Arousals

Pandemics are temporary. They pass. Demand is delayed, not destroyed. Stay invested.

Yup, that was the message here yesterday. And since March. It was correct. A 40% rise in equity markets was the best 50-day rally on record. Now look at what’s happened.

Markets surged again Friday on the latest jobs news. In the US an astonishing 2.5 million people started working after almost 21 million lost their incomes in April. The unemployment rate fell, when expected to spike. Labour participation swelled. Economists were left with pants around their ankles after forecasting 7.5 million more jobs would be destroyed and the jobless toll would hit 19%. Trump did a jig in the bunker.

And in Canada? Despite the headline shocks from Air Canada and Bombardier, employment is rebounding. Last month 290,000 more people found work when analysts has expected 500,000 would lose their jobs. “Changes in the labour market represented a recovery of 10.6% of the COVID-19-related employment losses and absences recorded in the previous two months,” said StatsCan.

And look at this chart. What an exciting little erection down there.

Employment declines come to a halt in May

Source: Statistics Canada

More good news: three-quarters of all the jobs recovered last month were full-time. Way more people started looking for work, instead of staying home on the CERB, fighting with the cat and snorfling Netflix. Now, combine this with the arousals detailed here yesterday (US airline traffic, oil prices, bank inflows, mortgage apps) and no wonder investors are frisky. Normal may be years away. But the crisis is passing.

Now, let’s talk about social conflict, the wealth divide and growing tensions on a certain pathetic blog. Here’s a comment summarizing the simpering angst and smouldering bitterness of people who are clearly not investors…

The sycophants here spend all their time harping about how the housing market is detached from reality but cheerleading a stock market approaching all time highs with double digit unemployment, large and small businesses failing, airlines not flying, cruise ships docked, movie theatres, restaurants, malls shuttered, etc.

Let’s try being honest now, it’s all pogey, and you guys only have a problem when working people take it.

Let’s try being honest. When you’re rich, white, sitting at the computer clicking stock purchases, scamming the system, and benefitting from governments propping up the stock market — you’re a hero. When you’re a worker who has lost their job and relying on EI — you’re a bum, a loser and a problem. WHY?

It’s true. Wealthy people own. Other people borrow. The virus has rendered the gap worse by exposing the dangers of leverage, real estate lust, over-borrowing and living paycheque-to-paycheque. Those without resources, savings or investments are clobbered when they’re also without income. They’d like everybody to suffer equally. But, tough.  Massive government and fiscal stimulus has propped up markets, rescued corporations, dropped financing costs and lubricated credit. Markets love it. Pain’s been transferred from the economy to the taxpayers. So as the pandemic crests then retreats investors come out whole while employees stagger towards the distant light.

Rail against it all you want. But accept it. The banks will continue to thrive and pay dividends to investors, for example, who profit from your mortgage payments. If real estate values fall because CMHC changes the rules and curbs credit as it did yesterday, the lenders (and shareholders) won’t feel a thing. The indebted will. Their equity may fall. Their mortgages will not.

This is a financial blog. (Well, canines, too, with forays into auto mechanics, animal husbandry, sexual tension and epidemiology.) It dispenses advice on how to improve your situation. It’s not here to change the world, bridge the wealth gap, foment social justice, dis white people, decry privilege or elect anybody. That’s what the NDP’s for.

Detailing what financial markets are doing, and why, plus the impact on portfolios is not bragging. Owning ETFs, a bond or some REITs is not scamming the system. Investors risk their capital every day. They lost a ton of it in March. They regained much in April and May. Most of the money’s in retirement savings, pension plans or TFSAs, and the majority of investors have jobs – which is where they got it. Thinking everybody with more than you is just “sitting at the computer clicking stock purchases” is puerile. Grow up.

It’s a shame millions must live off the government’s largesse when they cannot survive eight weeks on their own. That some abuse this is indefensible. That people defer mortgages or refuse rent when they could pay is a mistake. That we’ve built a condo economy so dependent upon selling each other inflated houses with borrowed money is dangerous. That we whine and snipe at the gains of others is diminishing. If we don’t regret such things already, thanks to Covid, that day is coming.

 

195 comments ↓

#1 SnowOwl on 06.05.20 at 1:47 pm

Garth,
Does the portfolio hold any international bonds?
Why or why not?
Cheers

There is global bond exposure, along with government, corporate and provincial. – Garth

#2 Ballingsford on 06.05.20 at 2:00 pm

That’s incredible that 290,000 mostly full time jobs were created in May, when a 500,000 loss was anticipated. The counting started the second week of May, the ones employed after don’t count for the rest of the month.
Is there a breakdown on what types of jobs were filled? They can’t mostly all be construction jobs.
The breakdowns by province who started opening their economies earlier would be interesting to see also.

#3 Captain Uppa on 06.05.20 at 2:01 pm

I knew taking some of my money out of the market was wrong, but since I temporarily lost my job, I did it out of comfort for my family. Just to know the cash was there in case and not subject to market fluctuations.

Well, we survived just fine and I did not need any of that money I took out. Lesson learned. I’m relatively young and will not make the same mistake.

#4 Thomas on 06.05.20 at 2:14 pm

Sold some CM.TO and bought some more GOLD today.

Rationale:
– Banks are toast with negative rates coming. Just look across the Atlantic.
– GOLD was oversold.
– T2 spent another 14 Billions he doesn’t have.
– CAD is very high compared to the USD.

PS: Garth, I cannot lick my bullion because it comes in small 1oz bars covered with plastic and paper packaging (I am not that rich as you think I am…).

#5 SnowOwl on 06.05.20 at 2:17 pm

Nice to be first (and right) once in a while.
Thanks for responding, Garth!

#6 Faron on 06.05.20 at 2:23 pm

Three things I wish I grasped sooner in my life (but could apply to pandemic too).

The world is not going to melt. Living for today is fun when young but not a “plan”.

Investing is stupidly easy especially with ETFs. A small hurtle of paperwork and you are in. At the very least [email protected] will help you put $500 into a balanced mutual fund with as low MER as possible. Better than nothing. No big lumps of cash are needed. Wish they taught it in highschool.

The third is personal, so not for the toothy comments section.

As for the wild class debates going on here, advice I can apply to myself and that may apply to others is: write out my pithy self righteous comment. Wait 20seconds. Dial the tone down to 25%, ask if I would say this to my mother. Hit send. Obviously I don’t always do it, but am trying to use that as a guiding principle.

Cheers

#7 Dolce Vita on 06.05.20 at 2:23 pm

1,229,500 missing from the Feb. Labour Force in May.

COVID didn’t kill them.

Not lost on the StatCan Author(s) of good old “Infographic 1” of The Daily version of the Labour Force Survey, link below (where “they” estimated last months most likely Unemployment rate was 17.8%).

In a nutshell the suggested Math, x1000, for the most likely Unemployment rate follows (their script in as many words):

1,229.50 M.I.A. Labour Force from Feb

201.00 M.I.A. already counted as Unemployed in May
+
2,619.20 May Unemployed

= 3,647.70 Unemployed
÷
19,093.70 May Labour Force
=
19.1% Unemployment Rate

“What they are saying is…” 1,229.50 – 201 should also be counted as unemployed as they meet the criteria.

There are still some brave and honest souls that sneak in the truth from StatCan, providing the Math in hope that someone out there canread the script UNLIKE the Cdn parrot, copy, paste, MSM.

The Infographic I Author(s) remind me of Deep Throat from the Watergate Scandal.

———————-

https://www150.statcan.gc.ca/n1/daily-quotidien/200605/dq200605a-eng.htm

———————-

That “ERECTION” just went LIMP, still headed South.

Mainstream Canada is not there yet Garth. I want it to be just as much as you but the reality is, no, not yet.

#8 tbone on 06.05.20 at 2:28 pm

Im hanging onto to my CM that I bought in april this year, its going to the moon , just like Alice .

#9 BigEnglish on 06.05.20 at 2:29 pm

As always I enjoy reading your blog, whether I agree or disagree with your synopsis.

An added bonus of always expanding my vocabulary on the beautiful use of language.

#10 AB Bound on 06.05.20 at 2:32 pm

#3 Captain Uppa
I knew taking some of my money out of the market was wrong, but since I temporarily lost my job, I did it out of comfort for my family. Just to know the cash was there in case and not subject to market fluctuations.

Well, we survived just fine and I did not need any of that money I took out. Lesson learned. I’m relatively young and will not make the same mistake.

—————————————

Did you have a fat 6 month emergency fund?

#11 SimplyPut7 on 06.05.20 at 2:36 pm

…using the current mortgage qualifying rate of 4.94% and GDS limit of 39, a family with an annual income of $100,000 and a 10% down payment would have qualified for a home valued at $524,980.

Under the new GDS limit of 35, the same household can now only afford a home of $462,860.

This represents a decrease in buying power of almost 12%, due to the change in the GDS limit.

https://www.ctvnews.ca/business/pattie-lovett-reid-why-cmhc-is-tightening-lending-standards-1.4970791

Should be an interesting Fall this year.

#12 Cottagers STAY THE HELL AWAY! on 06.05.20 at 2:38 pm

It’s raining in southern Ontario, with thunderstorms coming. The lake water is freezing still, too cold to consider swimming.

Stay at home and contemplate Garth’s wise thoughts over the weekend. Don’t compromise our health care resources by coming up for a meaningless visit.

Just.

Stay.

Home.

#13 AB Bound on 06.05.20 at 2:38 pm

What is the cost of a life in Canada?

7600 deaths from coronavirus

150 billion already spent( approx )

$19.7 Million dollars in gov Spending per death. Aren’t 80% also over 80 years old?

Am I missing something here?

#14 Dolce Vita on 06.05.20 at 2:41 pm

This from the “slice, dice and/or filter” version of the Labour Force Survey (link below):

Based on the official Politburo Unemployment Rate of 13.7%.

Unemployment
34.30% 15 to 19 years
26.70% 20 to 24 years
11.80% 25 to 54 years
10.40% 55 years and over

13.5% Male
14.0% Female (no data for other Bill C-16 pronouns)

Newfoundland and Labrador 16.3%
Prince Edward Island 13.9%
Nova Scotia 13.6%
New Brunswick 12.8%
Quebec 13.7%
Ontario 13.6%
Manitoba 11.2%
Saskatchewan 12.5%
Alberta 15.5%
British Columbia 13.4%

Provinces with more than 100,000 unemployed, X 1000:

ON 1003.4
PQ 603.9 (the only place you can eat a decent meal in Canada)
AB 365.1
BC 338.1 (lowest COVID test rate of developed nations, Count No Evil)

—————————–

Some pretty BIG HOLES to dig out from under in Mainstream Canada ESPECIALLY for the YOUNG and the ECONOMIC ENGINES of Canada.

—————————–

https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=1410028701

#15 Ace Goodheart on 06.05.20 at 2:44 pm

Looks like despite the best intentions of sane, intelligent and level headed Americans everywhere, Dr. Trump is going to force the USA into a civil war.

Will be interesting to see what that does to portfolios.

Six months ago I would have said that there was no way the USA would descend into chaos and street fighting.

Now I am watching it happen in real time.

#16 Anthony on 06.05.20 at 2:45 pm

I made the main post!

Garth and the blog dogs here still haven’t addressed my point, what makes “investing” in markets propped up by government and central bank pogey more virtuous than taking CERB?

I’m not going to get involved in a pissing match about whether I’m invested, the money I have, etc. Let’s just say I make a living and am put off by the back slapping high-fiving nature displayed here by people who claim to be defenders of capitalism and decry government intervention in markets.

You’re all on pogey.

Thanks for the blog, I appreciate the opportunity to engage in the discussion.

#17 JacqueShellacque on 06.05.20 at 2:54 pm

Canadian stocks and preferreds looking pretty U-shaped, Garth.

#18 useless on 06.05.20 at 2:58 pm

So are the jobs that were created the people going back on company payroll for the CEWS? hahahaha. Seriously though our unemployment numbers are a lot worse than advertised. Do they take into account the CEWS?

#19 ElGatoNerodeYVR on 06.05.20 at 2:59 pm

Life is though so tough decisions must be made. I was there at some point in my past as well. The way out is simple: Cut spending to the bare bones, get a second job .. or a third one ,part time is fine ,takes a few years but once out of the hole start investing and gather marketable skills or keep a weekend job. Not easy but a lot of people are doing it. Beats complaining and envy of others.

#20 baloney Sandwitch on 06.05.20 at 3:03 pm

I am one of those folks who sit on the computer all day buying and selling stocks and options. Its an addiction and I have done very well with it, but it is an addiction. I worked as a corporate drone for 30 years until they threw me out in my mid 50’s. I could not find another job so I created my own. I put capital at risk and eat what I hunt. I think its fair.
The social justice issue is very real. That is why if I have to pay more taxes, so be it. I don’t like what is going on down south. I Hope the orange baboon is flushed out of his white bunker this fall.

#21 NoName on 06.05.20 at 3:05 pm

After reading comments from loony yesterday I came to conclusion that best for me and my family is to tell them that I am their white privelaged oppressor. So going forward they can replace their love with hate towards me.
It reminds me of some exyu politician who sad that mixt religion families their kids are degenerates.

Where is my friend Gavrilo to confirm that…

#22 Dolce Vita on 06.05.20 at 3:05 pm

“It’s true. Wealthy people own. Other people borrow.”

As callous or sycophantic as that may read, borrowers should be happy that there are people on deposit they can borrow against and provide assets to the Banks as they create money out of thin air.

Never bite the hand that…

——————————–

If you look at:

3.65 Million Unemployed (Info. Graphic 1 Deep Throat number)
+
8.37 Million CERB Unique Applicants (June 2, probably many more by today)
=
12.02 Million on the Dole
vs.
May Labour Force = 19.1 Million

…the above is depressing for Mainstream Canada not to mention those that will have to foot the bill to pay for all this in the future. Damn that virus.

——————————–

Italia cases today 518, 402 of them from Mary Mallon Lombardy (COVID mostly “gone, gone” in the rest of Italia). Up from yesterday’s 300 or so cases.

Totally open economy, save Serie A (June 20), and no one dropping like flies so far. Touch wood.

