The dodgy idea

So remember that crazy idea outgoing central bank boss Poloz was selling in a recent interview? In order to make houses more affordable, he asked, why not let private investors easily buy a hunk of other people’s equity? Families could live in homes they had less-than-100% ownership of (and lower costs) then hand over a share of the profit to an investor when they sold.

This echoes Ottawa’s current mutual-equity mortgage, of course, in which CMHC shares a deed in return for footing part of the down payment (more on this turkey in a moment). The benefit is that people can move into houses they could not otherwise afford. The downside is this increases demand, further turning houses into investment assets, pushing prices.

Anyway, Poloz is apparently just aping an existing reality in the US.

Check out Unison.com, a San Francisco outfit which is doing exactly this – both for new homebuyers and existing owners. By the way, SF is like the GTA or the LM – home to some of the most expensive residential real estate on the planet, where Mills have been totally shut out as prices appreciated wildly. So, no coincidence this is Ground Zero for the shared-equity experiment.

Here’s how it works: Unison will match a buyer’s down payment up to 20% of the property’s value, or a max of $500,000 (US). The buyer then gets a mortgage for up to 30 years from one of the partner lenders, paying an origination fee of 2.5% plus the usual closing costs. After three years the owner can request an appraisal and buy out Unison’s share of the house. The option is to wait until it’s sold, or 30 years – whichever comes first – before handing over the company’s share of the appreciation. There are no payments to make on the loan. No interest, either. And because the down payment was twice the size the buyer could afford, the mortgage is smaller. If the house goes down in value, Unison takes the hit with you. If you pay them off earlier, the company collects what it originally invested.

There’s more. The company will also take over 17.5% of an existing owner’s equity, up to $500,000, in exchange for cash. It’s like a reverse mortgage, but without interest piling up, making the debt ever-larger. Upon a sale, or after three decades, Unison gets its share. To play, you need a debt-to-income ratio of 50% or less, and at least 20% equity in the real estate.

The downside, of course, in making expensive houses easier to buy is that they will stay expensive. In fact, they’ll probably get even more unaffordable. That’s what happens when demand is facilitated. By opening residential real estate to its investors – mostly pension funds and university endowments – Unison helps commoditize residential real estate, turning it into a truly investible asset. Hard to see how this ends well.

Meanwhile whazzup with T2’s vaunted shared-mortgage thingy?

You may remember it as a centerpiece of the Libs’ housing policy in the last campaign – goosing the upper price limit to $800,000 in a program designed to provide moisters some free down payment money. The budget allocated was $1.25 billion. In return for giving over the deposit, CMHC would take equity and a share in the real estate gains.

Well, the kids ain’t buying it. There were only 3,000 applications for the so-called incentive program last year, for $55 million in funding. Veteran mortgage broker and blogger Rob McLister tells us why this was a truly bad idea…

  • It helps almost no one buy a home (due to the overly strict qualification criteria)
  • was ill-conceived (with virtually no industry consultation)
  • was a government subsidy for already qualified homebuyers
  • was hard to understand for mortgage advisors and consumers alike, and
  • made it difficult for borrowers to quantify the benefit (largely because CMHC didn’t initially launch a useful calculator for people to run scenarios).

Worse, it makes houses cost more. Just another example of politicians trying to increase demand for real estate at a time when too much of it is chasing too few listings. Mr. Market would sort a lot of this out if left on its own, especially if we stopped letting people buy houses with 20x leverage and taxpayer-funded insurance. Yikes.

Whether it’s San Fran, 416 or YVR, the idea of sharing residential real estate equity is a dodgy one. We don’t need more stimulus. And now Liberal MPs are getting restless about gutting the mortgage stress test. Will Chateau Bill hold firm, or cave to his leader and caucus?

Are you kidding?

Maybe the feds should do something about this, instead: TD will next month become the first bank to charge interest on interest. If you fail to pay all of your credit card bill, including the interest charged on unpaid balances, The green guys will levy new interest charges (at godawful rates) on that outstanding interest.

Says a notice Dorothy received this week. “We are adding your unpaid interest charge to your balance at the end of each statement period. As a result, we will now charge interest on unpaid interest.”

She immediately cut up Bandit’s $50,000 limit Golden Rewards Cashback Classic Insider Avion Special Breed Stud Privilege Affinity TD Visa. He may also pee on the branch.

 

123 comments ↓

#1 Camille on 01.29.20 at 3:56 pm

The housy thing sort of sounds like a leveraged derivative, maybe not really? Or is it a drug to keep buyer’s buying, juice?
But in the end, its house inflation, but measured inflation never creeps up above 2%.
Lets put housing in with asset price inflation, from liquidity. If it stops, correction.

#2 Penny Henny on 01.29.20 at 4:12 pm

paying interest on the interest only makes sense.

#3 UncleRico on 01.29.20 at 4:13 pm

first!

#4 Sold Out on 01.29.20 at 4:14 pm

#138 Sail away on 01.29.20 at 2:10 pm
#134 James on 01.29.20 at 1:54 pm

….a virus has no citizenship and it has no concern for country borders so live with it. Or not! Don’t label the Chinese for this.

—————————-

If it turns out that the virus mutated from swine or birds, don’t be calling it ‘swine flu’ or ‘bird flu’. Don’t even call it flu, because flu has a negative connotation.

Maybe ‘coronavirus infection originating in Asia from swine and/or birds, who are not to be blamed for the origination’

#139 Sold Out on 01.29.20 at 2:19 pm
#133 Sail away on 01.29.20 at 1:46 pm
#129 Barb on 01.29.20 at 1:18 pm

Re viruses/bacteria…

Stop shaking hands.
Politely state that you don’t want to pass on YOUR germs.
Nobody offended.

—————————–

Just shake hands. If you get sick, deal with it.

Don’t be a wuss cringing and shrinking from every possible risk. People like that are annoying.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

No, what’s really annoying is when people think that their pet peeves supercede the needs of the immuno-compromised and their care-givers. Keep your germs to yourself, you inconsiderate dolt.

#140 Sail away on 01.29.20 at 2:45 pm
#139 Sold Out on 01.29.20 at 2:19 pm
#133 Sail away on 01.29.20 at 1:46 pm
#129 Barb on 01.29.20 at 1:18 pm

Stop shaking hands.

—————————–

Just shake hands. If you get sick, deal with it.
Don’t be a wuss cringing and shrinking from every possible risk. People like that are annoying.

———————————

No, what’s really annoying is when people think that their pet peeves supercede the needs of the immuno-compromised and their care-givers. Keep your germs to yourself, you inconsiderate dolt.

——————————–

Aristotle says, “Tolerance and apathy are the last virtues of a dying society”

xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

I should’ve known; that’s not a quote from any ancient Greek classic. Usually found on hard right/religious right sites, typically cited to support racist views.

https://sententiaeantiquae.com/2018/09/29/racists-use-this-fake-quote-from-aristotle/

#5 Doug t on 01.29.20 at 4:17 pm

Dontcha just LOVE our banks – gawd forbid if their massive profits should ever take a dip – my wife and I recently said goodbye to CIBC – took our small egg (1.4 mill) out of that sad institution and switched to a credit union – we are getting more attention there than the last 10 years at CIBC – and the CIBC didnt even blink, not even ask us why we were leaving –

#6 JacqueShellacque on 01.29.20 at 4:19 pm

Since Garth’s rule is that only those who swap fluids should share a mortgage, this seems like the resulting contagions won’t simply be financial

#7 Matt on 01.29.20 at 4:25 pm

Is charging interest on interest even legal?!

#8 meslippery on 01.29.20 at 4:31 pm

Amazon to the rescue.
Drop some in your yard and air b&b to riches.
https://www.amazon.com/MODS-40-Foot-Tiny-Home/dp/B073FZ8PP9/ref=pd_rhf_ee_p_img_1?_encoding=UTF8&psc=1&refRID=FCMVW3ZWC6GGTC3PEHPC

#9 Sail away on 01.29.20 at 4:31 pm

That company could make a lot of money, although verging on unethical. Charge origination, management, and other fees, and have investors take all risk.

The marks, whoops- investors, are always rabid to get into real estate.

Maybe I’ll put together a business plan since somebody is going to do it… Let me talk with my broker buddy who does private REITs (something you should never invest in, by the way).

#10 crazyfox on 01.29.20 at 4:33 pm

Yup. Libs laid an egg on the lets goose RE sales with the free money for kids with strict regs thingy, where did they come up with that one? It just sounds so overbearing parental to me. I will, of course, not imply a specific gender in this risk averse “me too” world.

And interest on interest? Thieves! 20% goes to 30% penalties if you hazard more than one late payment and now this, bankers may has well put masks on when they greet people ’cause they are out to rob you. How many times have we been over billed with interest penalties even though CC payments are on time? Most of us don’t catch it but they do it and they do it intentionally because they usually get away with it. It simply should not happen in this digital age and yet. Thieves!

