? The only obstacle I see is that ladies may be spooked at prospect of getting make-up done by an orc-like 190-pond dude…

#86 crowdedelevatorfartz on 12.16.19 at 8:33 am

Speaking of smoke and mirrors.
Anyone notice the conviction of a former SNC-Lavalin executive this weekend?

https://www.theglobeandmail.com/canada/article-former-snc-lavalin-executive-sami-bebawi-found-guilty-on-all-five/

Gee. That only took what?
Seven years after the RCMP raid on SNC’s head office in Montreal?

https://www.thestar.com/news/canada/2012/04/13/rcmp_raids_snclavalins_montreal_headquarters.html

And rumours have it that the raid ONLY happened after an SNC subcontractor was arrested in Mexico City,… on a private leased jet,…. with millions in cash, jewellery, gold bullion and ….oh yeah… the son of a dictator with Canadian passports………

Apparently The US State Dept had enough of Canada turning a blind eye to SNC’s perceived shenanigans.
Nor did they want that pig Khaddafi living in Montreal with a Canadian passport and millions in cash to pay immigration lawyers for decades….

https://www.cbc.ca/news/canada/cyndy-vanier-sues-snc-lavalin-for-15m-over-mexico-jail-ordeal-1.3227639

Why oh why is that Quebec paragon of virtue …..SNC Lavalin STILL allowed to bid on federal contracts?

https://www.cbc.ca/news/politics/snc-lavalin-contract-defence-bribery-1.5073996

SNC Lavalin.
Banned from bidding on World Bank contracts for 10 years for…….. alleged corruption?

https://www.worldbank.org/en/news/press-release/2013/04/17/world-bank-debars-snc-lavalin-inc-and-its-affiliates-for-ten-years

#87 Ponzius Pilatus on 12.16.19 at 8:50 am

Garth, you misspelled “mucked”

#88 Ponzius Pilatus on 12.16.19 at 8:55 am

#85
average Canadian wedding is 45k.

#89 Phylis on 12.16.19 at 9:48 am

“Minister of Middle Class Prosperity” Mandate? Prevent/distract anyone with middle class prosperity from organizing and disrupting silver spoon organizations. “PM T2, what have you done to create prosperity for the middle class?”. “Er, um, uh”. (Whispers to butts), “What do i say?”. Butts, “The new post, the new post.” “Gotcha”. Pm to msm, “I created the middle class minister.” PM to butts, “Knocked that one out of the park.”

#90 Sail Away on 12.16.19 at 10:30 am

My wife and I and 2 kids moved to Canada 14 years ago with very little at that time, but no debt. Now we still have zero debt, but also 2 houses, 2 cars, a successful business, and save/invest/frivolously spend 80% of our yearly intake.

Also took one full year off work to sail the Pacific in that time and many multi-week trips to Peru, Galapagos, Antartica, Australia, New Zealand, etc.

Life’s not bad here for an opportunist willing to act. There are niches everywhere.

It’s pointless to offer advice, though, because people always seem to know better. Much easier to hire employees and require them to do it your way.

#91 n1tro on 12.16.19 at 10:52 am

#63 Stable Hands on 12.15.19 at 10:20 pm
Garth could still run for party leadership. Imagine how well him and the Donald would get along.
—————
I’d imagine it be 100 times better than how T2 gets along with Trump. 2 straight shooters (1 with knowledge while the other not so much) can still get along.

Also, I just don’t see Garth being the type to gossip, put on black/brown face, grope, or pander for votes to stay in power. 1 term is all is needed to give Canada the wake up call it needs to get back on the right path.

#92 Kothar on 12.16.19 at 10:57 am

Morneau was all talk and rehatch of liberal propaganda. No concrete numbers given just a commitment to more debt and nothing more…but he says all Canadians expect and want it!