There is HOPE Canada. Do what it takes to keep COVID at bay, get back to work, and begin the process of digging out from under the economic morass created by that damn virus and Govs of Largesse.

#23 Ace Goodheart on 06.05.20 at 3:14 pm

So despite all the mess, the Toronto real estate market continues to plug along in its usual insane sort of way.

For just under one million CDN dollars, including land transfer tax and legals, you can live like the Queen of England in this posh, upper class home worthy of mention on an episode of “Cribs”, located in an exciting and exclusive Toronto neighbourhood:

https://www.bungol.ca/map/43.657331&-79.484974&15?listing=155-priscilla-avenue-york-w4781779-4130525

Doesn’t it just make you feel like you won the house lottery?

#24 TS on 06.05.20 at 3:17 pm

What a complete loser.

The reason my wife and I have money to invest in ETFs, REITs, and Preferreds is because we make more than you and live a less showy life.

Age: 40
Family Income – 240 to 250K
Biggest Mortgage ever: 140K

We make enough that we could impress you with BMWs, Inground Pools, Trips to Italy for anniversaries, and a Double garage single.

Have none of it….

We do have the satisfaction of going to bed every night knowing that we can leave our jobs at anytime or lose them and probably not even have to touch our savings.

#25 James on 06.05.20 at 3:19 pm

#12 Cottagers STAY THE HELL AWAY! on 06.05.20 at 2:38 pm
It’s raining in southern Ontario, with thunderstorms coming. The lake water is freezing still, too cold to consider swimming.
Stay at home and contemplate Garth’s wise thoughts over the weekend. Don’t compromise our health care resources by coming up for a meaningless visit.
Just.
Stay.
Home.
___________________________________________
And where exactly do you live? In in the middle of Hell perhaps? My cottage taxes which I might add pay for your winter plowing and help reduce your tax burden as well as your (mine) locally funded hospitals idiot. I have used your (mine) hospital on at least two occasions over the past 12 years. Never ever had to worry about the color of my skin, the smell of my body or whether I could speak one of the two official languages before they let me in the place. So do you speak on behalf of the community that you live in of is this just your opinion?
BTW I have posted my family at my cottage with my parents so they didn’t have to deal with me interacting with my business during these trying times. Once a week I drop off the major groceries and make sure everything is fine. My wife and children are loving it now that the weather is better. They are social distancing from our neighbors and all is well.

#26 Sail away on 06.05.20 at 3:21 pm

#16 Anthony on 06.05.20 at 2:45 pm

Garth and the blog dogs here still haven’t addressed my point, what makes “investing” in markets propped up by government and central bank pogey more virtuous than taking CERB?

————–

Ever hear Jesus’s parable of the seed on rocky soil?

Same thing with a rock for a brain.

You’ve clearly already made up your mind. Why would we waste time sharing knowledge when you just want to argue?

#27 SunShowers on 06.05.20 at 3:22 pm

People like saying on here that CEOs and investors deserve higher pay than their workers because of “risk.”

Well…I looked at the Service Canada data (and OSHA in the states) of most dangerous occupations, and somehow CEO and investor don’t even make the top 20!

I challenge anyone to look at the iconic photo “Lunch Atop a Skyscraper” and try to convince themselves that the owner of that skyscraper is taking a bigger “risk” than the 11 workers on that girder.

Logging is the most dangerous occupation in Canada, with nearly 3% of workers injured or killed on the job. That’s a pretty significant risk, so why does the pay suck?

What percentage of CEOs are injured or killed on the job?

#28 laylor_traylor on 06.05.20 at 3:26 pm

It’s true. Wealthy people own. Other people borrow. The virus has rendered the gap worse by exposing the dangers of leverage, real estate lust, over-borrowing and living paycheque-to-paycheque.

—– VS —–

Owning ETFs, a bond or some REITs is not scamming the system.

…the thing that SHOULD piss you off is that the system scams lots of people, lots of the time. Inequality is obviously not purely the result of fair returns to ability. Capital accumulation has its own inertia, as Thomas Picketty made crystal clear. Anger at “the rich” isn’t anger at hard-working individuals who saved, it’s anger at an economy that doesn’t reward effort equitably. You feel it in the crunch times, like now.

p.s. $16 Anthony appears to be simply restating the content of this post (stimulus, stimulus). Airlines get their bailout yet?

#29 Classical Liberal Millennial on 06.05.20 at 3:28 pm

#16 Anthony
I don’t think there is anything wrong with taking the CERB if you qualify. I don’t believe Garth has ever criticized anyone who has taken it legitimately. And we pay into EI. It’s literally insurance. So I’m not sure how anyone can criticize using that either.

#30 AGuyInVancouver on 06.05.20 at 3:35 pm

“Rail against it all you want. But accept it. ”

_ _ _
That advice worked out really well when delivered by Marie Antoinette.

#31 crowdedelevatorfartz on 06.05.20 at 3:37 pm

@#16 Anthony
“’m not going to get involved in a pissing match about whether I’m invested, the money I have, etc.”
++++

Well.
Considering you believe that anyone with investments is receiving govt handouts ….pretty much tells us you don’t invest.

The only govt “handout” I receive is the RRSP tax break when I max out each and every year for the last 28 years.
I also have other investments that are balanced and diversified.
I’m still down about 8% from the peak in Jan.

C’est la vie.

If you consider govt business grants to keep companies afloat during the pandemic as pogey….well…..there is no point arguing,
Keep collecting your CERB cheques and rail on about the unfairness of the teat sucking corporations.

#32 Mr. Market on 06.05.20 at 3:49 pm

Whoever sold stocks in the last few weeks and months are the biggest losers. Dow in on track to hit 30K in a few weeks.

Dow is at 27k today and was at 18k a few weeks back. I predicted the correction and rebound accurately. My next prediction. Dow will hit 30k by September and 35k end of this year.

#33 Lost...but not leased on 06.05.20 at 3:50 pm

I don’t deny what Garth is saying…

That’s the problem..

We are being set up for a major fall in the FALL…unicorns , rainbows and faery poop till then.

Stay tuned !!!

#34 Howard on 06.05.20 at 3:51 pm

Remember a month or so when Elizabeth May squawked that “oil is dead”?

Looks like she signalled a generational low in oil.

#35 Flanneur on 06.05.20 at 3:54 pm

Sometimes I wish I was Garth. He just says it.

#36 Democracy Is Mob Rule on 06.05.20 at 3:57 pm

#4 Thomas on 06.05.20 at 2:14 pm
bought some more GOLD today.

Rationale:
– GOLD was oversold.
______________________________________________

Gold spiked temporarily when the stock market crashed in 1987. Look what happened next:

https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

#37 John on 06.05.20 at 3:57 pm

“What an exciting little erection down there.”

You sound like my wife.

#38 Coho on 06.05.20 at 3:58 pm

Good to hear that people are getting back to work even as the MSM continues to beat the Covid dead horse.

This blog being a real estate/investment/financial still allows a diverse discussion which is appreciated. Everything is interrelated. The financial entity underpins most everything. Without means we cannot survive in this system. However, geopolitics, socioeconomics, human emotions/nature, religions, the spiritual, etc are ingredients in the financial soup. We all approach life and try and make sense of things in our own unique way.

And let’s not forget our beloved pets. I once considered myself strictly a dog lover until I met a certain cat. The role pets play in buffeting the coarse energy pervading our planet is underestimated and perhaps not fully appreciated.

#39 SimplyPut7 on 06.05.20 at 3:59 pm

#15 Ace Goodheart on 06.05.20 at 2:44 pm

Most Americans don’t have the stamina it takes to fight for the policy changes required to end police brutality.

The majority of riots should be over by this weekend and the number of people attending peaceful protests will start to decrease. People will go back to sending angry emojis over social media instead of focusing on the years of work it takes to get a politician voted into office that cares about their well-being and improving their standard of living.

#40 Timmy on 06.05.20 at 3:59 pm

Anyone stupid enough to buy multiple properties with leverage to rent on Air B and B deserves to suffer the consequences. What were this people thinking. Market was not sustainable even before the pandemic.

#41 dogman01 on 06.05.20 at 4:02 pm

Said another way:

“At times like the present, when the evils of unsound finance threaten us, the speculator may anticipate a harvest gathered from the misfortune of others, the capitalist may protect himself by hoarding or may even find profit in the fluctuations of values; but the wage earner – the first to be injured by a depreciated currency – is practically defenseless. He relies for work upon the ventures of confident and contented capital. This failing him, his condition is without alleviation, for he can neither prey on the misfortunes of others nor hoard his labour.”
Grover Clevland 1837

#42 mj on 06.05.20 at 4:03 pm

Garth, it finally happened. A bank is offering a 5 year mortgage for 1.99

#43 Democracy Is Mob Rule on 06.05.20 at 4:06 pm

Universal Basic Income

https://ubiworks.ca/emergency-ubi/
_________________________________________

They have a form you can fill out to support pogey for everyone. This is the first step to communism.

#44 Boombust on 06.05.20 at 4:13 pm

Phew!
This must rank as the shortest and shallowest recession on record. So glad it’s “over”.

#45 YVR Expat on 06.05.20 at 4:14 pm

Unemployment is low, and going lower. Businesses are closed, many won’t be able to open back up. How is this good for the stock market? Is the dumb money pouring into the markets right now? Warren Buffet and Stan Druckenmiller don’t see any bargains… are we being sold a lie?

#46 Another Deckchair on 06.05.20 at 4:15 pm

@16 Anthony;

If you really wrote what Garth quoted in his blog entry for today:

When you brought race into it, you lost any respect from me.

Investing is not about gender, age, or race. It’s about being smart.

Figure it out. Garths’ given you the keys, up to you now.

#47 Linda on 06.05.20 at 4:15 pm

While I can sympathize with those who through no action of their own were summarily laid off due to Covid, I have long since lost sympathy to those who snipe, denigrate & flat out state that those who have must have somehow manipulated, cheated or rigged the system in order to succeed. Further, that those people – apparently anyone who 1) owns a property; 2) isn’t in debt & especially 3) has actual money/liquid assets in excess of what is absolutely necessary to pay the monthly expenses should be 1) not paid because they are ‘greedy’ (aka landlords) & 2) should pay higher taxes. Whether that be via higher income tax brackets or by enacting higher or new levels of taxation on assets, the theme ‘tax the rich’ remains.

Frankly, I see no reason why those who made imprudent financial choices should be rewarded by taking from those who did make those choices. The vast majority of ‘the wealthy’ did NOT inherit their wealth. They built it, usually after many years of scrimping & saving. If someone would prefer to spend instead of save that is their choice. Just don’t expect others to pay for your party.

#48 Brian Ripley on 06.05.20 at 4:16 pm

Tale of two cities… my Vancouver vs Toronto Housing chart is up:
http://www.chpc.biz/compare-toronto–vancouver.html

MAY 2017 SFD PEAK price 51% more in Vancouver
than the MAR 2017 SFD PEAK Price in Toronto

MAY 2020
SFD price 53% more in Vancouver vs Toronto

MAY 2020
T-House price 29% more in Vancouver vs Toronto

MAY 2020
Condo price 8% more in Vancouver vs Toronto

MAY 2020
1.2 more Listings in TOR than VAN
3.1 x more Sales in TOR than VAN
Monthly Absorption Rate TOR:VAN = 2.7

#49 Democracy Is Mob Rule on 06.05.20 at 4:17 pm

#15 Ace Goodheart on 06.05.20 at 2:44 pm

Six months ago I would have said that there was no way the USA would descend into chaos and street fighting.

Now I am watching it happen in real time.
__________________________________________

The other day when I went to do a Google search I noticed their site said they support all those who are searching for racial equality. I guess that’s the new politically correct term for what we used to call rioting.

#50 NFN_NLN on 06.05.20 at 4:27 pm

#43 Democracy Is Mob Rule on 06.05.20 at 4:06 pm

They have a form you can fill out to support pogey for everyone. This is the first step to communism.

_________________________________________

According to a former KGB defector the first step is purging the useful idiots. They have their work cut out for them in Ontario, lol.

https://www.youtube.com/watch?v=K4kHiUAjTvQ

#51 Erection Time on 06.05.20 at 4:28 pm

Garth said erection tee hee :)

Great post today !

#52 Anthony on 06.05.20 at 4:30 pm

#26-Sail Away-“You’ve clearly already made up your mind. Why would we waste time sharing knowledge when you just want to argue?”

Massive fail. I don’t need your knowledge, just a defense of “investing” in a stock market propped up by government largesse.

If you are a capitalist, why are you giddy over government pogey propping up the markets? You won’t ever answer, so you’re right, it is a waste of time.

#53 IHCTD9 on 06.05.20 at 4:30 pm

#10 AB Bound on 06.05.20 at 2:32 pm
#3 Captain Uppa
I knew taking some of my money out of the market was wrong, but since I temporarily lost my job, I did it out of comfort for my family. Just to know the cash was there in case and not subject to market fluctuations.

Well, we survived just fine and I did not need any of that money I took out. Lesson learned. I’m relatively young and will not make the same mistake.

—————————————

Did you have a fat 6 month emergency fund?
——

Don’t need one in Canada. We have ~ 20k set aside for surprises. I’ve been laid off since the end of March. Never touched it.

If Warren Buffett was a Canadian, he would have qualified for CERB.

#54 Yeah, Cottage Time! on 06.05.20 at 4:33 pm

You say,

“stay the hell away”

and

I say,

” nooooo way!”

See you at the local LCBO store!

xoxo

#55 Do we have all the facts on 06.05.20 at 4:33 pm

What a world we live in. Feed us a stream of bad news and we respond with a global lockdown. Loosen up the strings on the lockdown allowing a portion of the workforce to go back to work and we begin dancing in the streets.

It is way too early to assess the short and long term impact of the Covid-19 lockdown on the Canadian economy. What we can assess however is the impact that Covid-19 had on the health of over 95% of the Canadian labour force. The virus is probably still very contagious but the fear of death from Covid-19 within the general population has waned in light of factual evidence. Big overreaction says I.