#11 SoggyShorts on 01.29.20 at 4:35 pm

#89 Ray on 01.28.20 at 9:46 pm
#54 Ray on 01.28.20 at 7:20 pm
#48 Nonplused
——-
In less than a decade, it will be illegal to drive your own car.
**********************
You’re joking, right? Tell me you don’t actually think something so ridiculous.
Less than 10 years from now the government will confiscate ~20 million cars? Force you to scrap them?
Think.
——–
Autonomous Electric Robo taxis will happen. The economics are too compelling. Being able to drive your own vehicle will also become illegal after wards. Maybe ten years is optimistic. Maybe it isn’t. This will be an exponential growth process, fueled by the merger of AI,G5, cheaper computing and memory chips, cheaper renewable energy managed with mega batteries, cheaper and better batteries, and the final realization that climate change is a real and present danger. The oil industry has reached peak demand.
*****************************
Let’s imagine for a moment you are right, how would it happen? There are only 2 possibilities
1. The government did it without warning, suddenly on the first Monday of 2030 all gas-powered vehicles are illegal. Break out the pitchforks.

2. The government gives warning that a gas-powered be illegal in 5,10 or even 15 years what would that do to dealerships and all jobs related to them? Also anyone with a solid car that still has a good 10, 15, or 20 years on it? Break out the pitchforks.

“Optimistic” indeed.

The only realistic end of gas-powered is on the sales side:

I can see a forced sale of xx% electric cars by dealerships starting soon and increasing to 100% in ~15 years, but no way in hell will that mean existing cars are taken away.

#12 Entrepreneur on 01.29.20 at 4:38 pm

Loans on houses or just I say House-Hotels, forget the hard-working middle class, a new monopoly game.

#13 Sail away on 01.29.20 at 4:39 pm

#4 Sold Out on 01.29.20 at 4:14 pm

I should’ve known; that’s not a quote from any ancient Greek classic. Usually found on hard right/religious right sites, typically cited to support racist views.

————————–

Wow, that was a short path from refusing to shake hands to racism.

Continue if you must into xenophobia, genocide and psychotic homicide, but you’re making me uncomfortable.

#14 Shirl Clarts on 01.29.20 at 4:39 pm

TD could have probably gone ahead without the letter and no one would have noticed. I doubt anyone even knows (or cares) how interest is calculated. It’s 19.99%!!

But I’m more surprised to hear you carry a credit card balance. We simply couldn’t afford to do that in our household.

#15 Montrealer on 01.29.20 at 4:41 pm

Shared-equity programs already exist in Montreal for first-home buyers, sponsored by a non-for-profit org linked to the city.
See https://accescondos.org/en/exclusive-option/

#16 Linda on 01.29.20 at 4:44 pm

Thanks for the laugh of the day with the dog poster:)

Not surprised the equity share of mortgage idea is already alive & kicking in the USA. Eventually I can see this blight spreading – after all, it is the ‘sharing economy’. Plus 3,000 applications for the CMHC program is 3,000 too many. Eek!

As for the interest on interest, I had thought that was already a thing. Hence those lovely statement on the credit card bill that says ‘the estimated time to pay your New Balance in full if you pay only the Minimum Payment each month is 57 year(s) and 2 month(s).’ (as per our last CC statement). Needless to say, we pay that puppy off in full each month. Will be interesting to see if the estimated time increases or not over the next few statements, since one must suppose that if this policy is new then the estimate will take interest on interest into account when providing the estimate.

#17 SoggyShorts on 01.29.20 at 4:45 pm

There’s more. The company will also take over 17.5% of an existing owner’s equity, up to $500,000, in exchange for cash. It’s like a reverse mortgage, but without interest piling up, making the debt ever-larger. Upon a sale, or after three decades, Unison gets its share.
***************************
This actually sounds really good…I mean it won’t do anything for prices(except maybe make them even worse), but for boomers in nice houses, it would be great for them to be able to pull out a couple hundred grand interest-free for cash flow or diversification. It’s even better than a HELOC let alone a reverse mortgage.

Hey Millenial Realist, is this the boomers getting run over like you promised? hahaha

M40 AB

#18 Shawn Allen on 01.29.20 at 4:45 pm

Interest on Interest

Don’t banks and everyone always charge on interest on interest not paid by the due date?

I have a TD Visa and did not see any notice of such a change… but maybe it got by me in the fine print.

If you pay off the credit card monthly by the due date there is never any interest charged. You get an interest free loan for up to about 50 days but averaging more like 25 days? Are they eliminating that interest free period somehow.

I’m confused as to what the change is.

#19 Duffy on 01.29.20 at 4:48 pm

Be sure to give Bandit an extra big drink of water before taking him out to do his banking business.

#20 kommykim on 01.29.20 at 4:50 pm

RE: TD will next month become the first bank to charge interest on interest. If you fail to pay all of your credit card bill, including the interest charged on unpaid balances…

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

My credit card also provides an extended warranty for most items bought with the card except, airplanes, cars, motorcycles, etc. I noticed that they added drones to that list in their latest cardholder update which struck me as kind of funny. I mean, how many drone crash claims did they get, for this to become an issue?

#21 Shawn Allen on 01.29.20 at 4:51 pm

Interest on Interest

I guess this comes into play if you occasionally miss the deadline but then pay off the credit card bill in full. A change to how much interest will appear on your next bill and a change to when you get back to paying no interest?

Anyone not paying off the card in full most months was surely already fully paying interest on interest? Or are even those poor SOBs getting hit with even more interest?

#22 45north on 01.29.20 at 4:53 pm

So remember that crazy idea outgoing central bank boss Poloz was selling in a recent interview? In order to make houses more affordable, he asked, why not let private investors easily buy a hunk of other people’s equity? Families could live in homes they had less-than-100% ownership of (and lower costs) then hand over a share of the profit to an investor when they sold.

you first have to realize that being the boss of the central bank puts him in the company of people who deal in crazy ideas as a matter of course. For instance the administrators of the European Central Bank who have put in place negative interest rates.

#23 Sold Out on 01.29.20 at 4:54 pm

#13 Sail away on 01.29.20 at 4:39 pm
#4 Sold Out on 01.29.20 at 4:14 pm

I should’ve known; that’s not a quote from any ancient Greek classic. Usually found on hard right/religious right sites, typically cited to support racist views.

————————–

Wow, that was a short path from refusing to shake hands to racism.

Continue if you must into xenophobia, genocide and psychotic homicide, but you’re making me uncomfortable.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Deflect, project, infect – your basic MO. Take it up with the website that outed you. Don’t shoot, or sneeze on, the messenger.

#24 The Wet One on 01.29.20 at 4:58 pm

To be fair Garth, given this:

“It helps almost no one buy a home (due to the overly strict qualification criteria)”

Perhaps T2 is stealth listening to you and is only aiming to get elected with B.S. promises that actually do little to make things worse than they are but still get the Libs re-elected to office.

Or is that completely and totally impossible?

Just a thought…

#25 Linda on 01.29.20 at 5:01 pm

About that interest on interest policy. Last I heard, it is legal in Canada to charge up to 60% interest. So the interest on interest policy presumably doesn’t (as yet) cross that threshold. What I’m wondering is if it could in theory get around the 60% limit. Would interest on interest be treated as a separate entity or would it be cumulative? So say credit card companies did hike their card rate to the maximum 60%. Could they still charge interest on interest (up to 60% on top of 60%) or would they be limited to 60% in total?

Reason I’m asking is that I’ve read about crackdowns on payday loan shops effectively charging far more than 60% interest on the original loans. I’ve little doubt that despite those publicized cases that the practice continues – most of the people who entered into the clutches of these firms probably haven’t realized just how much they over paid so haven’t made a formal complaint. One wonders if credit card companies are simply joining a party that should have been shut down long since.

#26 Sail away on 01.29.20 at 5:09 pm

#13 Sail away on 01.29.20 at 4:39 pm
#4 Sold Out on 01.29.20 at 4:14 pm

I should’ve known; that’s not a quote from any ancient Greek classic. Usually found on hard right/religious right sites, typically cited to support racist views.
————————–

Can I just agree that I won’t ever try to shake your hand, and we’ll leave it at that?

#27 Shawn Allen on 01.29.20 at 5:10 pm

Who Pays Credit Card Interest

Not the rich or the better off. We pay pay our credit card bills off monthly (using lower cost borrowing if need be) and avoid credit card interest. We scoop gold card reward points.

The poor pay credit card interest and lots of it.

Ironically enough: It costs a lot on money to be poor.

#28 Juve101 on 01.29.20 at 5:14 pm

Interest on Interest – isn’t that simply compound interest? I don’t get the novelty here, this coming from Garth I must be missing something!