#93 Mississauga Mel on 12.16.19 at 11:03 am

#90 Sail Away on 12.16.19 at 10:30 am

“My wife and I moved here 14 years ago….
Life’s not bad here for an opportunist willing to act. There are niches everywhere.
It’s pointless to offer advice, though, because people always seem to know better…”

Like the blog dogs here who call Canada a lousy socialist place to live? Hey Stan Brooks, did you read Sail Away’s post? Care to offer a retort cowboy? Is Sail Away living in the same Canada you are Stanley?

#94 Ponzius Pilatus on 12.16.19 at 11:45 am

#93 Mississauga Mel on 12.16.19 at 11:03 am
#90 Sail Away on 12.16.19 at 10:30 am

“My wife and I moved here 14 years ago….
Life’s not bad here for an opportunist willing to act. There are niches everywhere.
It’s pointless to offer advice, though, because people always seem to know better…”

Like the blog dogs here who call Canada a lousy socialist place to live? Hey Stan Brooks, did you read Sail Away’s post? Care to offer a retort cowboy? Is Sail Away living in the same Canada you are Stanley?
———————-
I believe Sail Aways’s story once he reveals his real name.
Until that he/she/it is just another bragger sailing the internet.

#95 Sail away on 12.16.19 at 12:15 pm

#93 Mississauga Mel on 12.16.19 at 11:03 am
#90 Sail Away on 12.16.19 at 10:30 am

“My wife and I moved here 14 years ago….
Life’s not bad here for an opportunist willing to act. There are niches everywhere.
It’s pointless to offer advice, though, because people always seem to know better…”

———————————————

Like the blog dogs here who call Canada a lousy socialist place to live? Hey Stan Brooks, did you read Sail Away’s post? Care to offer a retort cowboy? Is Sail Away living in the same Canada you are Stanley?

———————————————

There is a caveat, though, and Stan has a point. Now that we’re further up the income scale, the more the government fingers swipe without consideration for the 20+ fulltime jobs, community donations, work-in-kind, etc., that business provides as part and parcel of a strong economy.

Being penalized doesn’t work with opportunism, so I may very well opportunistically skim the cream from this foray and take it all to the States where it won’t be penalized.

#96 RWZM on 12.16.19 at 12:25 pm

Chart compilations! It feels like it’s been a while. Great stuff.

#97 Remembrancer on 12.16.19 at 12:33 pm

#92 Kothar on 12.16.19 at 10:57 am
Morneau was all talk and rehatch of liberal propaganda. No concrete numbers given just a commitment to more debt and nothing more…but he says all Canadians expect and want it!
—————————————
Wild Bill seems to be blaming the civil service pensions along with the rest of us with to a “tax break” (that the income exemption going up maybe?) for driving the deficit higher before they even start borrowing and spending more of our money for new stuff…

Oh, and we’re spending less so consumption tax revenue will be down, bad us… Ignoring revenue for a minute, a line-by-line spending analysis, would be interesting… Maybe we collectively decide we can’t afford to buy a seat on the Security Council for instance, much like an Olympic games?

https://www.cp24.com/news/next-year-s-federal-deficit-stands-at-28b-before-any-new-liberal-promises-morneau-1.4731900

#98 akashic record on 12.16.19 at 12:36 pm

#93 Mississauga Mel

Congrats to Sail Away for his success as enterpreneur.

Some people can make a fortune everywhere – some can’t make a living anywhere.

The world is unlimited possibility for creation of virtually any reality. Some people are amazing at creating better reality for themselves or even for others, some are not at all.

The reasons are plenty and may not be fully understood yet – or ever. It’s best to have an eye and heart for the the entire spectrum.

#99 YVR Expat on 12.16.19 at 12:41 pm

#93 Mississauga Mel on 12.16.19 at 11:03 am
#90 Sail Away on 12.16.19 at 10:30 am

“My wife and I moved here 14 years ago….
Life’s not bad here for an opportunist willing to act. There are niches everywhere.
It’s pointless to offer advice, though, because people always seem to know better…”

Like the blog dogs here who call Canada a lousy socialist place to live? Hey Stan Brooks, did you read Sail Away’s post? Care to offer a retort cowboy? Is Sail Away living in the same Canada you are Stanley?