Dozens of very large companies across North America have been forced to the brink of bankruptcy and have become dependant on billions of dollars of government aid to survive. It has become clear that many bricks and mortar retail and restaurant operations are on the ropes and a sizeable percentage of these small businesses will not survive the lockdown.

Our housing industry will be impacted by reduced immigration and increased unemployment and no one seems certain of the short or long term damage to the average Canadian homeowner.

The simple fact is that employment in nearly every sector of the Canadian economy will shrink, not expand, in 2020. Whether we like it or not the consequences of unemployment will eventually have an impact on the income generated and profits realized by thousands of companies, including our esteemed big banks.

Both the Canadian and American economies are driven by domestic consumption based on employment. Any reduction in employment ripples through the economy like a tsunami and very few consumer based companies will avoid some loss of income.

I am sure every Canadian would like “things” to return to “normal“ as quickly as possible but we need much more than “wishing and a hoping” to recover from this train wreck.

impact that

#56 Blacksheep on 06.05.20 at 4:34 pm

(A) “Massive government and fiscal stimulus has propped up markets, rescued corporations, dropped financing costs and lubricated credit. Markets love it. Pain’s been transferred from the economy to the taxpayers.”

(B) “It’s a shame millions must live off the government’s largesse when they cannot survive eight weeks on their own. That some abuse this is indefensible. ”
——————————
Garth, I’m not clearly seeing the difference between: Corporate welfare (A) and main street welfare (B) ?

Don’t get me wrong, I’m not “railing against” it and do completely “accept it”, In fact I actually embrace and have aligned my $ investments, with this very predictable outcome.

I have been pointing this reality out for the past six years, that T2 (any politico) will BUY your vote. Their careers live and or die, based on the value of said Indices and the value of primary residential real-estate owned by 70% of the voting population.

Many old school ‘sound money’ folks cannot get their heads around the above.

These people expect fair taxation, low inflation (2%) and a home to cost 3X annual incomes. They still believe sovereign currencies should be backed by tangible assets and that a country, must run its finances, just like you or I would run our household finances, which anyone paying attention since 1971 has realized, Is just not how things work.

Is any of this fair?

Hell no, but at least we now know, were we stand. We have been living with stealth MMT governments (Nat. debts really don’t matter) for many decades, its just taken the final death throws of a 75 years debt super cycle (GFC) and now a pandemic, to force this reality out of the shadows.

Welcome to the Dark Side….

Corporations provide jobs to millions. Get it now? – Garth

#57 FreeBird on 06.05.20 at 4:34 pm

NYC police officers resign over old man hit in head. I guess he was dangerous…

https://www.google.ca/amp/s/www.politico.com/amp/news/2020/06/05/buffalo-police-new-york-city-protests-303168

#58 Oracle of Ottawa on 06.05.20 at 4:34 pm

Here, here. I like the enthusiasm in the stock market, but I’m still keeping a small percentage in gold. Think of it as if you were on the ark (as if there were such a thing) and after 180 days on the ocean you saw a bird. The pandemonium would erupt, but it’s just a freaking bird which may have come from a thousand miles away. This is what the stock market feels like now. If you lose a million jobs and you gain back 10% its good…but not great. We’re still 90% down and have a long way to go. But I’m quite content where things are going.

Gold lost $39, or 2.5% of its value, today. Feel better? – Garth

#59 Sail away on 06.05.20 at 4:34 pm

#27 SunShowers on 06.05.20 at 3:22 pm

People like saying on here that CEOs and investors deserve higher pay than their workers because of “risk.”

—————-

I take whatever pay makes sense. That could be nothing because we’re making nothing or that could be $350k because we’re doing just fine.

My staff? They all make their salary regardless plus good bonus if we do well. They get none of the downside and a portion of the upside.

We know your mind is already made up, since many blogdogs have already told you the same thing and you continue to trot out this same tired trope.

Put down the Upton Sinclair. Those days are past.

#60 LP on 06.05.20 at 4:34 pm

#6 Faron on 06.05.20 at 2:23 pm

As for the wild class debates going on here, advice I can apply to myself and that may apply to others is: write out my pithy self righteous comment. Wait 20seconds. Dial the tone down to 25%, ask if I would say this to my mother. Hit send. Obviously I don’t always do it, but am trying to use that as a guiding principle.
************************

Good advice. Sometimes I wait 24 hours then delete it anyway. I’m not as smart as I think I am.

F73ON

#61 FreeBird on 06.05.20 at 4:37 pm

Correction officers didn’t resign they were suspended.

#62 Anthony on 06.05.20 at 4:37 pm

#31-fartz-“If you consider govt business grants to keep companies afloat during the pandemic as pogey….well…..there is no point arguing,
Keep collecting your CERB cheques and rail on about the unfairness of the teat sucking corporations.”

I’m not CERB eligible. So let’s calm down, and address my argument. If you are a capitalist, how do you defend profiting from government and central bank machinations to prop up artificially high stock markets?

And yes, government grants are pogey. Federal Reserve buying ETFs and buying bonds, all pogey. No wonder you welfare queens are so sour on “maple” and giddy over the US.

Now go ahead and make a bunch unfounded accusations and ignore the issue.

#63 Oracle of Ottawa on 06.05.20 at 4:39 pm

My intended blog had to do with the number of people who are financially illiterate as a result of listening to Mom and Dad or the real estate cartel. There really should be a financial course in high school and get these kids on track, or at least thinking about it, before they enter the work force. Imagine how much wealthier everyone would be.

#64 dogman01 on 06.05.20 at 4:40 pm

Freedom of speech, my comments yesterday were not supporting Stockwell Day’s assertion, instead supporting his right to throw out the idea. What disturbs me is the consequences of throwing our unpopular or controversial ideas is becoming too high and appears to me to be a concerted means to control speech. A narrowing “Overton Window”. The last thing I want to hear is constant Corporate spokesman babble, “our valuers are your values”, “be the change”, etc. etc., and our MSM certainly stays in the “Box”.

I learn from people smarted than me and we need Mavericks….

Censorship is the tool of those who have the need to hide actualities from themselves and from others. Their fear is only their inability to face what is real, and I can’t vent any anger against them. I only feel this appalling sadness. Somewhere, in their upbringing, they were shielded against the total facts of our existence. They were only taught to look one way when many ways exist. Charles Bukowski

………………………………………………………….

A few Garthisms on his topic today:

Concentrate on using you life to achieve some good for yourself, and others. Railing against the gods wastes your most precious gift, while changing nothing. — Garth

This is Darwin, baby. And you’d best know that now.” – Garth Turner

“Ideology and arrogance are the fuel of younger men. But mileage counts more.” – Garth Turner

“Own the banks, don’t owe them!” – Garth Turner

Of course, nobody listens to me. I’m like the guy who gives you the colonoscopy. You know when you hear the rubber gloves snap you should have eaten way more fibre. It’s the epiphany. – Garth Turner

“You are supposed to read this drivel, throw it into the hopper of your brain, then come up with your own opinion. It’s called, um, thinking.´- Garth Turner

“It’s not what you can carry that counts, but what carries you”. – Garth Turner

And

“When a bat in China ends up sickening your Granma in Kelowna, it’s time to reconsider a few things.” – Garth Turner

#65 I dedicate this Haiku to, Stay the hell away Guy on 06.05.20 at 4:45 pm

My Cottage

Sunshiny weekend
A delightful cottage drive
despite the grumpy man

#66 Yanniel on 06.05.20 at 4:45 pm

“let’s talk about social conflict, the wealth divide and growing tensions on a certain pathetic blog”

If you think your narrative have nothing to do with that then I urge you to use an impartial machine/algo to decipher the sentiment of your posts. You did that to the comments section via IBM Watson at some point, it is just fair you are gauged by the same scale.

This is how. Pick any random blog post, copy-paste the content of the body into the “Sentiment Analysis” tool embedded for free https://monkeylearn.com/text-analysis/. (Disclaimer: I am not affiliated in any way with this website and yes, I use my real name).

Today’s post, your words, score a “Negative” sentiment with a 94.4% of “confidence”.

If you remove just one word “Arousal” (the title) and keep the rest, then the confidence of that negativity grows to 98.4%.

We leave in a world of narratives where truths or fallacies are not as potent as the narratives. Money managers, asset allocators are one of the biggest missionaries promoting narratives. So are politicians.

I’m sure that made sense to you. – Garth

#67 Wrk.dover on 06.05.20 at 4:46 pm

Whom ever bought my Suncor at $44. is sure liking Poloz more than I.

Uppa 10% today!

#68 FreeBird on 06.05.20 at 4:48 pm

Shoved not hit in head. Lesson to not post too fast esp when hot. Still not justified. A friend is retired police officer so hard to see these stories. I linked article in first comment. Time to unplug media.

#69 Darren Smithie on 06.05.20 at 4:51 pm

UBI is basic universal inflation. First socialism and then communism and then camps and lives gone for good. Young and naive, brainwashed is going to make Canada a 3rd world crap hole.

#70 Camille on 06.05.20 at 4:52 pm

Reading yesterday’s blog I realized that the reason that some were made whole was because they never went as high as those who held long bonds; long bonds went up same time as stocks late 2019 early 2020 – bad sign?
If market went down 35% and up 20% no rebalancing at any point made anyone whole, in a stock bond portfolio. Pardon the language, I’m not calling bullshit on anyone but I see no plausible explanation yet.

#71 Jim on 06.05.20 at 4:54 pm

Good article – you did a good job of breaking down the strawman letter. But the writer is correct that if the Fed wasn’t printing all that money, your conclusion and the stock market would both crumble like a house of cards. I guess your lesson is probably that when government creates corruption that you can take advantage of, you should…

If the government didn’t print money there’d be no CERB to pay for the Internet connection of the guy who wrote me. – Garth

#72 Billy Boy on 06.05.20 at 5:03 pm

So far so good….we are just in the bottom first inning of a whole new ball game.

As the Brits say “Early days, early days.”

Let’s hope for the best and more printing to come. We can’t have one without the other.

#73 Yanniel on 06.05.20 at 5:04 pm

#63 Yanniel on 06.05.20 at 4:45 pm

“let’s talk about social conflict, the wealth divide and growing tensions on a certain pathetic blog”

If you think your narrative have nothing to do with that then I urge you to use an impartial machine/algo to decipher the sentiment of your posts. You did that to the comments section via IBM Watson at some point, it is just fair you are gauged by the same scale.

This is how. Pick any random blog post, copy-paste the content of the body into the “Sentiment Analysis” tool embedded for free https://monkeylearn.com/text-analysis/. (Disclaimer: I am not affiliated in any way with this website and yes, I use my real name).

Today’s post, your words, score a “Negative” sentiment with a 94.4% of “confidence”.

If you remove just one word “Arousal” (the title) and keep the rest, then the confidence of that negativity grows to 98.4%.

We live -corrected typo- in a world of narratives where truths or fallacies are not as potent as the narratives. Money managers, asset allocators are one of the biggest missionaries promoting narratives. So are politicians.

I’m sure that made sense to you. – Garth
———————————————-
Narratives can be “measured”, “charted”, “visualized”, “played like a movie” thanks to big compute, big data, natural language processing(NLP) and statistics. Narratives can be interpreted through the lenses of Game Theory (this is not a game but a science). If this does not make sense to you I suggest the Epsilon Theory blog. Very down to earth. Understandable by geeks and mortals alike.

#74 Sail away on 06.05.20 at 5:05 pm

#47 Anthony on 06.05.20 at 4:30 pm

#26-Sail Away-“You’ve clearly already made up your mind. Why would we waste time sharing knowledge when you just want to argue?”

————-

Massive fail. I don’t need your knowledge, just a defense of “investing” in a stock market propped up by government largesse.

If you are a capitalist, why are you giddy over government pogey propping up the markets? You won’t ever answer, so you’re right, it is a waste of time.

————-

Why would you think I care, or would ever defend government pogey?

I avoid taxes and accept largesse at every opportunity. Pretty sure that’s always been my theme.

Wrong callout. Not me.

#75 Billy Boy on 06.05.20 at 5:08 pm

According to another great financial blog WOLF STREET:

The industries with biggest job losses & gains. The unemployment rate would have been 16% if people had responded to the survey correctly, said the BLS; that would be 25.3 million unemployed. Abysmal.

American blog….I believe this assessment but with an election coming up….Think there will be accurate, TRUE numbers on anything this year

#76 mattbg on 06.05.20 at 5:09 pm

#13 AB Bound (“$19.7 Million dollars in gov Spending per death. Aren’t 80% also over 80 years old? Am I missing something here?”)

I agree with you in questioning the value proposition of all the COVID spending. But, your calculation is the easy one, not the right one. The right one is the amount per life saved, rather than per death, and with the models being so inaccurate it’s hard to estimate how many lives have been saved by measures meant to prevent healthcare resources from becoming overwhelmed.

However, the fact that average age of each presumed life saved would probably well north of (age) 60, or that each life saved would have been of someone likely to die young due to comorbidities, I guess the economic value question remains, if we are going to take the economic approach to valuing life.

The one metric I am really interested to see is how many deaths we end up with overall in 2020 and 2021.

What if we find that a would-be flu death became a COVID death, some other future natural causes deaths got moved 3 months earlier, and that a bunch of other deaths that occurred would have occurred with or without available healthcare resources. We’ll never be able (or have the political interest) to answer those questions, but it’s feasible that we spend $200B+ and end up having mostly saved lives due to car crashes, workplace accidents, and other fatalities that couldn’t happen during lockdown.

#77 IHCTD9 on 06.05.20 at 5:12 pm

#23 Ace Goodheart on 06.05.20 at 3:14 pm
So despite all the mess, the Toronto real estate market continues to plug along in its usual insane sort of way.

For just under one million CDN dollars, including land transfer tax and legals, you can live like the Queen of England in this posh, upper class home worthy of mention on an episode of “Cribs”, located in an exciting and exclusive Toronto neighbourhood:

https://www.bungol.ca/map/43.657331&-79.484974&15?listing=155-priscilla-avenue-york-w4781779-4130525

Doesn’t it just make you feel like you won the house lottery?

Everything about that place is an abomination. Especially that fence out back.

That is a 125k fixer-upper starter home for lower income folks.