#29 jess on 01.29.20 at 5:15 pm

dodgy can make a lot of $$$ for the few

too-big-to-fail, too-big-to-jail, too-big-to-regulate and too-big-to-manage

https://bettermarkets.com/sites/default/files/Goldman_Sachs%27_20-Year_RAP_Sheet_Jan-28-2020.pdf
===========

On January 22, 2020, Better Markets, joined by two consumer protection organizations, filed an amicus (or “friend of the court”) brief in the United States Supreme Court in the case of Liu v. SEC, No. 18-1501. The issue presented is whether the SEC should retain its long-standing authority to seek federal court orders requiring fraudsters to give back or “disgorge” the money they have stolen from investors. Better Markets, the Center for Responsible Lending, and the National Consumer Law Center advocated strongly in favor of the SEC’s position, arguing that disgorgement is a long-standing, fundamentally fair, and extraordinarily useful tool that the SEC (and other agencies) need in their fight against securities fraud.

https://bettermarkets.com/resources/better-markets-and-prominent-consumer-protection-groups-file-amicus-brief-supreme-court

#30 Rico on 01.29.20 at 5:19 pm

So if investor ownership becomes possible and you think that real estate is highly valued, does it make sense to sell off a portion of your house?
I’m thinking I’d take $500K out of my house and invest it.

#31 Useless on 01.29.20 at 5:24 pm

This is like watching a car crash in slow motion. A country with the most personal debt in the world gets more taxes to raise the price of everything and government diddling in the housing market to make it unaffordable. Then municipalities raise property tax… Now banks need more. The cows teets are getting mighty sore.

But the idiocy continues. We don’t calculate real estate prices in inflation numbers and keep telling the sheep that inflation is low, keeping rates low. Oh and we count immigration with gdp…

You can’t make this stuff up.

#32 G on 01.29.20 at 5:40 pm

Hi #18 Shawn Allen, re: TD credit cards

I got the notice in the mail box this week.
Here are a couple thinks it said in part; beginning March 2020. (basically interest is go up to 25% & 28%. and they’re not giving you an extra 30 days to pay it.)

New:
If interest is charged, it is calculated daily balance of each transaction from the transaction date until that amount has been paid in full.
We add your unpaid interest charge to your balance at the end of each statement period.
As a result, we charge interest on unpaid interest.
was: if we do not receive the minimum payment within 30 days of the payment due date…

current:
interest rates will increase 5% to 24.99% on purchases and 27.99%on cash advances.
If we do not receive the minimum payment within 30 days of the payment due date…

New:
Interest rate will increase to 24.99% on purchases and 27.99% on cash advances if we do not receive the minimum payment before or on the payment due date and before the date on which we prepare your next monthly statement…

#33 yvr_lurker on 01.29.20 at 5:46 pm

The interest on interest is ridiculous given that already low fee cards charge 11.9% (when GIC’s are around 2%). Need to get a pack of dogs (and not just one) to pee on it and send the cut-up card to the president of TD. The only way I use my card is to pay in full every month so that I use it only to ring Avion points to be used for trips.

#34 Dog Thoughts on 01.29.20 at 6:06 pm

Had a talk with a fren about the ball.

The optimal strategy with the ball is follow the ball with your eyes.

Not with your heart.

#35 Linda on 01.29.20 at 6:07 pm

So, did some quick research via the mighty Google. The interest rate scoop is that 60% is the legislated annual permitted interest limit that can be charged in Canada – EXCEPT that pay day loan firms are EXEMPT from that rule. The pay day loan shops are regulated provincially & under the rules the annual legal rate they can charge their hapless clients ranges from the low end of 390% per annum (Alberta) to 650% per annum (PEI). There is a chart online showing rates per province if anyone wants to check out the cost in their part of the world. Depending on the province pay day loan shops can also charge additional fees (as if they need them) if funds borrowed are not paid back within the original loan period, which appears to be a standardized 62 days.

Bottom line is that pay day loans are financial apocalypse on steroids. Don’t go there. Seriously.

#36 Re-Cowtown on 01.29.20 at 6:15 pm

This whole shared/futures mortgage thingy sounds like a great way to take a prime investment, hypothecate it,(pledge the same asset to many borrowers; aka a Ponzi scheme) and turn it into a sub-prime hot mess. What could possibly go wrong?

#37 SoggyShorts on 01.29.20 at 6:16 pm

#23 Sold Out on 01.29.20 at 4:54 pm
#13 Sail away on 01.29.20 at 4:39 pm
#4 Sold Out on 01.29.20 at 4:14 pm

I should’ve known; that’s not a quote from any ancient Greek classic. Usually found on hard right/religious right sites, typically cited to support racist views.

————————–

Wow, that was a short path from refusing to shake hands to racism.

Continue if you must into xenophobia, genocide and psychotic homicide, but you’re making me uncomfortable.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Deflect, project, infect – your basic MO. Take it up with the website that outed you. Don’t shoot, or sneeze on, the messenger.
***************************
To be fair, when I googled that phrase there was ONE link to a guy who partially matched it with a white supremacist and hard right users.
Every other search on page one was about Aristotle.

You get more hits when you search “Are dolphins racist?”

#38 CJ on 01.29.20 at 6:18 pm

Thanks for the reminder Garth! Just called TD to cancel my credit card w/them. Got a whole spiel about how it’s not really interest-on-interest, they gave a pre-written analogy using a base of $100 and how it’s not really very much money, barely noticeable. That being said, they didn’t have an answer when I asked what I was getting for the new fees.

The agent did stress that ALL the major banks would be doing this in the very near future and it would become a new standard here. Thoughts?

-CJ

#39 PetertheSeparatistfromCalgary on 01.29.20 at 6:22 pm

Their is only one investment that many Canadians can get a tax free guaranteed double digit return on. Pay off you damn credit card balance.

No other investment in the entire universe rewards you with such a high, risk free return.

#40 With extrapolation ... on 01.29.20 at 6:40 pm

maybe we will see interest on interest on interest … not many would even notice I bet.

#41 I kept my unerpants on so you can't impeach on 01.29.20 at 6:43 pm

Hasn’t TD been the leader in doucebagery in the lending industry for sometime now?

#42 YouKnowWho on 01.29.20 at 6:45 pm

Which is the “least bad” Canadian bank right now?

#43 Captain Uppa on 01.29.20 at 6:51 pm

20x leverage is a yuuge exaggeration. I highly question that figure.

What else do you call 5% down? – Garth

#44 Tony on 01.29.20 at 6:54 pm

Foot traffic at Markville Mall as of today (afternoon) down about 70 percent. Aritzia empty. Monday foot traffic (afternoon) down about 40 percent. Tim Hortons foot traffic today down about 70 percent. Very few wearing masks.

#45 BlogDog123 on 01.29.20 at 6:54 pm

Hey, carrying a balance on your credit card, at 19, 26, or 29% is crazy. If you find yourself paying minimums on the card(s) month after month it’s time to review your whole spendy-earnings-how-the-hell-did-I-get-here strategy, if you even have a strategy.

No shame in downsizing your life, shared accommodation, get rid of the car(s), walk to work until you figure out how to climb out of that high interest debt mode you’ve been living.

But you’re probably not reading this blog, you’re watching the Cash-Money commercials on your new big screen TV wondering why you cannot earn big bucks.

#46 Ray on 01.29.20 at 6:55 pm

#11 SoggyShorts on 01.29.20 at 4:35 pm:
The government may not have to get involved to eliminate self driving vehicles. The insurance companies just may no longer insure self driving vehicles any longer.

#47 JSquared on 01.29.20 at 7:00 pm

Ever notice how long it takes for purchases & payments to show up on your credit card online accounts? How in today’s digital age are consumers not allowed to see their balance in real time? I purposely monitored my card purchases over a month. Some took up to 10 days to show up on my online statement. Such a joke. Obviously the banks do it on purpose. I can’t imagine trying to keep track in my head where my limit is at if I used my credit card frequently like a lot of people do.

#48 COW MAN on 01.29.20 at 7:01 pm

Sir Garth:

They are all the same. BMO Investorline charges 22.9% on cash account balances that go negative on a transaction, even when the replacement funds have been surrendered and the order filled. In response to a complaint I was told that the charge was ended on the settlement date. They pay 1.75% on their MMF AAT770 and charge 22.9%. Own the bank don’t put your money there, our host might say.

#49 Tony on 01.29.20 at 7:02 pm

Sounds like the housing model in the United Kingdom where its usually a 60/40 split between you and the government if you can obtain a mortgage. You can buy pieces in 10 percent apiece off the government at current prices in the future. The only thing this does is stop towns and cities from turning into ghost towns and ghost cities.

#50 Nonplused on 01.29.20 at 7:23 pm

“We are adding your unpaid interest charge to your balance at the end of each statement period. As a result, we will now charge interest on unpaid interest.”