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

That’s not very common and you know it.

#100 Dups on 12.16.19 at 12:47 pm

In some other countries, US is one, where the property taxes actually go down as the home values go down too. In Canada there has never been a time when property taxes have gone down, this is due to the belief that homes here do not fall in value, or recover quick before the MPAC next evaluation in 4 years. Canada is strangely quiet when it comes to showing real estate weakness. Why?

#101 Sail away on 12.16.19 at 12:55 pm

#94 Ponzius Pilatus on 12.16.19 at 11:45 am
#93 Mississauga Mel on 12.16.19 at 11:03 am
#90 Sail Away on 12.16.19 at 10:30 am

—————————————-

“My wife and I moved here 14 years ago….
Life’s not bad here for an opportunist willing to act. There are niches everywhere.
It’s pointless to offer advice, though, because people always seem to know better…”
Like the blog dogs here who call Canada a lousy socialist place to live? Hey Stan Brooks, did you read Sail Away’s post? Care to offer a retort cowboy? Is Sail Away living in the same Canada you are Stanley?

————————————–

I believe Sail Aways’s story once he reveals his real name.
Until that he/she/it is just another bragger sailing the internet.

—————————————

If you asked for advice and I gave some, I bet you’d know better.

#102 Sail away on 12.16.19 at 1:15 pm

#100 Sail away on 12.16.19 at 12:55 pm
#94 Ponzius Pilatus on 12.16.19 at 11:45 am
#93 Mississauga Mel on 12.16.19 at 11:03 am
#90 Sail Away on 12.16.19 at 10:30 am
—————————————-
“My wife and I moved here 14 years ago….
Life’s not bad here for an opportunist willing to act. There are niches everywhere.
It’s pointless to offer advice, though, because people always seem to know better…”
Like the blog dogs here who call Canada a lousy socialist place to live? Hey Stan Brooks, did you read Sail Away’s post? Care to offer a retort cowboy? Is Sail Away living in the same Canada you are Stanley?
————————————–
I believe Sail Aways’s story once he reveals his real name.
Until that he/she/it is just another bragger sailing the internet.
—————————————

Ponze, send me your real name, address and contact at [email protected] and I’ll share the same.

Quid pro quo, my friend.

#103 Sask to AB on 12.16.19 at 1:19 pm

Excellent post.
Really appreciate all the charts.
Looks like we are hooped……..

F56AB

#104 Sonny on 12.16.19 at 1:48 pm

Hello all….would love to hear feedback on this.

https://ca.finance.yahoo.com/news/cra-could-crack-down-on-airbnb-hosts-105513243.html

#105 Mississauga Mel on 12.16.19 at 2:06 pm

#99 YVR Expat on 12.16.19 at 12:41 pm

“That’s not very common and you know it.”

Have you ever read Stanley Brooks comments?? To name just one. Or Smokin Man who fled our socialist haven for SoCal…

#106 Remembrancer on 12.16.19 at 2:18 pm

Post-election economic status part deux…

Transparency reporting LMAO…

This reads like an us vs. them ploy throwing the public sector workers (& pensions) under the bus along with sprinkling their debt vs GDP ratio pixie dust – all for it as long as our ministers of the crown get a line or two of their own highlighting their program mandates extra funding costs & perks as well rather than distracting us while the trust fund babies party on at our expense…

https://www.ctvnews.ca/politics/federal-deficit-set-to-remain-higher-than-estimated-economic-update-shows-1.4731508

…They will also be looking into a new transparency reporting measure to reflect the deficit in a way that indicates how much of the debt is attributable to the government’s obligations in things like public sector pensions and benefits, versus debt created because of government-specific spending measures…

#107 AGuyInVancouver on 12.16.19 at 2:25 pm

#76 Mississauga Mel on 12.16.19 at 6:03 am
#64 Shawn Allen

“Whatever China’s growth is, it is truly staggering.”