900k should get you something that you can be proud of, not embarrassed…

#78 John Dimas on 06.05.20 at 5:16 pm

Jim, let’s let it like it really is, if it was not for the decades of manipulation of pushed down, crashed interest rates that the central banks from U.S. Federal Reserve to Bank of Canada, ECB, Bank of Japan, Reserve Bank of Australia etc. etc. all that money they printed would be impossible to pay the interest on it.

They could never do all this money printing because we would all be like Venezuela by now. Imagine 10% on $4 trillion debts on all provincial, municipal, Federal debt is $400 billion a year interest without compounding , rolling over the bonds, debt each year compared to only $65 billion interest paid today a year on all this total government debt load.

It is $335 billion a year to start in lower interest costs, even at 5% interest rates, it would still be $168 billion a year in less interest paid a year. This is why they crashed interest rates to precisely do their social engineering and social programs.

Even a local MP John Cannis with Jean Chretien, Paul Martin Federal Liberals had letters sent in the mail back in the 1990’s how they were saving Canadians billions in interest on their mortgages, debts etc. The Bank of Canada was doing it all, crashing the interest rates and working with the Federal Liberals and other governments. It is in their best interest meaning governments, corporations, real estate, building industry and other lenders etc.

Bank of Canada is not independent of government, they always work together for their debt piling, debt accumulation strategy at very low interest rates since the early 1990’s. It has nothing to do with low inflation, that is bull, property taxes to water bills, electricity bills, gas, rent, housing, mortgage costs, car payments, food, car other insurance etc. etc. does not have 1.5% or 2.0% annual inflation rates. They are at minimum average 5% to 7% annual inflation rates. You missed the ball on this one Jim and many others that never mention this.

#79 Freedom First on 06.05.20 at 5:16 pm

Best Post Ever!

Thank you, and Dog bless you Garth.

Freedom First

#80 Paul on 06.05.20 at 5:18 pm

#15 Ace Goodheart on 06.05.20 at 2:44 pm
Looks like despite the best intentions of sane, intelligent and level headed Americans everywhere, Dr. Trump is going to force the USA into a civil war.

Will be interesting to see what that does to portfolios.

Six months ago I would have said that there was no way the USA would descend into chaos and street fighting.

Now I am watching it happen in real time.
————————————————————————————————
‘Trump is going to force a civil war’ just how is this his fault?

#81 Sail away on 06.05.20 at 5:18 pm

#65 I dedicate this Haiku to, Stay the hell away Guy on 06.05.20 at 4:45 pm

My Cottage

Sunshiny weekend
A delightful cottage drive
despite the grumpy man

———

Title: Sheesh

An inept haiku
Cannot count the syllables
Oh boy. Try again.

#82 Bob in Hamilton on 06.05.20 at 5:22 pm

“Thinking everybody with more than you is just “sitting at the computer clicking stock purchases” is puerile. Grow up.”

Exactly. To that jealous little child that was quoted at the beginning of the blog, I have only one thing to say. Do you want some cheese with that whine?

#83 Attrition on 06.05.20 at 5:27 pm

Why do I get the feeling that we blawg dawgs are missing the point of pretty much everything that’s going on these days…

Forget the markets, forget the virus. Focus on things that truly matter. This is about rights and power and control.

Social media has hastened the demise of free speech and put corporations in the position of private arbiters of right and wrong.

That should be chilling to the bone. I know many won’t care, but it is a massive shift. Trump is right to threaten to revoke this power. Anyone should see that. All speech is free speech, end of story.

The media is pushing an agenda that is totally biased and obvious and unfair. Russian collusion really was a 3 year hoax–even if you loathe Trump, this hoax should infuriate you.

But nothing.

Together, social and traditional media need to be regulated to report the news and not make it up. But we’re letting them make it up. Gov’t bought and paid ’em with our taxes to do so. This is a crime.

An independent media is core to a functioning democracy. We no longer have that: they’re all CBC now.

Perhaps the pace of change is catching us off guard. We’ve gone from social justice to condoned acts of injustice for the special few.

We’ve gone from letting prisoners out of prison early to avoid a cold, to ‘de-fund the police’ in the blink of an eye.

While I’m all for smaller gov’t, the police are the last place we should look to cut. Start with any university ‘studies’ faculty.

The Libs passed bill C-16 which legislates protection of special groups from words they don’t want to hear by creating this thing called hate speech, as if it’s somehow dangerous for people to here reprehensible words.

And back to the virus: we’re living in lock down.

All new powers that governments have granted police and bylaw officers to infringe on our rights, telling us what risks we can choose to take under the guise of protecting us. This is insane.

I sound like a broken record, but people in Canada really need to wake up and see the threat to democracy that is literally sheltering on the doorstep.

I don’t want to sound like TurnerNation but this is the first time since the Cold War that these extreme left ideals have so successfully infiltrated almost every level of public discourse.

I don’t know the end game, but I do know that what’s happening now is a coordinated or opportunistic attack on individual liberty.

And this matters far more that markets.

#84 Attrition on 06.05.20 at 5:29 pm

Typo: HEAR not here…

#85 jess on 06.05.20 at 5:34 pm

Ruja Ignatova is accused of masterminding a massive cryptocurrency scam that may have defrauded investors out of as much as US$16 billion
https://www.occrp.org/en/daily/12109-us-indicts-co-founder-of-onecoin-ponzi-scheme
Cryptoqueen: How this woman scammed the world, then vanished

https://www.bbc.com/news/stories-50435014
Friday, March 8, 2019
Manhattan U.S. Attorney Announces Charges Against Leaders Of “OneCoin,” A Multibillion-Dollar Pyramid Scheme Involving The Sale Of A Fraudulent Cryptocurrency
Current Leader Konstantin Ignatov Arrested at Los Angeles International Airport
https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-announces-charges-against-leaders-onecoin-multibillion-dollar

#86 Faron on 06.05.20 at 5:38 pm

#77 IHCTD9 on 06.05.20 at 5:12 pm

“Everything about that place is an abomination. Especially that fence out back”

—-

I think the ’90s furniture makes up the $775k balance. Estate sale?

#87 jerry on 06.05.20 at 5:40 pm

“Changes in the labour market represented a recovery of 10.6% of the COVID-19-related employment losses and absences recorded in the previous two months,” said StatsCanada

A 10% recovery is terrible considering the govt are paying the salaries for many hourly workers. Of course they are going to hire people when the labour is almost free. We won’t know what the real numbers are until rent relief and wage subsidy programs end. If a second wave of the virus hits in the fall like many predict you will not see anywhere near the support provided during the first wave

#88 Steven Nicolle on 06.05.20 at 5:40 pm

The restaurant industry is done. Use to be great money but with the changes now they are making cause of Covid and the trajectory down it has been making the past 20 years it will not pay anymore. When I started back in 1980 it was full time with benefits in nice hotels. Now that is gone. Too bad.

#89 crowdedelevatorfartz on 06.05.20 at 5:42 pm

Goodness.
So many angry people who feel that financial investment is a greedy, leeching, welfare grab by investors and industry.

I work very hard to earn extra money to invest.
I then risk that hard earned money by investing money in businesses that may crash and burn or grow.
I dont have a magic crystal ball.
Its a risk I’m willing to take.
No one else is going to get burned except me.

If you dont have any money to invest then dont blame the people that do.
We risk OUR money.
Not yours.
Not the govts.
And for taking that risk we pay taxes to the govt who risked nothing when we cash in on a “win”.

Taxes that then help to pay for welfare, roads, hospitals, etc etc etc.
Is it really that hard to understand or do people just not want to hear the truth?
Perhaps the anger just jealousy?

#90 Capital One on 06.05.20 at 5:51 pm

#69 Darrin Smithie and
#43 Democracy is Mob Rule and
probably most people reading this blog

There is a Libertarian case for UBI. So the opposite of socialists and communists.

https://www.cato-unbound.org/2014/08/04/matt-zwolinski/pragmatic-libertarian-case-basic-income-guarantee

https://stanfordsphere.com/2018/02/24/the-libertarian-case-for-universal-basic-income/

So … bring in UBI but kill welfare, OAS, RRSP deductions, minimum wages, student loans, CPP, capital gain exception on home sales, boutique tax credits, etc. And all of the bureaucracy supporting them.

CO

#91 Anthony on 06.05.20 at 5:52 pm

Corporations provide jobs to millions. Get it now? – Garth

No. Customers provide those jobs. If a company can’t make it a couple of months without government pogey they have no business being in business. They should go to the private sector for finance, the great free market solves all.

Government actions shut down travel. Air Canada lost 95% of its business and burned through its cash supporting 40,000 employees – until it couldn’t. So, poof, no more national airline? Forty thousand more jobless? No government responsibility for its edict? You have much to learn. – Garth

#92 Steve French on 06.05.20 at 5:56 pm

Who here misses old Smoking Man…

I still laugh at that time he was writing his “novel”….

Smokey- hop on and give us an update?

Steve O

#93 D.D. Corkum on 06.05.20 at 6:04 pm

#16 Anthony on 06.05.20 at 2:45 pm

“What makes “investing” in markets propped up by government […] more virtuous than taking CERB?”

—-

False argument. Has any investor said there is a problem with taking CERB, EI and other such programs if you legitimately qualify?

Setting that aside, surely you realize that it is the very propping up of worker incomes (through various programs) which are giving stock markets future earnings to look forward to?

I think you actually do, the way your question is kind of worded. It seems you are purposefully itching for a fight when you already know the answer.

#94 n1tro on 06.05.20 at 6:06 pm

Can anything be more shameful than this?

https://www.msn.com/en-ca/news/canada/trudeau-takes-a-knee-at-anti-racism-protest-on-parliament-hill/ar-BB154x9v?ocid=msedgdhp

#95 The Reasonable Man on 06.05.20 at 6:06 pm

I acted on your advice, by doing nothing after some serious drops in my equities, and now my portfolio is back to where it was in late January, probably even better after today’s numbers.

Cheers, and thanks for continually encouraging me stay the course and play the long game.

#96 JUST LQQKING on 06.05.20 at 6:08 pm

#47 Linda
it’s been said many times and many ways….but it never gets old…well said Linda!

#97 AB Bound on 06.05.20 at 6:11 pm

#76 Mattbg
I agree with you in questioning the value proposition of all the COVID spending. But, your calculation is the easy one, not the right one. The right one is the amount per life saved, rather than per death, and with the models being so inaccurate it’s hard to estimate how many lives have been saved by measures meant to prevent healthcare resources from becoming overwhelmed.

However, the fact that average age of each presumed life saved would probably well north of (age) 60, or that each life saved would have been of someone likely to die young due to comorbidities, I guess the economic value question remains, if we are going to take the economic approach to valuing life.

The one metric I am really interested to see is how many deaths we end up with overall in 2020 and 2021.

What if we find that a would-be flu death became a COVID death, some other future natural causes deaths got moved 3 months earlier, and that a bunch of other deaths that occurred would have occurred with or without available healthcare resources. We’ll never be able (or have the political interest) to answer those questions, but it’s feasible that we spend $200B+ and end up having mostly saved lives due to car crashes, workplace accidents, and other fatalities that couldn’t happen during lockdown.
—————————————————-

It was definitely just a thought that I had. I think you’re correct in saying that it is a question of the number of lives saved. Of course this number would be theoretical and not possible for us to find out at this point. If I were gambling though, I’d bet if we had “locked down“ for 2 weeks and socially distanced after that, the health care system would have been able to tolerate the cases. Can’t back this claim up of course, but 7600 deaths thus far in relation to economic impact is a joke.

#98 BK on 06.05.20 at 6:15 pm

Erection…. ha

#99 Kevin on 06.05.20 at 6:15 pm

Yep, I am one of those investors. Silver spoon guy.
Grade 11 out of Northern Ont. Did a career in the Navy. Did a stint in a foreign Navy. Retired from two international corporations. Never drew one EI check and paid Canadian taxes as a single claimant for 45 years.
So I guess I should be embarrassed because I am financially stable now.

#100 SandMan on 06.05.20 at 6:17 pm

Garth,

You keep bringing it up.
“Wealthy people own. Other people borrow.”

Wealthy people own because they can afford to gamble.

How rich were you when you were on Global News?

As I have written in a book in the distant past, I strove to have a million in net worth by age 30 (when a mill meant a little more than today). I made it. Nothing inherited. No gambling involved other than starting a few businesses. And it was CTV. – Garth

#101 NoName on 06.05.20 at 6:31 pm

#83 Attrition on 06.05.20 at 5:27 pm

Social media has hastened the demise of free speech and put corporations in the position of private arbiters of right and wrong.

Social media dident hastened of free speech yet, but they are working on it, what it did its just alowed for iformation to travel laterarly insted of top down.

Its a same reason why rnb/pop and country music is is experiencing growth and rock music its on shaky lags, there is no music store clerks to “recomend” and answer the phone to reserch groups to say what is selling.

Friend of mine works on radio he steel plays great music, all bands we like, last 20 yrs and counting why do you think that is?

Look in to georgia dock a price index, it is about chiken, but but in my mind somehow it relates to music and “infrmation” industry…

#102 willworkforpickles on 06.05.20 at 6:34 pm

1500 new covid-19 cases per day in hot Brazil now in their coldest month of the year, where its averaging 22 degrees C daily. Two things have been said recently about C-19…It’s effects are diminished little by warm and humid weather as seen currently in Brazil and other warm climes. Masking is only effective with social distancing. Not seen with millions out protesting shoulder to shoulder daily across America.
Crisis? nah…what crisis. My stocks have **doubled in the last 2 weeks.

#103 willworkforpickles on 06.05.20 at 6:37 pm

Really…they have. Doubled!

#104 Reximus on 06.05.20 at 6:46 pm

#88 “Can anything be more shameful than this?”

why…please explain your comment?

#105 Nonplused on 06.05.20 at 6:46 pm

“Let’s try being honest. When you’re rich, white, sitting at the computer clicking stock purchases, scamming the system, and benefitting from governments propping up the stock market — you’re a hero. When you’re a worker who has lost their job and relying on EI — you’re a bum, a loser and a problem. WHY?”