I thought that’s how loans work. When you make a payment it is applied first to interest and then to the outstanding principle. But in the event your payment doesn’t cover even the interest then it makes sense to me that the outstanding interest gets added to the outstanding principle, in which case interest applies to it. At least that’s how it would make sense to me. Maybe TD wasn’t doing this before based on the premise that people who pay the “minimum payment” are paying the interest every month, plus a tiny sliver of the balance? If so, what this change means is that people who don’t pay the minimum payment every month are becoming more and more of a problem, and they feel they need to be compensated for the money they aren’t getting. If so, I don’t think it will work as all it will do is drive the account towards the credit limit even faster. But anyway it makes sense to me. If you owe them $20 in interest and you don’t pay it currently why shouldn’t they also expect interest on the arrears? That is exactly how a HELOC works if you don’t pay. They add the interest to the principle. It is also the principle behind the math of a dreaded reverse mortgage.

Interest always compounds. This is why Einstein called it the “8th wonder of the world”. He understood the exponential nature of it. Even in the case of a mere bond portfolio that includes no compounding, it is possible to produce the effect by clipping your coupons and reinvesting the money.

So I believe, doing a little mind reading here (always dangerous), is that what TD is really trying to do is reduce the amount of credit card accounts that are “delinquent” due to unpaid interest by making interest something you can pay with that same credit card, and thus they do not have to shut the account down. Normally when a credit card issuer shuts a card down they never see another payment unless enforced through a court, which is expensive. It is unsecured debt. The can’t come and take away that big screen TV and the drinks already consumed at the bar. It’s not like a car loan where if you don’t pay one morning you come out of the house to go to work and the car is gone, or if you don’t pay your mortgage the bank hires someone to trash out your belongings and changes the locks.

So this is clearly (if I have done a good job mind reading) a bad sign. It means that TD is finding it necessary to offer a mechanism to keep accounts current when the minimum payment has not been met. They are probably doing so to avoid writing off the loans and pushing them to collection agencies. This is not a good sign.

#51 SoggyShorts on 01.29.20 at 7:31 pm

#46 Ray on 01.29.20 at 6:55 pm
#11 SoggyShorts on 01.29.20 at 4:35 pm:
The government may not have to get involved to eliminate self driving vehicles. The insurance companies just may no longer insure self driving vehicles any longer.

****************
Right, because insurance companies don’t like profit…
Rates may go up, but as long as there is private insurance and at least some competition they’ll insure anything.

Did you know that the half-time half-court shot for $50,000 at basketball games in insured?
Mariah Carey’s voice? Insured.
Betty Grable’s legs? Insured.
F-150s in 2030? Insured.

#52 under the radar on 01.29.20 at 7:32 pm

#9 sail away Jan 28/
“Also, there’s no such thing as a ‘family TFSA’, so that doesn’t make sense. Registered accounts are specific to a person.”
I share or “syndicate ” my, my wifes’s and two adult children’s separate TFSA in one mortgage. in other words each TFSA takes a percentage interest in one mortgage.
Do some homework , look up self directed plans Canadian Western Trust or Olympia Trust co.

#53 Shirl Clarts on 01.29.20 at 7:44 pm

#47 JSquared on 01.29.20 at 7:00 pm
Ever notice how long it takes for purchases & payments to show up on your credit card online accounts? How in today’s digital age are consumers not allowed to see their balance in real time? I purposely monitored my card purchases over a month. Some took up to 10 days to show up on my online statement. Such a joke. Obviously the banks do it on purpose. I can’t imagine trying to keep track in my head where my limit is at if I used my credit card frequently like a lot of people do.
^^^^^^^^^^^^^^^^^^^^^^
It’s no joke. When you activated your credit card, you agreed to the banks terms and conditions. Regardless if you can remember your purchases or not, a revolving line of credit is your responsibility to pay back on time, as per the agreement.

Before the internet, you still had to repay each purchase within 21 days or risk accruing interest. Whining that you didn’t get your statement in the mail works about as well as saying the dog ate your homework.

Don’t expect every single transaction to appear instantly. The system is too complex to keep track of all of your unconscious spending habits in real time.

I look at my cc statement as a courtesy provided by the bank. I pay back both current and PENDING amounts every 2 weeks. I haven’t paid any cc interest since 2001. I also developed this habit out of pure hatred for the banks high interest rates until one day I decided to take back control. I realized the interest was my fault, not the banks.

#54 Nonplused on 01.29.20 at 7:53 pm

#20 kommykim

If you have a teenage son, you would know that a drone or any other flying Styrofoam toy lasts about 1 hour on average. They are more expensive per hour that ski lift tickets. Actually about 8 times more expensive.

#30 Rico

I don’t know if the intention is to ever make these “equity share” programs into something existing homeowners can exercise, but if they do your plan might not be a bad idea. Certainly better than a reverse mortgage or a HELOC. It’s all about making predictions, which is famously hard especially with regards to the future. But if you could “sell” $500,000 of your house and still live in it with the only expense being half of whatever capital gains you experience, which could be zero, and earn 7% in a Garth ™ fund, versus borrowing $500,000 at 2-3%, which would make more sense? The capital gain is not assured.

Also, since all the talk now is about taxing capital gains on primary residences (a truly stupid idea), maybe taking the cash now isn’t such a bad idea? Surely you will still pay taxes on your portfolio, but at least the portfolio will generate the revenue to pay the tax. A house does not. No matter how much it goes up in price it is still just a house. The change in price of a house (primary residence) reflects inflation not a true capital gain. Houses are not investments. They are liabilities.

So ya I would say if this becomes a thing where you can sell part of your house and not pay any interest or rent to live in it and they impose a capital gains tax on primary residences, you are probably on to something.

Heck I don’t see why you wouldn’t sell the whole damn house to such a stupid investor, who only wants capital gains. This, I accidentally just did, was a test of the extremes, which proves the concept is flawed and will not work. What I just tested was the extreme where corporations are buying 100% of the house to let someone live in it rent free, only hoping to capitalize on capital gains. That’s tulip territory. But it means the concept is deeply flawed and indicates an extreme bubble. These companies would be investing solely on the premise that prices will continue to rise and no return is necessary. That is, frankly, crazy. So ya if it becomes possible take the money and invest in things that pay a dividend.

#55 Genesis II on 01.29.20 at 7:54 pm

#43 Captain Uppa on 01.29.20 at 6:51 pm

20x leverage is a yuuge exaggeration. I highly question that figure.

**What else do you call 5% down? – Garth**

Financial illiteracy on display! Hey, Captain, you can ‘question’ all you want but math is math – and cares not about your feelings!

#56 Down and Out on 01.29.20 at 8:03 pm

#11 Electric vehicles will easily fall by the wayside when road taxes are applied just like their gasoline cousins and remember no price wars on Kilo-watts like gasoline since the government controls the grid price which by the way cannot handle even 20% of the fleet being electric without huge upgrades and guess who pays for that ,I can see the day EVs will be more expensive to run that IC engines then we will see who is a committed EV owner .The one reason big auto companies are rushing to EVs is they are really cheap to build no expensive IC engine and transmission plants and with companies like Tesla setting a nice high starting price not reflecting cheaper manufacturing or government funding and the big boys in auto making have to jump in .It is fun to watch this play out but could spell the end of many auto jobs before the market for EVs finds it rightful place without government interference kind of like the housing market.

#57 Doomsday prepper on 01.29.20 at 8:45 pm

Don’t expect every single transaction to appear instantly. The system is too complex to keep track of all of your unconscious spending habits in real time.
^^^^^

Then why do debit card purchases show up immediately?
Banks definitely try and hold off posting CC purchases hoping consumers will screw up.
Similarly, bell/rogers et al will intentionally overcharge on billing by small amounts on millions of accounts, knowing that no one wants to spend 4 hours on the phone trying to recover a buck fifty… do this to millions of users and reap huge amounts. All they have to say is “woopsy, clerical error!” Sorry
Bend over.

#58 Ronaldo on 01.29.20 at 9:01 pm

#27 Shawn Allen

The poor pay credit card interest and lots of it.

Ironically enough: It costs a lot on money to be poor.
——————————————————————
Do they ever. Check out Hudsons Bay interest charges.

https://hudsonsbaycredit.capitalone.ca/docs/Cardholder_agreement_EN.pdf

#59 Doug t on 01.29.20 at 9:05 pm

Friend of mine did an interesting thing a couple years ago and bought 8 ounces of gold on his credit card to get the points – paid off the cc couple weeks later with cash from his crappy low interest savings account and used the points for a trip – forward to this month he sold the gold for cash and made a very nice profit from original purchase AND enjoyed a holiday on points hmmmmmmm

#60 Allen Mernick on 01.29.20 at 9:21 pm

I am the owner of Inglewood arms. This idea that residents are being evicted is an outright lie.
I’m selling the property to them, conditionally upon a development agreement with the City.
I chose to deal with Minto because I know them to be ethical builders, and their determination to take care of our residents.
They are in discussions with the City regarding financial compensation, relocation services, and any other aid needed.
After operating the Inglewood for 36 years,it’s certainly not our way to throw vulnerable people on the street without financial or housing support.
Lies are being told by poverty pimps, Black Lives Matter and social justice warriors to justify their existence.
If the deal comes undone, we will simply continue operations as usual.
As landlords we are not,unlike the opposition, using people as pawns.
Again. They will get financial compensation, rehousing support, and a right of return to the new building.
Let’s tell the truth, and not a pile of politically motivated lies coming from Justin Trudeau and his PC babies.
How is it that nobody from the councillors office has contacted me.
Allen Mernick.