Correct Shawn. The 805 million figure should be adjusted to having left poverty. The middle class by NA standards is probably around 300 million which is still a staggering number. I know first hand because for the past decade I have seen 1000s of Chinese students coming through our international school in Toronto. The auto sales should give you the clue that the number is indeed large…
_ _ _
Great and in the process they destroyed the planet. The grap showing exploding green house gas emissions fits perfectly with China’s economic expansion.

#108 Remembrancer on 12.16.19 at 2:26 pm

#104 Sonny on 12.16.19 at 1:48 pm
Hello all….would love to hear feedback on this.

https://ca.finance.yahoo.com/news/cra-could-crack-down-on-airbnb-hosts-105513243.html
—————————————————–
I’ll bite, I’m in a mood…
The applicable tax form line is not “how much income do you feel like claiming?” its “how much income?”. As such, too bad, if you are running a rental you get to claim legit expenses against income – the same should apply to AirBnB and any other for profit that hides under a “sharing economy” cloak…

#109 Stan Brooks on 12.16.19 at 2:30 pm

It is getting crowded in the labour/debt slaves camp.

Can’t afford a house? Split this one with your friends

https://ca.finance.yahoo.com/photos/cant-afford-a-house-split-with-your-friends-164959521/zoocasa-180603710.html

Deficit is much larger than expected this year, will it hit 40 billions next year?

https://ca.finance.yahoo.com/news/liberals-fiscal-shows-billions-more-155738822.html

And that with close to zero rates and ‘booming’ economy, rich, wealthy and prosperous middle class (must be, we have a ministry of it)

I don’t doubt Sail Away. I also don’t doubt that some are actually winning the Lotto while the majority of the idiots are just playing it.

It just ain’t representative of the situation, while inflation and non-retirement is.

Cheers,

#110 45north on 12.16.19 at 3:25 pm

Eight charts Château Bill will not be sharing with you.

He has them but he’s not sharing. They add up to economic disaster.

It looks like we’re headed for a recession. In large measure, thanks to Justin Trudeau and the Liberals. The next move is obvious but they won’t do it because of this carbon tax thing. Build the pipeline to Ontario as well as the refineries to supply Ontario with a reliable source of fuel and petro-chemicals.

#111 Tony on 12.16.19 at 3:33 pm

Re: #73 John on 12.16.19 at 2:18 am

The next phase will be the destruction of the U.S. dollar shortly after the 2020 election.

#112 crowdedelevatorfartz on 12.16.19 at 3:53 pm

@#102 Sail Away
“Ponze, send me your real name”
++++

Ponzius Pilates IS his real name…..why do you think he’s so angry…..

#113 crowdedelevatorfartz on 12.16.19 at 4:03 pm

@#106 Remembrancer
“This reads like an us vs. them ploy throwing the public sector workers (& pensions) under the bus along with sprinkling their debt vs GDP ratio pixie dust.”
+++++

Well …you have to admit.

Taxpayer subsidized , govt employee pension plans are a pretty easy, juicy target.
Especially when the average , private sector worker, has no pension plan, minimal medical and dental, and minimal savings….. and is asked to pay more in taxes year after year….
Yep.
The public sector pension gravy train will definitely become an election issue down the road as our deficit budgets grow ever larger….
Just wait for a populist leader to channel all that voter rage against the public sector unions and their unsustainable, subsidized pensions….. “the taxpayer OWES us because we worked HARD for our pensions”
…… r-i-i-i-i-g-ht.

#114 Just snootin' on 12.16.19 at 4:16 pm

When can we expect
Trudeau’s
Helpful
Economic &
Fiscal
Talk?

The job of the new Middleclass Spin Merchant will be to suppress revolt. Remember, as you trundle to the salt mine, you are doing your patriotic duty paying for all of this.

#115 Malio on 12.17.19 at 10:26 am

More spin on CBC’s news site to plump real estate, which is still the most common approach by Canadian media:

https://www.cbc.ca/news/business/canada-property-bubble-1.5394421