———————–

Instead I would ask why these types always have to put “white” behind “rich”. Do not “rich black” people also buy stocks? What about the Chinese? There are currently just as many billionaires in China as there is in the US. The 2 richest families on my little culdesac are Chinese and Indian. The sort of rich where they think nothing of dropping $70,000 on a grand piano or driving an A8. We have a black couple too but I am not sure how rich they are. Nice house though. And lots of cars. And big parties.

This is an upscale neighborhood with 9 acreages on our little culdesac. Of those only 5 are occupied by “white” families. While whites remain slightly in the majority, being wealthy doesn’t seem to be something that is exclusively white. I detest people who say it is because it belittles the success these people have had.

I could go on and on so I will. My doctor is not white. My dentist is not white although she employs several white assistants. Many of the engineers and accountants I have worked with over the years are not white. My most recent supervisor was not white.

We have to stop with this sort of race-baiting. It gets us nowhere. Am I saying Canada is free of racism? No. But it is one of the best places in the world to live no matter what your skin color is. And it’s getting better so far as I can tell because the kids don’t seem to care. They all go to school together, play soccer together, and hang out together. They even date. They don’t care.

#106 VicPaul on 06.05.20 at 6:47 pm

#6 Faron on 06.05.20 at 2:23 pm

…..put $500 into a balanced mutual fund with as low MER as possible. Better than nothing. No big lumps of cash are needed. Wish they taught it in highschool.
*********
While I agree that high-schools could tweak course offerings to do a better job teaching young people the importance of proper money management/investing (particularly, how to use/not abuse credit) – I really believe that is a parenting issue. I didn’t learn from my Dad (I learned the value of a strong work ethic and commitment from him) but watched my affluent Uncle (his little brother) earn/manage/invest and it motivated me to teach myself. You’re right – with quality guidance from Garth (I’ve read him since his newspaper column days), it’s not that hard.

______ Faron

… advice I can apply to myself and that may apply to others is: write out my pithy self righteous comment. Wait 20seconds. Dial the tone down to 25%, ask if I would say this to my mother. Hit send. Obviously I don’t always do it, but am trying to use that as a guiding principle.

*********

Intelligent, compassionate people are reflective thinkers – they care about the contributions they bring to/share with the world. Your comment displays this – well done, good on ya. (I’ve done the same lately – on a few, I’ve not hit the send button).
Although I don’t share your neo-Marxist, PC ideology, I recognize your intelligence and caring about our world – and that’s never a bad thing.
Thanks for that. )

ps. Sold some XUU and ZSP fifteen minutes before close today – Thanks to a fellow blogdog for the reminder to take profit.

M56BC

#107 active on 06.05.20 at 6:55 pm

portfolio up $33K after today’s stock market bounce…lol, keep it coming!

rich hold assets, rest hold debt….yep. and it will always be that way.

#108 McSteve on 06.05.20 at 6:56 pm

I was overweight equities going into Covid. After watching the run up I started rebalancing today now that my losses have been recuperated. Put a bit in bonds and cash when I see S and P trading at 27x. But bonds are likely maxed to at 0.25%. Startung to wonder if paying off 2.8% mortgage is my best play. Nothing else makes sense anymore.

#109 VanIsle Retiree on 06.05.20 at 6:57 pm

A couple thoughts I have been wondering about.
1. Why did we need a whole new gov’t program for CERB? What was wrong with just updating EI a bit (e.g., no wait). Max $857 per week, depending on earnings. A few get more. Many get less than $2000, based on income.
2. Why do all OAS recipients get $300? Many don’t need it. We are donating ours to charities that are struggling right now. We hope lots of others will join us!
3. I recognize that some businesses won’t survive this situation. Just like some individuals. Some businesses and individuals were walking a tight rope and it is true that they will end up paying for their situation. For some, that is unfortunate because they were just starting out. But certainly, at least in the case of businesses, others will move in to fill the gaps.
4. Is all this stuff taxable?
Good to see the job numbers – hopefully they continue in that direction. ‘Cause I am getting nervous about how we are going to be paying for all this.

#110 SeeB on 06.05.20 at 7:04 pm

#218 IHCTD9 on 06.05.20 at 12:10 pm
#213 SeeB on 06.05.20 at 11:27 am

I don’t think I agree that the legacy of the past doesn’t haunt the present, …
—-

Interesting, so if an offence against a particular group is rectified, said group can still piss and moan about it till the end of time?

—————————————-

A lot of members of these paticular groups would argue it was never rectified, or, what was done did not equate to complete rectification. How do you measure the impact of what was done in the past has on the present? What makes you, or any of us qualified to say “well, that’s already been fixed so shut up!” What is “fixed” exactly? Who gets to say “it’s fixed”?

For instance, we are still using the Indian Act in Canada, which was first written in 1876. Sure there’s been many amendments over the last century and a quarter, but, it’s still the same document at it’s core with respect to how First Nations are administered by the Federal Government. If you were to tell 100 First Nations people that Canada as a whole is today a post-racist country, despite the continued existence of this act, how many do you think would agree?

#111 Reximus on 06.05.20 at 7:06 pm

I tell you something I saw at the Toronto BLM march today gives me hope for the next generation…there was a large peaceful demonstration downtown today that went by my office so I went down to get a feel for it, and two things stood out: the average age was young maybe 20 (not surprising) but the march was at least 70% white or non-black kids.

the other thing is that the businesses on the route spent a LOT of $$ putting plywood in front of their stores…I mean huge dollars worth so I assume the big march hasnt happened yet. If you need cheap plywood, go to Toronto on monday

#112 David on 06.05.20 at 7:09 pm

Was really struck by the surge in the US Energy stock surge today.

#113 Barb on 06.05.20 at 7:14 pm

#64, thanks for reminding us of those brilliant Garthisms.
Hope someone who has been a blog dog from the outset is consolidating all of them into a book!

#114 Ponzius Pilatus on 06.05.20 at 7:16 pm

Garth is pumped and feisty today.
Ready to get back unto the saddle and fight for what’s right, Cowboy?

#115 Ponzius Pilatus on 06.05.20 at 7:24 pm

Personally, I’m too much of a chicken to invest.
But my wife is following Garth’s advise and she stayed invested during the last 3 months.
And now she’s regained all her losses and then some.
She’s been advising our son who’s just getting his feet wet.
He’s becoming quite the capitalist.
Well, whatever makes him happy is fine with me.

#116 Ronaldo on 06.05.20 at 7:30 pm

#103 willworkforpickles on 06.05.20 at 6:37 pm
Really…they have. Doubled!
————————————————————
Both of them?

#117 Retro Marxist on 06.05.20 at 7:38 pm

Bring your cameras if you are in DT Toronto! Riots might be coming!

https://www.blogto.com/city/2020/06/black-bloc-coming-to-toronto/

#118 Democracy Is Mob Rule on 06.05.20 at 7:53 pm

#90 Capital One on 06.05.20 at 5:51 pm

So … bring in UBI
____________________________________________

I agree that to make UBI work it would be necessary to get rid of all those other programs. However, I still think it encourages people to be lazy, just like all those other programs. If you feed the ducks, they won’t fly south for the winter.

As for eliminating the capital gains exemption on primary residences, I disagree. Inflation is caused by the government increasing the money supply faster than population or GDP growth. Then they tax you on it. I forget where I saw it, but someone said “Your house hasn’t grown. Your money has shrunk”. You still only have one house. Only the dollar value has changed. Governments like inflation because they can tax you on it. There is no tax on deflation.

#119 Captain Uppa on 06.05.20 at 8:00 pm

#53 IHCTD9 on 06.05.20 at 4:30 pm
#10 AB Bound on 06.05.20 at 2:32 pm
#3 Captain Uppa
I knew taking some of my money out of the market was wrong, but since I temporarily lost my job, I did it out of comfort for my family. Just to know the cash was there in case and not subject to market fluctuations.

Well, we survived just fine and I did not need any of that money I took out. Lesson learned. I’m relatively young and will not make the same mistake.

—————————————

Did you have a fat 6 month emergency fund?
——

Don’t need one in Canada. We have ~ 20k set aside for surprises. I’ve been laid off since the end of March. Never touched it.

If Warren Buffett was a Canadian, he would have qualified for CERB.

——————————————

Ditto.

At the time, I didn’t know how much my 20K’ish would go because everything was so unknown and degrading fast. So I took some money out of my portfolios just to make sure we felt comfortable.

On the other hand, I have unused LOCs with great rates, so yeah, bonehead move on my part.

But my wife approved, so that was a win.

#120 Blue Angel on 06.05.20 at 8:06 pm

#16
It is true, without the trillion$ from governments, the Dow Jones would be at 10000 pts today…

And unemployment would be chronic. Careful what you wish for. – Garth

#121 John in Mtl on 06.05.20 at 8:12 pm

@ #109 VanIsle Retiree on 06.05.20 at 6:57 pm

“…2. Why do all OAS recipients get $300? Many don’t need it. We are donating ours to charities that are struggling right now.”

” ‘Cause I am getting nervous about how we are going to be paying for all this.>

The same question haunts me regularly, that’s why I’ve invested the little extra GST the feds sent me, and which I really didn’t need. This amount and its ROI will go toward paying that higher tax bill we all know is eventually coming.

#122 AM in MN on 06.05.20 at 8:31 pm

A few observations here…

Having taken a couple of morning walks down Lake St. Minneapolis to view what resembled Beirut in the 70’s, and the then closing of every store and gas station for 30 miles for the next 4 nights, it seems surreal that in a couple of weeks it will all be forgotten, but it almost is already.

What you see on TV is not real, it is there to shock you. 10 or 20 miles outside a Democrat controlled City (which is all of the big ones), life is peaceful and prosperous, and there is a skilled worked shortage.

It’s weird for those who have lived in places like Canada or the US to see empty store shelves, and although inconvenient that you can’t find a bicycle or other outdoor equipment, printer, home office equipment, toilet paper and a few other items, free markets will soon fill the void.

I remember the Vancouver riot in 2011 when the Canucks lost and someone had thought it a good idea to bring 100,000 of the lower classes out of Surrey and the Valley into downtown and set up big screens. The Police vanished at the first sight of trouble, much like the Toronto Police at the G20, and that sent a signal to destroy and loot.

When the Minneapolis Police were ordered to stand down against the “peaceful protesters”, Target got emptied out in minutes, and the next night allowed for some serious arson training. But again, in two weeks it will just be yesterday’s news. The area on Lake St. in particular is a prime target for real estate developers, with some speculation they might have encouraged the arson. 2011 certainly didn’t stop Vancouver’s real estate developers.

Keep the markets free and the welfare programs short term and all will be well.

#123 Wrk.dover on 06.05.20 at 8:34 pm

#119 Captain Uppa on 06.05.20 at 8:00 pm

On the other hand, I have unused LOCs with great rates

—————————————-

Experimenting with crack or unsafe sex with a stranger would be safer than dipping an HELOC in times like this.

#124 Stone on 06.05.20 at 8:36 pm

#16 Anthony on 06.05.20 at 2:45 pm
I made the main post!

Garth and the blog dogs here still haven’t addressed my point, what makes “investing” in markets propped up by government and central bank pogey more virtuous than taking CERB?

I’m not going to get involved in a pissing match about whether I’m invested, the money I have, etc. Let’s just say I make a living and am put off by the back slapping high-fiving nature displayed here by people who claim to be defenders of capitalism and decry government intervention in markets.

You’re all on pogey.

Thanks for the blog, I appreciate the opportunity to engage in the discussion.

———

I don’t like what you all say…but I just keep coming back for it over and over again.

That sounds pretty dumb.

#125 IHCTD9 on 06.05.20 at 8:38 pm

#86 Faron on 06.05.20 at 5:38 pm
#77 IHCTD9 on 06.05.20 at 5:12 pm

“Everything about that place is an abomination. Especially that fence out back”

—-

I think the ’90s furniture makes up the $775k balance. Estate sale?
——

Maybe. Looks “as is”. I guess whoever is selling thinks a beaut like that sells itself for only 900 grand, ugly fences and old furniture not withstanding

#126 john m on 06.05.20 at 8:40 pm

Just had to say something!..The virus is not over in fact the numbers are rising every single day?Why are you trying to give the impression the virus is going away?..Suggest you check the numbers!

#127 Sydneysider on 06.05.20 at 8:40 pm

“just “sitting at the computer clicking stock purchases” is puerile”

If you invest with RBC, clicking on a day like today just brings up the error messages.

#128 Tony Attomaggio on 06.05.20 at 8:42 pm

Garth is right. The so called experts economists were saying 7.5 million job losses and 19% to 20% unemployment 1930’s depression era unemployment rates.

They were way off and wrong. Much lower unemployment 13.3% and 2.5 million jobs created. The main stream media is not mentioning this at all. In the next few months we will see at least another 5 to 10 million more job gains and even if we get a second covid wave, more unrest within 18 months to 2 years the U.S.s unemployment rate will be no more than 5% to 6% which is pretty amazing with all the crap thrown at America.

Remember what Garth said, don’t bet against America.

#129 Democracy Is Mob Rule on 06.05.20 at 8:44 pm

I remember when I went to Cuba on vacation many years ago. One of the tour guides told me they all got paid the same by the government. It didn’t matter if they were a doctor or taxi driver. Universal basic income. I wouldn’t call their system libertarian. More like communism. Fidel was a billionaire when he died, but that’s another story. Even though everyone is equal in communism, some are more equal than others.

Of course they get paid for showing up, not for output. I was shocked by the poor service at the tourist resort. It seemed like they had no idea of work or customer service. Even with the possibility of receiving tips the service was terrible and horrendously slow. Why would they work? They get paid even if they don’t. Some tourists were leaving tips out of habit, so I guess the resort workers considered that a second form of UBI. I’m old enough to remember when Canada’s NDP party sent representatives there to study the “worker’s paradise”. I wonder how that turned out.

On a tour of Havana I could see that nothing had been built or maintained since the 1950s, except for the tourist hotels built by European companies. Why would they build or maintain buildings when they get paid not to? There is a famous quote by a farm worker in the former Soviet Union (also not libertarian). It goes “We pretend to work and they pretend to pay us”. Canada can be just as successful as Cuba if we implement a universal basic income.