#61 Dog Breath on 01.29.20 at 9:31 pm

On the coronavirus front, it looks like all those sweet, adorable little tykes are a serious threat to adults. Apparently young children can have the virus without ever showing any signs of infection. Young children are the current version of Typhoid Mary, Yikes!!

https://www.zerohedge.com/geopolitical/children-stealth-coronavirus-infections-raise-fears-community-outbreaks

#62 ASho on 01.29.20 at 9:34 pm

I really hope that the backlash for TD doing this is so large that they backpeddle and apologize and fire the cigar smoking degenerate exec that proposed this to make their cards balances look bigger. This would hopefully stop the rest of the banks following suit. We don’t need the extra cost on the most at risk who carry a balance.

#63 NoName on 01.29.20 at 9:36 pm

#35 Linda on 01.29.20 at 6:07 pm

Bottom line is that pay day loans are financial apocalypse on steroids. Don’t go there. Seriously.

We did briefly touched on those other day, i would like to have them stay open, not for the payday loan part, but sending money to extended family overseas, they are cheapest plus they give discount card.

If they gone sending equivalent amount thru bank 3-4x more expensive and money stuk in limbo for weeks…

#64 Shawn Allen on 01.29.20 at 9:47 pm

The agent did stress that ALL the major banks would be doing this in the very near future and it would become a new standard here. Thoughts?

-CJ

****************************
Collusion and weak regulation.

And customers don’t shop around enough.

Royal Bank has been earning about 30% ROE on its personal and commercial business for years. They actually spell this out in the annual report and no one notices.

#65 NoName on 01.29.20 at 9:57 pm

And for masks, mukus, deadly disease and handshakes all that started late november, dec 8 first boots on a ground because nvoc. i’ve been following if since late dec… and i am no epksert like some but i may know thing or two.

#66 Bob Dog on 01.29.20 at 9:58 pm

Funny how your corrupt criminal government will consider any and every possible solution to a nation housing crisis except reducing the rate at which they migrate people to Canada. The population has been thoroughly conditioned over decades to accept without question a policy of mass migration.

Canadians exist for the benefit of corporations foreign and domestic and the vermin in Ottawa are committed to providing and endless supply of people will to work for peanuts

#67 Dutchy on 01.29.20 at 10:06 pm

Why is it such a great idea for “investors” to invest in real estate and why should we all rent from them ??

#68 Niagara Region on 01.29.20 at 10:20 pm

“Bank of Canada to Begin Purchasing 10 Year Mortgage Bonds”
https://stevesaretsky.com/bank-of-canada-to-begin-purchasing-10-year-canada-mortgage-bonds/

#69 Westcdn on 01.29.20 at 10:32 pm

First Spinmaster dies and now Real Matters explodes to the upside – am I lucky? Yes and no. I will lose my shirt one day but I enjoy pounding my chest for now.

#70 bdwy on 01.29.20 at 11:20 pm

#20 kommykim on 01.29.20 at 4:50 pm

I noticed that they added drones to that list in their latest cardholder update which struck me as kind of funny. I mean, how many drone crash claims did they get, for this to become an issue”

—————-
ummm, errrrr, someone thought he was a bit of a hotshot pilot and lost at least 2 to high winds(they can blow away really fast!)
drone was not specifically listed on mastercard policy but aircraft was. no soup for you (me)!

#71 akashic record on 01.29.20 at 11:26 pm

Kevin O’Leary answers questions about cat or dog for CEO,
should I sell or not my house to pay off debt, and other stuff + guitar riffs :)

https://www.youtube.com/watch?v=6Xe7TCV5k4g

#72 Sail Away on 01.29.20 at 11:57 pm

#52 under the radar on 01.29.20 at 7:32 pm
#9 sail away Jan 28/

“Also, there’s no such thing as a ‘family TFSA’, so that doesn’t make sense. Registered accounts are specific to a person.”
I share or “syndicate ” my, my wifes’s and two adult children’s separate TFSA in one mortgage. in other words each TFSA takes a percentage interest in one mortgage.
Do some homework , look up self directed plans Canadian Western Trust or Olympia Trust co.

——————————-

Interesting, thanks. I’ll research it.

#73 Jager on 01.30.20 at 12:32 am

China’s economy is slowly grinding to a halt. Unofficial estimates place those infected at 100k. Life is indeed tenuous as this decades unfolding is demonstrating.

Corona Virus – The Lies and the Truths (Must Watch)
https://youtu.be/hSIt496d82s

Corona Virus Now A Pandemic…
https://youtu.be/pTWZPGzvJIo

Get Your Household Ready For Pandemic Flu (CDC)
https://www.cdc.gov/nonpharmaceutical-interventions/pdf/gr-pan-flu-ind-house.pdf

#74 Shirl Clarts on 01.30.20 at 1:00 am

#59 Doug t on 01.29.20 at 9:05 pm
Friend of mine did an interesting thing a couple years ago and bought 8 ounces of gold on his credit card to get the points – paid off the cc couple weeks later with cash from his crappy low interest savings account and used the points for a trip – forward to this month he sold the gold for cash and made a very nice profit from original purchase AND enjoyed a holiday on points hmmmmmmm
^^^^^^^^^^^^^^^^^^^^^^^^^^
It’s called “manufactured spending” and apparently been around for awhile.

Read about the killing these guys made buying coins from the mint on their credit cards, then depositing those coins in the bank to pay off the credit card all in the same day, while keeping the points.

https://www.cbc.ca/news/business/aeroplan-air-miles-amex-rewards-visa-mastercard-royal-canadian-mint-1.4390911

#75 Dr V on 01.30.20 at 1:08 am

59 Doug- I don’t see 8 ounces paying for a holiday.
Maybe a one way ticket to nowhere nice. Trust he declares the cap gains on the Au?

But what might pay? Try building a house (or 2 or…)
Heard this being done by builders years ago. Running $100000s through their card. They charge owners the “cost” but they get the benefits.

#76 Ponzius Pilatus on 01.30.20 at 1:20 am

#13 Sail away on 01.29.20 at 4:39 pm
#4 Sold Out on 01.29.20 at 4:14 pm

I should’ve known; that’s not a quote from any ancient Greek classic. Usually found on hard right/religious right sites, typically cited to support racist views.

————————–

Wow, that was a short path from refusing to shake hands to racism.

Continue if you must into xenophobia, genocide and psychotic homicide, but you’re making me uncomfortable.
————-
Agree with Sold out.
You kinda creeping me out.
Time to Sail Away.

#77 Sail Away on 01.30.20 at 1:27 am

#59 Doug t on 01.29.20 at 9:05 pm

Friend of mine did an interesting thing a couple years ago and bought 8 ounces of gold on his credit card to get the points – paid off the cc couple weeks later with cash from his crappy low interest savings account and used the points for a trip – forward to this month he sold the gold for cash and made a very nice profit from original purchase AND enjoyed a holiday on points hmmmmmmm

——————————–

Yes, of course. Personal finance 101 is to never carry a cc balance. Better is to work the rewards to your benefit as your buddy did.

In general for the blog, why would it matter if the banks raise rates or charge interest on interest if it has zero effect on you, personally? It might be time to increase bank holdings if their profits will expand.

#78 Spectacle on 01.30.20 at 2:32 am

CJ on 01.29.20 at 6:18 pm
Thanks for the reminder Garth! Just called TD to cancel my credit card w/them. Got a whole spiel about how it’s not really interest-on-interest, they gave a pre-written analogy using a base of $100 and how it’s not really very much money, barely noticeable. That being said, they didn’t have an answer when I asked what I was getting for the new fees.

The agent did stress that ALL the major banks would be doing this in the very near future and it would become a new standard here. Thoughts?

-CJ
————— Perhaps… ——–
Get something like :
1) a Cash Back Costco Cred Card,
2) Use it for Everything. ( Gas, household, groceries)
3) Never run a balance, Paying it off every 2 weeks.
Must be other good options. Cash is better than points??

#79 Captain Uppa on 01.30.20 at 5:25 am

My apologies, I was for some reason thinking of household income to purchase price ratio.

Carry on.

#80 Stan Brooks on 01.30.20 at 6:41 am

Bank of Canada to Begin Purchasing 10 Year Mortgage Bonds

https://stevesaretsky.com/bank-of-canada-to-begin-purchasing-10-year-canada-mortgage-bonds/

The Bank of Canada has announced it will begin purchasing 10 year fixed rate Canada mortgage bonds. Before anyone gets confused, this is not QE (quantitative easing) but rather, it is balance sheet management, where the central bank routinely purchases assets to offset its liabilities, which consist mainly of bank notes in circulation and government deposits.

As I predicted looooooooong time ago. Note the statement: It not QE but a ‘balance sheet management.’

Note: Bank notes in circulation are bank liabilities…
Against what, the gold reserve that BoC sold?

Government deposits are liabilities? They are there just for safe keeping. What is BoC doing it, loaning it out? This is commercial banks job.

Routing government bond purchases? When exactly in the past was that done? Hint: never.

Lie after lie after lie.

It is outright monetization of debt resulting in devaluation of currencies and screwing of savers and retirees. Brace for even higher inflation folks. Adn as I warned, CYA in inflation protected assets.

Cheers,

#81 Apocalypse2020 on 01.30.20 at 7:33 am

Coronavirus pandemic meet hallway medicine….

Nope, no problem looming, just move along.

https://www.cbc.ca/news/canada/toronto/ontario-hospital-hallway-medicine-healthcare-beyond-capacity-1.5420434

Are we kidding ourselves!?

PREPARE

#82 Wait There on 01.30.20 at 8:17 am

I posted a few days ago.
The Chinese New Year Travel has caused this virus in China to become a monster.
Take a bucket of white paint. Drop a cup of black paint into it. Now let it sit. How much does the black paint spread? Can you contain it? That’s the WHO model.
Now imagine if you take a paddle and stir up the bucket. Now that is the effect of the Chinese New Year when dense and sustained travel occurs throughout the country. That’s what you now have, this akin to forced contamination. The WHO has now realized the effect.
The result is that every corner of China now has this virus as reported in the News.

There is the right thing to do and the nice thing to do now. Unfortunately they are mutually exclusive. One of the options is to close off all travellers from China unless they voluntarily opt to quarantine themselves for two weeks or continue and move along folks. This is a movie unfolding.

The world has never witnessed the spread when the mass migration of hundreds of millions happen at the same time. You can’t go back to ” this time it’s the same”. No This Time Is Different and the evidence is presenting itself. The small towns and villages are not really being accounted for as yet. It is there.

#83 crowdedelevatorfartz on 01.30.20 at 8:23 am

@#81 Apocalypto2020

Now things will get interesting….

https://www.reuters.com/article/us-china-health-india/india-reports-its-first-case-of-coronavirus-idUSKBN1ZT0T7

Did you purchase bio-filters for the bunker air supply?
Keep the bunker location secret?

#84 BillyBob on 01.30.20 at 8:28 am

#47 JSquared on 01.29.20 at 7:00 pm
Ever notice how long it takes for purchases & payments to show up on your credit card online accounts? How in today’s digital age are consumers not allowed to see their balance in real time? I purposely monitored my card purchases over a month. Some took up to 10 days to show up on my online statement. Such a joke. Obviously the banks do it on purpose. I can’t imagine trying to keep track in my head where my limit is at if I used my credit card frequently like a lot of people do.

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

Sorry, but in this day and age there is no excuse for losing track of your spending or credit limit. It’s not 1971 and you have to write it down in a ledger. There are tons of apps you can keep in that portable device in your pocket to track every transaction in real time – if you wish.

Of course, it’s much easier to complain that the bank isn’t doing everything for you but why not return the power of knowledge to yourself and take initiative?

Usuriousness is not limited to Canada. When I first moved to the UK I had to establish credit. With no history, you start at zero. (Same as moving to US). No matter that my Transunion credit score in Canada is 859 and Transunion UK is a monitor here. Start again. So the only credit card I could qualify for as a new resident was a dodgy alternative one with a £300 limit and an ASR of 41.80%. Frankly the rate was irrelevant to me: I never, ever carry a balance. Running everything through that for several months and always paying it off in full led to a national bank card with a £10,800 limit and a credit score of 941. Easy. (The new card has a “better” ASR of 22.44% lol).

And overdraft costs are slated to rise in the UK to around 40%-50% for their use. Folks outraged, up in arms. I don’t even notice, I don’t even have one arranged. If I don’t have the money, I don’t spend it. Have never used overdraft, never paid a cent in interest in 30 years of using credit cards. Or a monthly banking fee, for that matter. But I’ve received thousands of dollars over the years in cash rewards. Why pay the bank when they will pay you?!

Moral of the story, never, ever use these types of facilities as credit. Convenience, cashback, points, fine. But for the undisciplined, lazy, disorganized – in short, just about everyone – credit cards and overdraft are just the worst idea ever.

https://www.theguardian.com/business/2020/jan/28/uk-banks-overdraft-rates-fca

“More than half of banks’ unarranged overdraft fees came from only 1.5% of customers in 2016.”

#85 crowdedelevatorfartz on 01.30.20 at 8:50 am

@#82 Wait There
“The world has never witnessed the spread when the mass migration of hundreds of millions happen at the same time.”
++++

Epidemiologists believe that the “Spanish Flu” pandemic of 1918 started with military kitchens near the front lines slaughtering infected pigs and chickens near the troops. Unsanitary conditions and closely packed troop conditions exacerbated the spread.
The war ended and troops were packed on ships to further infect other troops.
They were then sent home , all over the world, methodically, over the next 6 months…to infect millions of civilians….the virus mutated into something worse…

Even healthy, young people would be show no symptoms in the morning, start coughing at noon and be dead before midnight.
Drowning in lungs filled with mucus.
The skin of the victims tinged blue.
The stories related tell off the death rate being so high that unsolicited hearses would drive the streets of large cities ( Montreal in this particular instance)and if you had a relative that had died the previous night…you could flag them down like a taxi to pick up the body.
The authorities were overwhelmed

That was before the “Jet age” and widespread vaccination programs……

Lets see how round 2 goes…

How to avoid the flu.
Wash your hands.
Dont eat bats.
Dont shake Ozzy’s hand.

#86 Sail Away on 01.30.20 at 8:53 am

#76 Ponzius Pilatus on 01.30.20 at 1:20 am

—————————-
Agree with Sold out.
You kinda creeping me out.
Time to Sail Away.
—————————-

Back, Ponze! Sit. Stay.

#87 Tater on 01.30.20 at 9:02 am

There’s a startup in Toronto doing this as well. Lendl is the name.

#88 IHCTD9 on 01.30.20 at 9:07 am

Only ever used a CC for over the phone/net purchases for convenience. Now we use the VISA Debit for online stuff which takes it right out of your bank account just like buying in person via Interac does. E transfers are amazingly convenient too, I’ll be using this much more in the future – easy as pie.

Maybe the banks are seeing their potential profits on CC interest (which have to be huge) dropping in the future given all these payment options out there these days?

#89 neo on 01.30.20 at 9:18 am

#82 Wait There on 01.30.20 at 8:17 am
I posted a few days ago.
The Chinese New Year Travel has caused this virus in China to become a monster.
Take a bucket of white paint. Drop a cup of black paint into it. Now let it sit. How much does the black paint spread? Can you contain it? That’s the WHO model.
Now imagine if you take a paddle and stir up the bucket. Now that is the effect of the Chinese New Year when dense and sustained travel occurs throughout the country. That’s what you now have, this akin to forced contamination. The WHO has now realized the effect.
The result is that every corner of China now has this virus as reported in the News.

There is the right thing to do and the nice thing to do now. Unfortunately they are mutually exclusive. One of the options is to close off all travellers from China unless they voluntarily opt to quarantine themselves for two weeks or continue and move along folks. This is a movie unfolding.

The world has never witnessed the spread when the mass migration of hundreds of millions happen at the same time. You can’t go back to ” this time it’s the same”. No This Time Is Different and the evidence is presenting itself. The small towns and villages are not really being accounted for as yet. It is there.

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

It’s a cold…Relax…exponentially more people die from the common flu every year.

#90 Sail Away on 01.30.20 at 9:30 am

I eagerly await today’s markets. Love that anticipation.

#91 IHCTD9 on 01.30.20 at 9:39 am

#66 Bob Dog on 01.29.20 at 9:58 pm
Funny how your corrupt criminal government will consider any and every possible solution to a nation housing crisis except reducing the rate at which they migrate people to Canada. The population has been thoroughly conditioned over decades to accept without question a policy of mass migration.

Canadians exist for the benefit of corporations foreign and domestic and the vermin in Ottawa are committed to providing and endless supply of people will to work for peanuts.
___

Yes, to work cheap and do all the menial jobs that Canadians don’t want too. That’s not such a bad deal for you as an established Canadian.