#130 crowdedelevatorfartz on 06.05.20 at 8:49 pm

@#122 AM in MN
” it seems surreal that in a couple of weeks it will all be forgotten, but it almost is already.”

+++

Well said.
Never underestimate the vapidity of the general population.

#131 Ponzius Pilatus on 06.05.20 at 8:51 pm

Employment numbers
Canada gained 290 k.
Disunited States of America gained 2.5 million.
OH Canada.

#132 Stone on 06.05.20 at 8:52 pm

#62 Anthony on 06.05.20 at 4:37 pm
If you are a capitalist, how do you defend profiting from government and central bank machinations to prop up artificially high stock markets?

———

Simple. That’s capitalism. There’s nothing to defend. Just because you haven’t figured it out, it’s not my problem.

Garth, could you add a skill testing question that we need to answer before one of us posts? I understand it would eliminate 90% of the posts but I think the quality would improve tremendously. I even have the perfect question:

Do you believe in the benefits of capitalism? Yes/No

Please and thank you.

#133 Blacksheep on 06.05.20 at 8:54 pm

Blacksheep # 56,

“Corporations provide jobs to millions. Get it now? – Garth”
—————————-
Not how I see things….

I own a very small (3 employees) corporation.

With out demand from my customers, I don’t need my employees. With out my employees, I can’t service my customers demands. If my little corp. closed it’s doors, my customers demands would remain, but simply find another provider for said services.

Corporations & Employees engage in a symbiotic relationship, but neither are doing anything without a customer. Corps receive beneficial tax treatment and limited liabilities, do to their risking of capital, but it does not make them special in society.

#134 Lowertown on 06.05.20 at 8:56 pm

#6 Faron on 06.05.20 at 2:23 pm

Very well said. Your comments are a net positive on the steerage section.

I didn’t learn about money management until I was in my 30s; also wish this had been a part of secondary school.

Of course, I would have had to be in class to learn anything…..

#135 Faron on 06.05.20 at 9:00 pm

#126 john m on 06.05.20 at 8:40 pm

Yeah I’ve been watching. There will be a lot of seeds for this thing right about the time fall pushes populous north america indoors. Even if you don’t think it’s severe, all gov’ts seem to. You can probably ignore it for a few months, but she ain’t done.

Heard a podcast calling the pandemic and our response to it the hammer and the dance. The initial wave was the hammer, the dance is the open, close, open, close sequence that may start soonish.

#136 DON on 06.05.20 at 9:01 pm

This is a financial blog. (Well, canines, too, with forays into auto mechanics, animal husbandry, sexual tension and epidemiology.) It dispenses advice on how to improve your situation. It’s not here to change the world…
***************

Can you imagine if this blog wasn’t around during this virus uprising. I’ve more or less read every comment (I learn to skip repetitions) but it’s a good way to get the jist of things. Of course never believe what anyone says to you (except your [email protected]) without verifiable proof. Do your research.

But this blog sets the baseline on an array of topics. The comments highlights the issues and in some cases provide more information which creates more options. The respectful debate is great and provides insights and wisdom that may take years to acquire. Invaluable information offered by all demographics.

Yah, dysfunctional, contentious etc at times…nevertheless the information offered by all participants is the best gift of all!

I am indebted to Garth and Dorothy for putting up with it but also to the blog dogs. There is no blog quite like this one. Wouldn’t ride out a storm any other way.

#137 Direct Investing on 06.05.20 at 9:01 pm

#127 Sydneysider on 06.05.20 at 8:40 pm

If you invest with RBC, clicking on a day like today just brings up the error messages.
___________________________________________

I applied for an account online and got an error message. Then I applied in person and got nothing. They say it takes 24 hours to set up. More like 24 days so far and still counting.

What online broker would the blog dogs recommend?

#138 IHCTD9 on 06.05.20 at 9:10 pm

#115 Ponzius Pilatus on 06.05.20 at 7:24 pm
Personally, I’m too much of a chicken to invest.
But my wife is following Garth’s advise and she stayed invested during the last 3 months.
And now she’s regained all her losses and then some.
She’s been advising our son who’s just getting his feet wet.
He’s becoming quite the capitalist.
Well, whatever makes him happy is fine with me.
——

Sounds like your son and I would get along great. I should take him out for a beer some night.

We’d talk about investing, Harper, heavy equipment, roofing, and tax avoidance. I’d give him a great “real-tree” camo ball cap, and a 10% off coupon for Bass Pro to take home with him.

#139 NEVER GIVE UP on 06.05.20 at 9:10 pm

It is not that Housing or assets like Stocks have gone up in value.

It is that the value of Money has declined in value.

Governments worldwide will not be able to stop using the tool of debasing currency.

If you keep adding zeros to currency it benefits the creditworthy who are borrowing money that is paid back in weaker dollars that are easier to get as time goes by. Wages and business profits become higher in dollar value. The debt does not go up in value save the interest rate.

The savers are the losers. Life is not fair. Never has been. If you cant beat em, join em.

If you hold assets like profitable companies that produce goods and services of value. Houses that become easier in time to pay off. Then you are going to win.

#140 Captain Uppa on 06.05.20 at 9:10 pm

#123 Wrk.dover on 06.05.20 at 8:34 pm
#119 Captain Uppa on 06.05.20 at 8:00 pm

On the other hand, I have unused LOCs with great rates

—————————————-

Experimenting with crack or unsafe sex with a stranger would be safer than dipping an HELOC in times like this

——————-

Who said anything about HELOC? I was referring to simple personal lines of credit.

#141 AACI Homedog on 06.05.20 at 9:20 pm

Hey, 126, John M…you must be looking at the total of the cases, not the current numbers. Try to keep up…

#142 NEVER GIVE UP on 06.05.20 at 9:21 pm

#92 Steve French on 06.05.20 at 5:56 pm
Who here misses old Smoking Man…
===================================
I miss the Smokey!
I don’t like his politics but I LOVE his drunken rants!
What an entertainer!

#143 DON on 06.05.20 at 9:23 pm

#185 crowdedelevatorfartz on 06.05.20 at 8:35 am

@#163 DON
“I could be wrong, but didn’t he already announce he is leaving soon?”

+++

I do believe you are correct and you earn a very for getting me to admit I was incorrect.( “wrong” sounds so negative in these pc times, dont you think?).
Anywho.
I’m surprised that Siddall is allowed to “nuke and pave” before he leaves… but maybe he’s been asked to do it BECAUSE he is leaving.
“Falling on his sword” as it were.
That way the Libs have someone to point the blame at long after they have left the building…….
******************

I must admit I was lazy, real lazy last night and the google finger wasn’t working. I was hoping you would answer, now I don’t have to check. (laughing with respect).

I am hoping that rare Golden Fartzy Award is my own special phone app that keeps me up wind of all Fartz.

One thing I have been noticing is people using the virus stall as a moment to detached from the pre-virus daily treadmill grind. I have seen people of all ages out exercising on my way to work. Most seem to be enjoying the simple things in life, gotta wonder if it will be a revelation and stick, or at least hang around to some degree.

#144 IHCTD9 on 06.05.20 at 9:32 pm

#119 Captain Uppa on 06.05.20 at 8:00 pm
Ditto.

At the time, I didn’t know how much my 20K’ish would go because everything was so unknown and degrading fast. So I took some money out of my portfolios just to make sure we felt comfortable.

On the other hand, I have unused LOCs with great rates, so yeah, bonehead move on my part.

But my wife approved, so that was a win
——-

I’m trying to convince Ms. IH to just invest the emergency fund. It’s been sitting around for over 2 decades and never gets used, been through 9/11, .com bust, GFC, and now CV-19. We also have a couple LOC’s and rates have been cheap for a long time, seems like a better idea to just borrow if needed (big if there too…) and put the 20k to work instead.

But, I think it’s a security blanket for her, she sure is hesitant to nuke it.

#145 willworkforpickles on 06.05.20 at 9:53 pm

#116 Ronaldo…not that it matters here (it doesn’t) – I posted a stock pick here 12 days ago that is now up 90%, it was over 100% or more than doubled early in the week. The other more than doubled in that time…because you asked.
You can find the stock pick I posted on this blog Sunday May 24th.

#146 Wilbur on 06.05.20 at 9:55 pm

It’s time Canada woke up, our Prime Minister shut down parliament with the help of the NDP as it was unsafe for him to leave his cottage, yet today, he leaves his cottage to bend a knee as soon as the camera’s see him during a protest. Wake up Canada, this is a man that gives away money like it is growing on tree’s cares more about his UN seat than anything to do with Canada. Its high time Canada was put first. Time to vote wisely and vote out this dictator Liberal party.

#147 Do we have all the facts on 06.05.20 at 10:03 pm

Before you get too excited about the report that 290,000 new jobs were created in May it should be noted that this figure was based on a survey that included thousands of workers who reported that they were employed even though did not actually work in May. It remains to be seen how many full time jobs might be lost or converted to part time positions when government wage subsidies end.

Over 230,000 of the new jobs “created” in May were in the Province of Quebec who decided to reopen their economy in late April. Many of the new jobs reported were actually workers filling positions that existed before the lockdown but were not included in a wage subsidy program.

On a closing note in spite of the “creation” of 290,000 new jobs the unemployment rate in May actually increased. The percentage of the Canadian labour force that is currently participating in the economy increased slightly to 61.4% but well below the rate of 65.9% in January 2020.

Tinkering with the size of the labour force by eliminating individuals who are unemployed but not actively seeking employment distorts reality. It might be time for a more honest assessment of unemployment within Canada.

#148 Stratovarious on 06.05.20 at 10:35 pm

One must concede that your “little erection” did indeed result in a glorious climax on the markets. And thanks to the CB buying, corporate bonds have also been frothy. But the fact remains that there is double-digit unemployment everywhere, and many service jobs are toast. Also, the riots in the US are at least as much about income inequality as they are about race, suggesting that escalating share prices are just fodder for those who prefer to throw bricks. Perhaps when helicopter money stops being dropped, reality will hit the markets, but so far, Wall Street has had its “V” shaped recovery. Now we will see if this was just a premature climax or if your friends on Bay Street can keep the party going.

#149 Deplorable Dude on 06.05.20 at 10:45 pm

White House Down..?

Are the left nutbars/swamp planning one last desperate attempt to take out Trump. To storm and burn down the White House tomorrow, under the pretence of ‘peaceful BLM protests’?

The Pentagon orders National Guard to disarm.

Someone forced Trump to change weekend plans and stay in DC this weekend.

DC Mayor Bowser demands national guard leave.

Antifa organizes million person march on the White House.

Odd set of coincidences, no?

Gonna be lit in DC tomorrow night!

#150 Trojan House on 06.05.20 at 10:51 pm

Would you conform or would you rebel?

https://getpocket.com/explore/item/would-you-stand-up-to-an-oppressive-regime-or-would-you-conform-here-s-the-science?utm_source=pocket-newtab

#151 DON on 06.05.20 at 10:56 pm

#2 Ballingsford on 06.05.20 at 2:00 pm

That’s incredible that 290,000 mostly full time jobs were created in May, when a 500,000 loss was anticipated. The counting started the second week of May, the ones employed after don’t count for the rest of the month.
Is there a breakdown on what types of jobs were filled? They can’t mostly all be construction jobs.
The breakdowns by province who started opening their economies earlier would be interesting to see also.
**************

That is interesting – construction didn’t really slow down on Vancouver Island. I have been watching two buildings going up during the lock down. Driving around last Friday most builders are working on residential job sites, new developments subdivisions etc. Two friends are having renovations done.

Dolce will track and translate those unemployment numbers for us.

How’s it going in Van Flop…construction wise?

#152 TurnerNation on 06.05.20 at 11:15 pm

Due to the new and totally scientific Covid re-opening protocols this weblog must hereby reduce its daily
word-count by 50%. And the comments section must be halved. That is, every other comment must be a Blank comment. To allow for spacing.

It is true. In order to transact commerce via the CMHC – to buy or sell property – you must have the Mark.
That is a credit score of a least 666. :-(
And so the dance begins…an economy made up of the credit haves an the have nots. Track that in your spreadsheets why don’t you.

#153 PastThePeak on 06.05.20 at 11:19 pm

#4 Thomas on 06.05.20 at 2:14 pm
Sold some CM.TO and bought some more GOLD today.

Rationale:
– Banks are toast with negative rates coming. Just look across the Atlantic.
– GOLD was oversold.
– T2 spent another 14 Billions he doesn’t have.
– CAD is very high compared to the USD.

PS: Garth, I cannot lick my bullion because it comes in small 1oz bars covered with plastic and paper packaging (I am not that rich as you think I am…).
++++++++++++++++++++++++++++++++++

I did same in terms of selling CM. Had CM in a non-reg portfolio, so figured better to sell at a relatively good point (compared to all time highs) and take my capital gains now, vs. next year (when inclusion rate likely higher). Re-deploy to better pastures.

#154 Drinking on 06.05.20 at 11:23 pm

I can understand why some who read today’s blog would find it harsh, but I loved it, nobody handed me anything, never sold, although a bit down, a heck of a lot better then it was a few months back. It is what it is, but I do still worry about what is coming this flu season, setting aside as much cash as I can afford right now for that just in case senerio.

#155 Ponzius Pilatus on 06.05.20 at 11:30 pm

#147 Do we have all the facts on 06.05.20 at 10:03 pm
Before you get too excited about the report that 290,000 new jobs were created in May it should be noted that this figure was based on a survey that included thousands of workers who reported that they were employed even though did not actually work in May. It remains to be seen how many full time jobs might be lost or converted to part time positions when government wage subsidies end.

Over 230,000 of the new jobs “created” in May were in the Province of Quebec who decided to reopen their economy in late April. Many of the new jobs reported were actually workers filling positions that existed before the lockdown but were not included in a wage subsidy program.

On a closing note in spite of the “creation” of 290,000 new jobs the unemployment rate in May actually increased. The percentage of the Canadian labour force that is currently participating in the economy increased slightly to 61.4% but well below the rate of 65.9% in January 2020.