Immigration is tax dollars plain and simple. If you want to cut back on folks coming here:

1. Stop voting for nimrods like Trudeau
2. Vote for hard austerity to eliminate the debt
3. Vote to downsize government and services 50+%
4. Vote to eliminate all public sector Unions
5. Vote to eliminate all public sector pensions
6. You get the picture ^, get the machete out and vote for it

If you don’t like the sound of that, then you’ll need to start liking the sound of 3-500K new Canadians showing up every year.

We quit having kids and voted in spendy governments that love borrowing Billions for whatever will get them elected by the doorknob Canadian voter. Now we lie in the bed we’ve made.

Big incoming numbers are on the horizon – hopefully you don’t live in the GTA/GVRD.

#92 crowdedelevatorfartz on 01.30.20 at 9:54 am

@#89 neo
“It’s a cold…Relax…exponentially more people die from the common flu every year.”
++++

I’m sure the World Health Organization just breathed a huge sigh of relief at your epidemiological assessment.

When did you become an expert in epidiemi… epiderma….. epicdemeening…. oh never mind……bugs?

Fyi.
The 1918 Spanish Flu started off slow in the Spring , mutated during the summer and really cranked up in the Fall and Winter.

India just announce their first case. So now we have China and India dealing with a virus that has a 14 day incubation period before symptoms start to show….. 2.5 billion people? and a Jet age delivery system.

#93 Sail Away on 01.30.20 at 10:00 am

Ah, yes. Guess I’ll buy the office lunch today.

You know what I’m talking about, Tater.

#94 Remembrancer on 01.30.20 at 10:13 am

#88 IHCTD9 on 01.30.20 at 9:07 am
via Interac does. E transfers are amazingly convenient too, I’ll be using this much more in the future – easy as pie.

Maybe the banks are seeing their potential profits on CC interest (which have to be huge) dropping in the future given all these payment options out there these days?
————————————-
I wouldn’t worry about the banks, they’re still getting they’re share on debit card purchases, Interac e-transfers and the like…

And given the stats everyday here, there’s no shortage of borrowers of one kind or another for the foreseeable future…

#95 IHCTD9 on 01.30.20 at 10:23 am

#51 SoggyShorts on 01.29.20 at 7:31 pm
#46 Ray on 01.29.20 at 6:55 pm
#11 SoggyShorts on 01.29.20 at 4:35 pm:
The government may not have to get involved to eliminate self driving vehicles. The insurance companies just may no longer insure self driving vehicles any longer.

****************
Right, because insurance companies don’t like profit…
Rates may go up, but as long as there is private insurance and at least some competition they’ll insure anything.

____

True, but the cost to consumers is the end of the line. I would have a third vehicle on the road right now to facilitate the kids’ travels, “no problem” they said, “that’ll be 4500.00/yr to cover a 17 year old new driver who does not have a full license yet”. That killed it right there, no third vehicle.

If an insurance company decides for whatever reason that an EV is going to cost 5K per year, then only the die-hard tree-huggers and fanboi’s will own them.

#96 Renter's Revenge! on 01.30.20 at 10:30 am

#47 JSquared on 01.29.20 at 7:00 pm
Ever notice how long it takes for purchases & payments to show up on your credit card online accounts? How in today’s digital age are consumers not allowed to see their balance in real time? I purposely monitored my card purchases over a month. Some took up to 10 days to show up on my online statement. Such a joke. Obviously the banks do it on purpose. I can’t imagine trying to keep track in my head where my limit is at if I used my credit card frequently like a lot of people do.

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

It’s not necessarily the banks. Stores accumulate credit card transactions over several days and submit them all at once.

#97 IHCTD9 on 01.30.20 at 10:40 am

#45 BlogDog123 on 01.29.20 at 6:54 pm

No shame in downsizing your life, shared accommodation, get rid of the car(s), walk to work until you figure out how to climb out of that high interest debt mode you’ve been living.
____

The best bet IMHO is employing the “you can’t miss what you never had” principal. Start low right off the bat with low expenses, cheap mortgage, cheap car, and build from there. Young folks can do this and wear it as a badge of honor with their head held high. Tougher to do that when you’re 40+.

As you get older and conquer life’s big bills, you start to own spare cash which you then use to buy a new Chevrolet Silverado 1500 High Country because the monthly is now easily paid.

This is when lifestyle inflation can happen without dire consequences. It’s tough to go back to driving an ’02 Sierra 1500 Reg Cab V6, if you just finished driving a ’19 Sierra Denali 2500HD Crew Cab Duramax (that you gave up because you couldn’t make the monthly).

Start right, and you can have it all without unmanageable debt or remorse.

#98 Tater on 01.30.20 at 10:41 am

#93 Sail Away on 01.30.20 at 10:00 am
Ah, yes. Guess I’ll buy the office lunch today.

You know what I’m talking about, Tater.
————————————————————-

Another $800mm in losses this year? Yep, market is rational.

#99 Yukon Elvis on 01.30.20 at 10:51 am

I love my credit cards. I use them for everything even though I could use debit card and pay cash for everything. The cards pay me cash/points to use them. I pay them off before month end. Never carry a balance. Such a deal, free money.

#100 Dharma Bum on 01.30.20 at 11:01 am

I’m surprised that the banks didn’t charge interest on unpaid credit card interest earlier.

Should be good for bank profitability.

Time to buy more bank stocks.

#101 Dharma Bum on 01.30.20 at 11:07 am

#96 Renters revenge

How in today’s digital age are consumers not allowed to see their balance in real time?
——————————————————————–

TD VISA registers every CC transaction instantly. It immediately shows up on the statement as a “pending” transaction.

There’s also a spending tracking app from TD that will send a notification to your smartphone the second you use your credit card or debit card.

#102 Wait There on 01.30.20 at 11:17 am

https://www.cnn.com/2020/01/30/asia/wuhan-coronavirus-update-china-spread-intl-hnk/index.html

How the hell do you control that? Wait?????Before boarding all passengers are screened.

Need I say more. Look at the trajectory of infections. It’s a cold.

#103 Sail away on 01.30.20 at 11:22 am

#98 Tater on 01.30.20 at 10:41 am
#93 Sail Away on 01.30.20 at 10:00 am

Ah, yes. Guess I’ll buy the office lunch today.
You know what I’m talking about, Tater.
————————————————————-
Another $800mm in losses this year? Yep, market is rational.

——————————————-

No, silly. Billion$ and billion$ in short covering.

There is no reality but reality, my friend.

#104 Wait There on 01.30.20 at 11:25 am

The reason why the Chinese Official says it will peak in about a week to ten days is because that was the period of return travel to the families in all areas of China. What is not mentioned is the return trip has already begun and the incubation period is still within the window. The second wave begins. IF the second wave with returnees go back to the main cities infected then watch out.
The only way to have mitigated a second wave was to not allow return trips for two weeks. No possible as the economic consequences would have been huge.
How the heck do you have travel banned for two weeks and have international borders with China shut off for two weeks? Feasible but it would take not basketballs but cannonballs to have that policy.

#105 uncle dave on 01.30.20 at 11:26 am

Quick question if anyone cares to answer, vgro or veqt for a 21yr old just starting to invest in TFSA.
Thanks

#106 Penny Henny on 01.30.20 at 11:44 am

#85 crowdedelevatorfartz on 01.30.20 at 8:50 am

Lets see how round 2 goes…

How to avoid the flu.
Wash your hands.
Dont eat bats.
Dont shake Ozzy’s hand.

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

If that was a Parkinsons joke then you’re one sick MF

#107 Farquad on 01.30.20 at 11:58 am

this is what happens when the monetary policy levers no longer work. When it all collapses now it will be due to complete economic collapse

#108 Sail away on 01.30.20 at 12:27 pm

#99 Yukon Elvis on 01.30.20 at 10:51 am

I love my credit cards. I use them for everything even though I could use debit card and pay cash for everything. The cards pay me cash/points to use them. I pay them off before month end. Never carry a balance. Such a deal, free money.

————————————

Likewise. I put nearly all purchases on cards, never pay any sort of fees, and get all kinds of free stuff and travel.

A few years ago when our kids moved out, we gave them cards on our rarely-used bank Visas. The bank said there was no way they could reduce the card limit to $3k for the individual cards and that the full limit would have to stay in effect for all cards.

My wife said, ‘That’s fine. Reduce the account credit limit to $5,000’. Oh… they did not want to do that.

She insisted. Sort of funny.

#109 n1tro on 01.30.20 at 12:35 pm

#105 uncle dave on 01.30.20 at 11:26 am
Quick question if anyone cares to answer, vgro or veqt for a 21yr old just starting to invest in TFSA.
Thanks
————
IMO…VEQT for the 21 yr old since they have time on their hands when markets dips. VEQT should perform better in theory. VGRO has bond component which reduces the shock if there is a market dip. Either way, can’t go wrong if the kid is starting at such an early age and continues to add to it.

#110 IHCTD9 on 01.30.20 at 1:14 pm

#31 Useless on 01.29.20 at 5:24 pm

This is like watching a car crash in slow motion…
___

Yep, lots of balls in the air for the working stiff trying to get comfortably retired to watch.

Immigration is fine by me – I want to receive my OAS/CPP/Health Care etc.. that I’ve had no choice to pay into for what will be over 4 decades when the time comes. These newcomers are here to foot the bill (and then some) since Canucks have largely quit the reproduction game. So, hats off to them if they’re here by their own hand (good luck!). It sucks, but again, we lie in the bed we’ve made, and there is no going back to fix it.

Government revenues are going to be a massive issue going forward. Trudeau has all but given whatever funds he had away, and has utterly failed to make new ones. Big business (ie resource corps, manufacturing etc..) is either bailing through the forces of globalism, or forcibly getting the boot via government policy or lack thereof. Taxing RE is next… then maybe some kind of cyber taxes… They’re going to have to get creative lol!

Eventually, a small group of taxpayers will be all who remain available to soak, but realistic increases on this group will be way waaay short of what’s required. Someone, somewhere down the line, is going to have to either tax like Caesar, or cut like Jack the Ripper – or both. The longer they wait, the more pain for the people when the bond market finally says no more.

The housing thing I don’t give a rip about as it’s just a two region issue in Canada. I don’t live in either.

So far I’m good, don’t live in the GTA, own SFD outright, nest egg in decent shape, kids hopefully launch over the next 2 years, no debt, 5 figure emergency fund in cash (I know, I know…), lots of land and heavy yellow iron for bunker building, and a couple of bug-out vehicles at the ready.

All we have to do is make sure we’re ready to bail from the Loonie before the IMF has to take over.

Keep your ear to the rail…

#111 BillyBob on 01.30.20 at 1:31 pm

#106 Penny Henny on 01.30.20 at 11:44 am
#85 crowdedelevatorfartz on 01.30.20 at 8:50 am

Lets see how round 2 goes…

How to avoid the flu.
Wash your hands.
Dont eat bats.
Dont shake Ozzy’s hand.

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

If that was a Parkinsons joke then you’re one sick MF

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

Google “Ozzy Osbourne bats” and you’ll realize how stupid your comment is.

But, good for you to not waste a chance to be needlessly offended.

#112 Bytor the Snow Dog on 01.30.20 at 1:31 pm

#38 CJ on 01.29.20 at 6:18 pm sez:

“The agent did stress that ALL the major banks would be doing this in the very near future and it would become a new standard here. Thoughts?

-CJ”
———————————————-

This is what is referred to in Canada is “competition”.

#113 ts on 01.30.20 at 1:32 pm

First the coronavirus, now 60 km swarm of locusts in Africa. What’s next? Prepare.

#114 James on 01.30.20 at 1:52 pm

#89 neo on 01.30.20 at 9:18 am

#82 Wait There on 01.30.20 at 8:17 am
I posted a few days ago.
The Chinese New Year Travel has caused this virus in China to become a monster.
Take a bucket of white paint. Drop a cup of black paint into it. Now let it sit. How much does the black paint spread? Can you contain it? That’s the WHO model.
Now imagine if you take a paddle and stir up the bucket. Now that is the effect of the Chinese New Year when dense and sustained travel occurs throughout the country. That’s what you now have, this akin to forced contamination. The WHO has now realized the effect.
The result is that every corner of China now has this virus as reported in the News.

There is the right thing to do and the nice thing to do now. Unfortunately they are mutually exclusive. One of the options is to close off all travellers from China unless they voluntarily opt to quarantine themselves for two weeks or continue and move along folks. This is a movie unfolding.

The world has never witnessed the spread when the mass migration of hundreds of millions happen at the same time. You can’t go back to ” this time it’s the same”. No This Time Is Different and the evidence is presenting itself. The small towns and villages are not really being accounted for as yet. It is there.

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

It’s a cold…Relax…exponentially more people die from the common flu every year.
__________________________________________
Exactly it is a virus. If your immune system is weak then watch out! Weakened immune systems are usually what kill people with the flu and other viruses. We just changed our meetings next week in Singapore due to nervousness from all parties in involved. So what are we doing now? Everyone is meeting in London, so everyone can feel better about this virus. Its in London already! Super overreacting and stupid IMHO. If your a tin foil hat wearing lunatic then its a pandemic. For gods sake I wish these knuckle draggers would just simply get a flu shot and wash their hands more often. Way too much social media spreading lies.

#115 Doug in London on 01.30.20 at 1:53 pm

There already is a way to live in a home where you don’t have 100% ownership. It’s been around for many years and it’s called renting.

#116 Mattl on 01.30.20 at 2:01 pm

#96 Renter’s Revenge! on 01.30.20 at 10:30 am
#47 JSquared on 01.29.20 at 7:00 pm
Ever notice how long it takes for purchases & payments to show up on your credit card online accounts? How in today’s digital age are consumers not allowed to see their balance in real time? I purposely monitored my card purchases over a month. Some took up to 10 days to show up on my online statement. Such a joke. Obviously the banks do it on purpose. I can’t imagine trying to keep track in my head where my limit is at if I used my credit card frequently like a lot of people do.

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

It’s not necessarily the banks. Stores accumulate credit card transactions over several days and submit them all at once.

——————————————————–

That is not common actually, and any store that does it should be out of business. It delays merchant funding – cash flow – and results in downgrades/increased processing fees. Most merchants auto close the batch at EOB.

I get the odd transaction that shows up a week later but very, very few. For the most part you should be able to easily track transactions from most reputable issuers.

For anyone that is looking for a reconciliation tool across multiple cards and accounts, Mint is a pretty slick web based tool.

#117 Sail away on 01.30.20 at 2:10 pm

#114 James on 01.30.20 at 1:52 pm

If your a tin foil hat wearing lunatic then its a pandemic. For gods sake I wish these knuckle draggers would just simply get a flu shot and wash their hands more often. Way too much social media spreading lies.

————————————

Yes. And shake hands, you weenies.

Also invest in protective equipment which I predict will have a spectacular 2-3 month run.

#118 crowdedelevatorfartz on 01.30.20 at 2:49 pm

@#111 Billy Bob re MF
“Google “Ozzy Osbourne bats” and you’ll realize how stupid your comment is.

But, good for you to not waste a chance to be needlessly offended.”

++++
The social justice warriors arent getting any smarter with age are they……….

#119 IHCTD9 on 01.30.20 at 2:49 pm

#113 ts on 01.30.20 at 1:32 pm

First the coronavirus, now 60 km swarm of locusts in Africa.

What’s next?
___

Next I believe will be darkness, and then the creeping death.

#120 crowdedelevatorfartz on 01.30.20 at 2:54 pm

Oops apologies MF.

I meant Penny Henny. Or any sjw for that matter.

https://www.washingtonpost.com/arts-entertainment/2019/01/23/ozzy-osbourne-bit-head-off-bat-years-ago-some-reason-now-toy-commemorates-it/

#121 Tater on 01.30.20 at 3:50 pm

#103 Sail away on 01.30.20 at 11:22 am
#98 Tater on 01.30.20 at 10:41 am
#93 Sail Away on 01.30.20 at 10:00 am

Ah, yes. Guess I’ll buy the office lunch today.
You know what I’m talking about, Tater.
————————————————————-
Another $800mm in losses this year? Yep, market is rational.

——————————————-

No, silly. Billion$ and billion$ in short covering.

There is no reality but reality, my friend.
————————————————————–

Short covering or retail piling into the hot name? Most professional shots have reduced their positions pretty dramatically.

As long as there are converts out, there will be a good chunk of shares short by arb guys, but they aren’t betting against the company.

#122 Sail away on 01.30.20 at 5:00 pm

#121 Tater on 01.30.20 at 3:50 pm
#103 Sail away on 01.30.20 at 11:22 am

——————————————-
No, silly. Billion$ and billion$ in short covering.
There is no reality but reality, my friend.
————————————————————–
Short covering or retail piling into the hot name? Most professional shots have reduced their positions pretty dramatically.
As long as there are converts out, there will be a good chunk of shares short by arb guys, but they aren’t betting against the company.

—————————————–

Still, 27M shares / $16B in shorts is a LOT. Regardless of the arbitragers, there’s a serious short squeeze on.

The collapse and cover could further juice this epic run.

For those who don’t know, we’re talking Tesla stock.

#123 WUL on 01.31.20 at 1:22 am

#53 akashic record on 01.30.20 at 9:06 pm

Can someone shed some light, if there was a recent legislative change that prompted these banks to roll out this innovation, at the same time? Who, when introduced it?

$$$$

Put a considerable retainer in my trust account and I’d be pleased to delve into the issue. Monthly billings. Net 30 days. E&OE mandatory. I got Calgary real estate to salvage.

WUL