Tinkering with the size of the labour force by eliminating individuals who are unemployed but not actively seeking employment distorts reality. It might be time for a more honest assessment of unemployment within Canada.
—————-
Do you think the American (or China’s) job stats are factual.
Tired of people who seem to hate their own country.
Nobody and no system is perfect.
Live with it.

#156 Karlhungus on 06.05.20 at 11:30 pm

#27 sunshowers

I don’t think risk means what you think it’s means

#157 Trumpada on 06.05.20 at 11:45 pm

Best thing about Canada?
We’re almost all within 200 miles of the United States of Trump!

#158 Hannah McTier on 06.06.20 at 12:10 am

DELETED

#159 belly rubs on 06.06.20 at 12:23 am

#4 Thomas on 06.05.20 at 2:14 pm
Garth, I cannot lick my bullion because it comes in small 1oz bars covered with plastic and paper packaging (I am not that rich as you think I am…).

I lick mine all the time. Got my “git outta Dodge shiny” in the back of my mouth. Just need pliers and a pawn shop and I’m good to go.

And Garth, don’t forget to factor in a year of corporate genuflecting.

#160 VicPaul on 06.06.20 at 12:30 am

#137 Direct Investing on 06.05.20 at 9:01 pm
#127 Sydneysider on 06.05.20 at 8:40 pm

If you invest with RBC, clicking on a day like today just brings up the error messages.
___________________________________________

I applied for an account online and got an error message. Then I applied in person and got nothing. They say it takes 24 hours to set up. More like 24 days so far and still counting.

What online broker would the blog dogs recommend?

*********

I started with RBC self-directed but, at ten bucks a trade…I switched to Questrade and I like it. I’m getting old though – when I cowboy down soon, the dough goes to Garth to manage. My Dad is there and the suspender-snapping, Allen Edmonds wearing, Porsche driving investment playas have treated him well.

Thanks Garth )

M56BC

#161 Robert Ash on 06.06.20 at 12:36 am

Got a belly laugh out of ” Some are staggering towards the light”… The Markets are Delusional and if the Stimulus ends or Fundamental analysis using GAAP returns, then reality and realism, will start to set in… Or there is no other place for Capital to Flow… The market excitement is likely a possibility that Equity Investors are comparing the Net Present value of current Fixed asset returns, to arrive at the courage, to purchase inflated stock prices. Or Day Traders, and Robo’s are Leading the Charge.

#162 NFN_NLN on 06.06.20 at 12:39 am

#7 Dolce Vita on 06.05.20 at 2:23 pm
1,229,500 missing from the Feb. Labour Force in May.

Mainstream Canada is not there yet Garth. I want it to be just as much as you but the reality is, no, not yet.

Have you stopped hyping COVID-19 and are now dooming about employment numbers?

I hope you put your money where your mouth is and pulled out of the market, or better shorted US indexes.

#163 Arto on 06.06.20 at 12:41 am

Time to harvest some profits. Buy the pandemic, sell the opening.

#164 Dr V on 06.06.20 at 1:12 am

16 Anthony

“Garth and the blog dogs here still haven’t addressed my point, what makes “investing” in markets propped up by government and central bank pogey more virtuous than taking CERB?”

Well let’s see. While my wife’s business was shut
down, she collected CERB. She met all the criteria. During that time, I invested some extra in the markets. The speed of this rally has me a bit puzzled, so I am carefully considering my next moves.

Government largesse and ZIRP benefit many, including
those who use debt wisely. My business lands lots of government work, work related to government work, and work related to government regulations. We also benefit from individuals, business and larger corporations who have access to cheap credit, or whose products are in greater demand due to cheap credit.

And government itself continues to grow, employ more, and pay what are probably the most generous pensions
available to the average working person.

So really, I’m just a pretty average capitalist, trying to take care of myself and family. I believe I would have done just fine with less largess and higher interest rates.

So Anthony, what is it that you do for you to receive no
benefit of the “pogey”?

#165 Investx on 06.06.20 at 1:21 am

“Thinking everybody with more than you is just “sitting at the computer clicking stock purchases” is puerile. Grow up.”

Amen, Garth. And thanks for teaching us a new term…puerile!

#166 Ronaldo on 06.06.20 at 1:39 am

#145 willworkforpickles on 06.05.20 at 9:53 pm
#116 Ronaldo…not that it matters here (it doesn’t) – I posted a stock pick here 12 days ago that is now up 90%, it was over 100% or more than doubled early in the week. The other more than doubled in that time…because you asked.
You can find the stock pick I posted on this blog Sunday May 24th
————————————————————–
Lol Pickles. I was just making a joke. I have a couple that doubled and trippled myself that I picked up when the market took the big tumble back in March. They were in the energy sector. XEG, BTE and CPG. A few others up over 50%. Once in a decade opportunity but you are right, it doesn’t matter here. These are apart from my main 60/40 portfolio. I call it my Casino Portfolio or my play money. One of the things that I have enjoyed doing in the 20 years being retired. Better than going to Vegas.

#167 Al on 06.06.20 at 1:51 am

“No government responsibility for its edict? You have much to learn. – Garth”

One time I showed up at security and it took an awful long time to get through. They fed me all this BS about having to comply with their procedures for my “safety” and everyone else’s on the plane. Anywho, I missed the flight and a business meeting which cost me a six figure amount and dozens of jobs stemming from that contract. I later complained to the responsible governmental department about the lost income due to their governmental edicts, that I should be compensated in light of their actions.

They told me I shouldn’t have arrived at the gate with such little time.

#168 Tim123 on 06.06.20 at 2:05 am

The market has run a long way in a short period of time so I have been taking some profits as the risk vs reward is not as good as it was in April. I still have money in the markets but have bought some cheap insurance using options plus i am keeping cash for the upcoming pullback in the market. I do not think it is gaming the system by investing in stocks and options. There is a saying that all wall street traders know “Don’t fight the Fed”. The Fed is pushing the market higher so traders know that the probability of higher markets is quite high probably 80% to 90% off the bottom in March. As of now the market is somewhat overvalued so some caution is warranted as part of managing a portfolio is risk management.

#169 Amok on 06.06.20 at 3:13 am

Ok
Struck a nerve it seems.
Well Garth. I thought you might give an actual intelligent answer rather than a defensive “I earned my money fair and square so there!!!” response. It’s easy to condescend from a keyboard, and many including yourself are capable of that. Fire with fire, as they say.
That’s fine – no harm done.
I did take CERB, thank you – 3 payments – I’m a sole-proprietor paramedical professional whose practice was put on ’emergency need only’ — CERB paid my rent, while my living expenses came from my own savings. Also – I’m debt free’ I live below my means — but thanks for the jab all the same. You know best.

Yes, I’m back at work now – thanks for asking — and incredibly grateful I have a profession to go back to.
There is an anecdote for y’all, seeing as anecdotes are seemingly the lifeblood of this comments section.

The financial advice on this blog is sound and helpful, that much is certain. ETF’s, balanced portfolio, over and over – broken record…
But that’s not what this blog is ALL about. It has much to do with conservative politics, fragile ego’s, septuagenarian know-it-all-ism, and let’s face it; waning glory. It’s an echo chamber for dying white privilege.
Tick tock…
Full disclosure I am a white man, like basically everyone who reads this blog (I don’t know it for a fact I just know it’s true). So let’s just call a spade a spade and stop defending a mirage. We all know capitalism is collapsing. We can’t have capitalism when there are no resources, clean water, or customers with money. I feel that’s why the comments here are increasingly angry and disturbed. Anger is the breached peak of the emotional iceberg, fear and resentment making up the lion’s share within the icy depths.
Full disclosure – I’m not a psychologist.

The subtitle of this blog is “The Troubled Future of Real Estate” Does that actually fit? Real estate has been climbing since this blog’s inception. Don’t all aspects of life eventually have a troubled future… if you wait long enough?
Tick tock… and then: ‘Voila! I told you so!’
Brilliant model.

I realize it’s easy to sit behind a computer screen and behave “puerile” — it’s the nature of online communication these days, and I regret that. Listening thoughtfully, with empathy is much more constructive.
Mea culpa.
I’m just a dumb poor pleb who doesn’t know any better.


For the people who were wondering why Stockwell Day was ‘compelled’ to leave his positions, and could’t be bothered to read to the end of the article, it wasn’t because he said he thought Canada wasn’t a racist country (It is. It was born of colonial destruction and genocide. These are facts.), it was because he equated this statement: “Should I have gone through school and been mocked because I had glasses and was called four-eyes and because the occupation of my parents… No, of course not” with the institutionalized and systemic racism that is very real in Canada. Day’s father was a politician! His comparison of his experience with that of someone, for example; who is First Nations, born on a Reserve whose parents were victims of the residential school system is not only absurd, but outlines that he absolutely Does. Not. Get. It.
People who don’t ‘get it’ even though the answer and evidence is screaming at them, have no place anymore. To lose power is frustrating and confusing, but acting incredulous when the reality is staring one in the face is to rob oneself of mental enlightenment and indeed the joy of being a human; learning, loving, experiencing, thinking, and growing… oh and amassing wealth that you can take with you into the afterlife ;)
Free speech is not being attacked! Day is not being prosecuted, but decidedly is not somebody worth listening to anymore — that’s how it works now — you are free to say whatever you like, and others are free to think you’re horrible. If people think you’re horrible, then you don’t get to be a talking head on CBC. I hear the police are hiring though.
But please don’t shed a tear for Stockwell Day. He’s a millionaire. He’s fine. I’m sure he has a comfy lake home and even a jet-ski.

There is fear with confronting one’s own ignorance. It requires a deep breath, an acceptance of the system we were all born into, and a great deal of humility. Foisting it upon people is not my place, and wagging my finger from behind my keyboard is not helping anything, I realize that and need to learn from yesterday.
Maybe a few of you will read this and it will begin to plant a seed of realization…. But again, this is a real estate blog right? I’ll keep my finger-wagging at bay.
Thanks again for the lesson, Garth.

#170 Viorelli on 06.06.20 at 4:09 am

Everyone keeps constantly reminding me of my white privilege. Let’s see: a privilege of coming to Canada with $2500 in my pocket of total savings, wife worked as a janitor in YVR and a part time cook at night, I worked at the Steveston cannery and part time care aid in the 80s in Langley. Oldest kid started first job at 13, bike repair shop as we never gave him allowances. Old cars fixed on my own, I can change oil and breaks, no restaurants, only borscht, it’s cheap and lasts all week, with rye bread. Still on the same diet at 63 and a newer Honda. We have done fairly well and support hundreds if not thousands in Canada with our tax dollars. White privilege! I support around 130 employees with payroll deductions alone, white privilege! I employ many people of all races, but when someone breaks my stories or attacks me physically why should I be reminded to stand down for my white privilege? I have also been a refugee and a target of hate in the past, when I lived in South Africa and in Israel. Once I was driving to a dead sea resort with kids in the car when another car try to sideswipe me and started shooting at my back seat where both of my little kids were sitting, luckily I had an uzi in hand and my wife threw a granade into their window ( she served in their army too and was trained in numerous weapons), we finished the 2 fuc…rs on site and escaped death by a miracle! White privilege! When cops arrived they issued a terror report and let us go to hospital for mental support, especially for kids. White privilege! Why can’t we just all get along and start to respect each other, its beyond my understanding. Life is so much more than hate and jealousy what is spreading in our societies today.

#171 El Chapo Goodman on 06.06.20 at 4:50 am

“Let’s try being honest. When you’re rich, white, sitting at the computer clicking stock purchases, scamming the system, and benefiting from governments propping up the stock market — you’re a hero. ”

Really? What if you came from less than nothing and ‘made it’ because you worked hard? I know a lot of ethnic non whites who had a lot more ‘privilege’ than I did growing up.

I’ll tell you what ‘white privilege’ meant to me growing up. I was denied access to ethnic only government hiring, ethnic only seats in technical schools. I suppose privilege for me was having to fight tooth and nail to get what others were given.

Our system is being looted by the lazy. Covid has exposed the liberal-socialist system as a failed state. Merkel just publicly announced that multi-multiculturalism has failed. If you don’t like it, take it up with her, she said it.

Same with Trudeau, what hypocrisy !! He comes out of his self imposed 70 day self isolation. Does this mean we’ll see our Parliament open tomorrow?

You guys want it both ways. Nobody wants to work anymore. I was less than ‘dirt poor’ and now make six figures a month. You think that little uptick is an ‘erection’? I’ll send you a dick pick if you really want to compare my huge 50% ++ two month ‘boner’ to yours.

Why aren’t you rich? Because you listen/follow guys like Trudeau. I’m not a wolf, but you’re definatley a sheep.

And you call guys like me ‘privileged’?

And I really hope no one let their kid go to one of Trudeau’s fake protests. From social isolation to mass crush. Whats that going to do to the Covid Spike. What an irresponsible move by Trudeau.

#172 Sail Away on 06.06.20 at 5:21 am

#137 Direct Investing on 06.05.20 at 9:01 pm
#127 Sydneysider on 06.05.20 at 8:40 pm

If you invest with RBC, clicking on a day like today just brings up the error messages.

—————-

I applied for an account online and got an error message. Then I applied in person and got nothing. They say it takes 24 hours to set up. More like 24 days so far and still counting.

What online broker would the blog dogs recommend?

—————-

No complaints with TD direct from my end.

#173 Steven Rowlandson on 06.06.20 at 6:40 am

A real recovery means every working man gets paid the price of a home over equal to or less than 6000 man hours per hour with full hours.
Until then it is a let’s pretend slave labor market.

How about working women? – Garth

#174 Sky on 06.06.20 at 6:49 am

Attrition # 83 :

“Why do I get the feeling that we blawg dawgs are missing the point of pretty much everything that’s going on these days…

Forget the markets, forget the virus. Focus on things that truly matter. This is about rights and power and control.

Social media has hastened the demise of free speech and put corporations in the position of private arbiters of right and wrong. That should be chilling to the bone…”

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

Fantastic post, Attrition. You raise so many great points.

Power and control. Absolutely. Fascism/Corporatism.

Snippets:

“With a fascist the problem is never how best to present the truth to the public but how best to use the news to deceive the public into giving the fascist and his group more money or more power.”

“Fascism should more appropriately be called corporatism because it is a merger of state and corporate power.”

“The businesses “going out of business” are, in fascist administrations, usually those of locally owned small and medium-sized companies.”

“…always and everywhere they can be identified by their appeal to prejudice and by the desire to play upon the fears and vanities of different groups in order to gain power. It is no coincidence that the growth of modern tyrants has in every case been heralded by the growth of prejudice.”

https://www.nakedcapitalism.com/2015/11/mussolini-style-corporatism-aka-fascism-on-the-rise-in-the-us.html

______________________________________________

North American neofascism is really picking up momentum right now. What better way to consolidate power and further an agenda, than to lock everyone up for a few months until they go stir crazy? Close all the nightclubs, bars, sporting events, the casinos.

That pent up energy had to go somewhere. All it took was the media amplification of George Floyd’s death to set off the whole damn explosion.

The SJWs have been socially engineered into thinking that they’re protesting against racism. They are not. In reality they’re caught in the maelstrom of a well funded and TOP DOWN organized power play which the people in charge will use to their own advantage. As always.

We are heading into a complete nightmare. No, I don’t think we’ll get dragged off to the death camps or anywhere like that. It will be somewhere much worse.

Our vapid corporate landscape, our increasingly violent and pornographic culture, the hollowed out education system, the lovers of bling and TVs and iPhone screens, and above all – the academic technocrats who pawn themselves off as our ruling intelligentsia – All of these things can lead us to only one place. The mental gulag.

These mental prisons spell the end of free thinking. The end of TRUTH. The end of ideas, creativity, and innovation. Many of our youth don’t recognize these gulags for what they are. They’re already inside them. Comfy and cozy and inviting the rest of us in. By force if need be. Resist!

#175 Do we have all the facts on 06.06.20 at 6:59 am

#155 Ponzy

Take it easy with the quantum leap from take a more detailed look at the statistics to why do you hate Canada.

In April 2020 Stats Canada reported that 2,418,000 Canadians were unemployed. In May 2020 Stats Canada
reported that 2,619,000 Canadians were now unemployed. In spite of a substantial increase in the number of unemployed the lead story was that 290,000 “new” jobs had been created and that economic recovery was underway.

On analysis there would appear to be close to 4,000,000 able bodied Canadians are currently without full time employment. If Canada is ever going to recover from the Covid 19 lockdown we will need comprehensive plans to define our place in the rapidly changing global economy.

I fear we have grown content with our dependency on the United States and am suggesting that we broaden our horizons as quickly as possible.

That isn’t hate my fellow blogger it is an expression of real concern.

East with the quantum

#176 maxx on 06.06.20 at 7:07 am

Let´s be honest: people with money, in fact most of them, are hell-bent on improving their lot. They are just about as motivated to get wealthy as they are to stay alive. It´s that simple. They have the desire, a plan and stick to it unrelentingly. They. Never. Ever. Change. Course.

Your personal balance sheet is a business. If the selling side of the real economy attempts to pry the maximum amount of cash from your wallet, well, that´s simply its business. It is the individual´s job to moderate that. Everything is monetized, commodified and run to generate profit. There is no real benevolence in the system. None. That belongs to individuals and we´re stuck with it. Therefore, we must save like hell to create a buffer. The much lauded f/u money. The bigger the pile, the better.

Those who wake up unprepared to (yet another) economic crisis without savings have absolutely zero right to attempt to bash those with money. Had they accumulated their own resources, we wouldn´t have to put up with their insufferable drivel.

Even if UBI becomes a reality, they´ll still moan the discrepancy.

What the wealthy were busy doing while the have-nots were pissing away their time was getting wealthy.

I´m more than happy to contribute to the tax pile to support our society´s well-being. What grates is that many of the whiners and complainers lack for nothing, live in a country where most can become well off but sit on their butts engaging the green-eyed monster.

#177 Captain Uppa on 06.06.20 at 7:51 am

#144 IHCTD9 on 06.05.20 at 9:32 pm
#119 Captain Uppa on 06.05.20 at 8:00 pm
Ditto.

At the time, I didn’t know how much my 20K’ish would go because everything was so unknown and degrading fast. So I took some money out of my portfolios just to make sure we felt comfortable.

On the other hand, I have unused LOCs with great rates, so yeah, bonehead move on my part.

But my wife approved, so that was a win
——-

I’m trying to convince Ms. IH to just invest the emergency fund. It’s been sitting around for over 2 decades and never gets used, been through 9/11, .com bust, GFC, and now CV-19. We also have a couple LOC’s and rates have been cheap for a long time, seems like a better idea to just borrow if needed (big if there too…) and put the 20k to work instead.

But, I think it’s a security blanket for her, she sure is hesitant to nuke it.

——————————————

Security blanket, exactly. And to be honest, I’d rather have a relaxed wife then some extra cash invested lol.

#178 TurnerNation on 06.06.20 at 8:25 am

#83 Attrition the saying goes that the Truth is no longer hidden, people are hiding from the truth.
They’ve turned every system against us.

Tribunals are closed no longer are landlords protected from squatters.
Courts are closed no longer may you prove your innocence.
Doctors would not see people without CV nor dispense preventative care.
Police were told to ticket the innocent $800 a pop.
Grade schools are to indoctrinate children into prison culture. Kept 6 feet apart in the exercise yard. Guard teachers watching. No wonder tattoo culture is sold hard.

Finally as the veil has dropped we see political party leaders, newspaper and CEOs opening calling for riots. Total set up.
Every man has his price. I wonder what is theirs.

Btw corporations are to lead the New System. They take your temperature and name and check list at the entrance door right? Private companies control your ability of buying food, association.
The government’s daily role is reduced to distractive antics and mind control. Kneeling is the latest stunt. Actually it’s a ritual but that is beyond blog scope. The new religion. Cover your face (mask).

The old system is being taken down. The new system? Read book 1984.

#179 Flop... on 06.06.20 at 8:35 am

#151 DON on 06.05.20 at 10:56 pm
How’s it going in Van Flop…construction wise?

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

Morning Donnie, it’s a little after 5 o’clock and a ripping thunderstorm is busting my eardrums out the window, so I’m gonna start typing.

I’ve reported on construction in Vancouver a few times already this year but I’ll give you a recap.

Work has been real solid this year.

You hear of the odd condo project getting cancelled, and who knows with lots of people off work if they decided to shelve plan for renovations, but at the moment it appears full steam ahead.

Late last year I switched from doing new construction to renovations and even with all the pandemic hoopla, I could have my best year in ages, if my body holds out.

I was scheduled to go away for spring break and that got scrapped at the last minute, had to put my floaties back away and worked.

A few trades went missing for a month or so, so I worked Easter Friday and Easter Monday, days I would normally have off, just to push the project along, working in normally busier parts of the house.

What the future holds, who knows.

Some of the major projects in Vancouver appear past the point of no return, so I don’t see things in general slowing down anytime soon.

The speculation has dampened a lot but there is still massive demand for housing at this stage.

Prices are slowly drifting downwards, a decent product at a decent price is gone fairly quickly.

Some speculators in my neighborhood, bought knockdowns and tried to sit on them for a couple of years and flip for a profit, as is.

What they ended up doing was building a new house instead of taking a 200/300k loss, so while it’s more risk for them by doubling down, it’s also more work for construction workers in the city.

Thunderstorm has finished, time to try and have a snooze…
M45BC

#180 Wrk.dover on 06.06.20 at 8:39 am

#140 Captain Uppa on 06.05.20 at 9:10 pm
#123 Wrk.dover on 06.05.20 at 8:34 pm
#119 Captain Uppa on 06.05.20 at 8:00 pm

On the other hand, I have unused LOCs with great rates

—————————————-

Experimenting with crack or unsafe sex with a stranger would be safer than dipping an HELOC in times like this

——————-

Who said anything about HELOC? I was referring to simple personal lines of credit.

———————————

I’m wrong anyhow. The future has people being paid to borrow. Because no one will oppose to that.

Everyone here will be able to borrow funds with which to buy stocks that go up in value while also getting interest payments to purchase yet more shares with.

Again, this is because no one is opposed to the scheme.

Ergo it will soon happen.

#181 IHCTD9 on 06.06.20 at 8:39 am

Let’s try being honest. When you’re rich, white, sitting at the computer clicking stock purchases, scamming the system, and benefitting from governments propping up the stock market — you’re a hero. When you’re a worker who has lost their job and relying on EI — you’re a bum, a loser and a problem. WHY?
—-

Heh, I’m both of these. I’ve been investing money into the markets since my mid 20’s, and currently also a laid off worker “relying“ on EI (CERB).

I also pay diddly net income tax thanks to receiving 10’s of thousands in free cash from Trudeau every single year.

That must really burn your ass eh?

#182 Wrk.dover on 06.06.20 at 8:52 am

Interest AND the dividends at the same time!

#183 Phylis on 06.06.20 at 8:56 am

#173 Sky on 06.06.20 at 6:49 am

Reminds me of the story Mike Mandel would tell at his performance. He discovered he had an ability when walking to school with his two best buddies. By individually conversing with each person, he was able to have them beating the piss out of each other without them knowing why they were fighting in the first place.

Power of words.

With that I’ll suggest a number of people voluntarily wear their own chains of ignorance.

#184 willworkforpickles on 06.06.20 at 9:08 am

#166 Ronaldo…actually that stock pick went up 340% by early last week(tilt) from when I purchased 150,000 shares at 0.18 cad in March before pulling back a bit. What I meant is it did a double since I posted it here 12 days ago. The stock market isn’t for everybody. I watched its habits for some time, earnings reports each qtr for a year before buying in and nailed it with the March crash. That one still has a big climb to make yet with 4th qtr – annual and 1st qtr earnings posted, due out on the 11th and 22nd of June. $50 million US expected earnings each qtr with little debt…grossly undervalued to boot.

#185 Dharma Bum on 06.06.20 at 9:24 am

#12 Cottagers STAY THE HELL AWAY!

Don’t compromise our health care resources by coming up for a meaningless visit.
——————————————————————–

Didn’t you get the memo?

Health care resources in Ontario were never compromised. Lots of excess capacity. Nurses sitting around. hardly anyone was getting sick.

The pandemic was a scam.

The government loved their abusive power trip while it lasted, though.

Buh-bye, scamdemic.

#186 Headhunter on 06.06.20 at 9:27 am

one rule for me and another for thee
“too big to fail” Its too late to close the barn doors as the horses are gone!

As I posted recently.. the chasm between main st and wall st is just too wide now and the disconnect is too big. Woke too many up.

There is no free market. We all know it, just dont want to admit it. Portfolios were made whole by gov’t pogey. Wail all you want but its true

#187 Sky on 06.06.20 at 9:56 am

Phylis # 183

Jeopardy :

I’ll take “Obvious Incomprehension & Doublespeak” for a $1000, please Alex.

#188 Dharma Bum on 06.06.20 at 10:17 am

#176 maxx

Therefore, we must save like hell to create a buffer. The much lauded f/u money. The bigger the pile, the better.
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F/U money is the key to motivational investing.

Imagining having f/u money when I was just starting out on my saving and investing path gave me the fortitude to stick with the plan.

The fun of fantasizing about my exit strategy was a salve to the persistent arduousness of decades long wage slave drudgery in the rat race.

“Just-keep-thinking-about-the-f-u-money!”, I thought.

When the time approached, I had my GO BAG all set.

https://www.youtube.com/watch?v=VoOBaRqT3As

F/U money = FREEDOM.

#189 Sky on 06.06.20 at 11:39 am

Follow-up clarification for Phylis # 183:

“Power of words”

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

I disagree. Once you’re trapped inside the mental gulag, words have zero power. Nada. Zilch. UNLESS those words are exactly the ones you want to hear. The words you’ve been programmed to believe.

That was the point of my post. And thank you for your own post. It illustrated this point beautifully.

#190 Ronaldo on 06.06.20 at 12:08 pm

#184 willworkforpickles on 06.06.20 at 9:08 am
#166 Ronaldo…actually that stock pick went up 340% by early last week(tilt) from when I purchased 150,000 shares at 0.18 cad in March before pulling back a bit. What I meant is it did a double since I posted it here 12 days ago. The stock market isn’t for everybody. I watched its habits for some time, earnings reports each qtr for a year before buying in and nailed it with the March crash. That one still has a big climb to make yet with 4th qtr – annual and 1st qtr earnings posted, due out on the 11th and 22nd of June. $50 million US expected earnings each qtr with little debt…grossly undervalued to boot.
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Good for you. Don’t forget to take some off the table. I have found selling is the toughest part.

#191 JUST LQQKING on 06.06.20 at 12:32 pm

#152 turner nation…That is, every other comment must be a Blank comment. To allow for “SOCIAL” spacing.
#178…total drivel
perhaps you should take your advice and post blank opinions…because the ones you are putting out there don’t make a lot of sense…just sayin’

#192 Genesis II on 06.06.20 at 1:37 pm

#32 Mr. Market on 06.05.20 at 3:49 pm

Whoever sold stocks in the last few weeks and months are the biggest losers. Dow in on track to hit 30K in a few weeks.

Dow is at 27k today and was at 18k a few weeks back. I predicted the correction and rebound accurately. My next prediction. Dow will hit 30k by September and 35k end of this year.
***********

You should have asked Mrs. Market before posting this prediction.

I’m bettin on Dow at 20k rather than 30k by end of 2020. We shall see…

#193 maxx on 06.06.20 at 4:44 pm

@ #188 Dharma Bum

Amen to that. Well done and bravo!

#194 Steven Rowlandson on 06.06.20 at 6:27 pm

Working for money women and combining incomes is part of the problem Garth. A woman’s place is in the kitchen and the bed room and not always in that order!
Beverly Jenkins taught me that one and she was a working woman. Political and economic power is for men only. Don’t mess with the natural and divine order of things.

#195 Truth Be Told on 06.07.20 at 12:16 am

“We’re currently in the worst global pandemic since 1918… ”

More fake news… Unless you feel that AIDS doesn’t count or you don’t care. But the families of the 35 million that have died probably do. It still kills 2 * as many as Covid each year.

Not to mention the 1968 pandemic that killed as many as 10 times as many people, but at best 2.5 times as many.