Suck & blow

One problem with running a free blog is that anyone can come in, use the washroom, make a mess, rifle through the fridge, write on the wall and leave, smirking. So far there have been 686,200 comments published here. A whack more were deleted – too combative, disgusting, shanky, horny or dodgy to post.

Free speech is important. Abuse is too frequent. But these days, more than ever, we need debate. The world’s highly abnormal. More disruption and change on the way. There’s no black-and-white solution to anything.

Here’s a recent controversial topic: if massive government and CB stimulus are causing danger by inflating real estate, why isn’t a puffed-up stock market just as bad?

Answer: people buy houses with 10x and 20x leverage, usually for emotional reasons, often when they can’t really afford it, and despite the fact renting is almost universally cheaper. Today we owe over a trillion in mortgage debt which is guaranteed to cost more to carry in the years ahead. People willfully ignore the inverse relationship between rates and real estate prices. So when the cost of money starts to restore, mortgage debt grows more expensive, houses lose some value and personal finances wither.

That’s the risk. The naysayers counter by stating rates will never rise again in their lifetimes. But they will. No question of that, unless the economy remains in recession for decades – in which case, real estate will be a death trap. This is the mistake Mr. Socks made on TV Wednesday night, saying Canada can add excessively to its deficit/debt because of low rates. But when they double – from 2% to 4% (it’s coming with economic recovery) – it will add $20 billion a year to the cost of carrying $1,000,000,000,000 in existing debt. That’s twenty billion less for health care transfers, child care, seniors or renovating 24 Sussex.

Finally, lots of residential real estate transactions are non-productive. Aside from realtors, lender dudes, lawyers and movers, nobody gains. No new jobs are created. No products produced for export or domestic sale. No factories built, stores opened or offices launched. It’s hard to understand how a nation of people continuously selling each other houses and condos at ever-rising prices with larger whacks of debt expect a higher standard of living.

All that debt, by the way, is expensive to maintain – even at these rates. It sucks off disposable income that might otherwise buy cars, iPhones, clothes, vacations and stuff which actually creates products and jobs. Plus, look what Covid did. Almost a million families stopped making mortgage payments – a quarter of all the indebted households in the nation – because they couldn’t carry that $180 billion in borrowings. Now they are madly adding to them.

Is this not a warning we have taken the real estate, the one-asset strategy, too far?

What about financial assets?

Yup, also benefitting from government fiscal stimulus and central bank monetary diddling. Low rates have shoved down bond yields (along with bank savings and GICs) so more money flows into growth assets like equities. Cheap rates help corporations by lowering their borrowing costs. Govy handouts such as CERB keep people buying food, kibble and Internet connectivity, which helps Loblaws, Shaw, Purina, Sobeys, Rogers and Bell. There have been small business loans (partially forgivable) and payroll subsidies, as well as sectoral bailouts (more coming for the airlines).

As a result, people with financial portfolios have flown through the dogawful 2020 largely intact. Those 15% gains in 2019 have been retained. Now investors look forward to a recovery and post-election euphoria in 2021.

Meanwhile real estate buyers in 2020 have paid more for a house than ever before in history, taking on greater debt when the jobless rate is above 10% – the highest in the OECD – and the country is in recession with four million people worried about CERB cheques ending next Thursday (they won’t, of course).

In short, pretty much all of the assets in a financial portfolio end up in the economy, productively feeding corporations, employers and jobs or financing government debt. Most critically, people with RRSPs, TFSAs, RESPs, non-registered accounts and RRIFs do not have government insurance backing their portfolios and did not use leverage to buy them. They have assets which are not layered on debt. So when Covid hit, there were no deferrals. Besides, people always require income, especially in retirement. They don’t need houses. You can rent nice accommodation when you’re seventy. You cannot rent cash flow.

Apples, oranges. Bananas and Buicks. Simple comparisons are meaningless. Stop trying to make them. There’s no competition between real estate and financials. You should probably have both.

Despite the above, nothing will change.

A survey out today from BMO found 40% of first-time homebuyers think this is a swell time to make a house purchase – with record-high prices, greedy sellers, low inventory, steep unemployment, a deep recession and a global pandemic. Thanks to the sick economy, the bank says, many of the kids have had to dig into their savings and will require larger mortgages. “Even with a global pandemic as our backdrop, we’re encouraged to see Canadians maintaining their optimism on our housing market,” says the head of personal lending. Smiling.

But it’s not just optimism. It’s delusion.

Now get out of my bathroom.

 

 

 

192 comments ↓

#1 Axehead on 09.25.20 at 12:17 pm

Why do people need to write essays and long thesis compositions on your bathroom wall, Garth? Maybe you could limit entry, like Twitter?

#2 blogshark on 09.25.20 at 12:21 pm

Sorry to say it Garth, I think you have fallen into the generation gap. There is a fundamental difference in mentality between yourself, and those who have been born since roughly 1985. Your views of low debt, personal responsibility, and fiscal conservatism are irreconcilable to the modern mind.

I’m in the same boat, it’s not what the current generations want. And they will probably come to regret it, but it is their mistake to make. I will be long gone before the piper will be paid, you probably will too.

Onward to Trudeau’s 300 seat parliamentary caucus.

#3 TurnerNation on 09.25.20 at 12:24 pm

September is Harvest Season. They are coming for our assets. Across the pond 100 billion pounds went poof.
You just know favoured friends of the Party will get this money as handouts – their companies.

Say how many new hospitals they build over there?
We are living the greatest transfer of assets since 2008.
The Crown Bankers using the Crown Virus to take back the Crown Land as I see it.

As per today’s blog topic more and more likely it appears the goal is bankrupting our countries.

https://www.newscientist.com/article/2237475-covid-19-news-test-and-trace-app-goes-live-across-england-and-wales/#ixzz6Z4V3Zc9G

Public health specialists have raised concerns about the feasibility of government plans announced yesterday to spend £100 billion on expanding testing to 10 million tests per day by early 2021. Chaand Nagpaul, council chairman of the British Medical Association told the BBC it is unclear how these tests will work, given the “huge problems” with lab capacity. Sarah-Jane Marsh, director for testing at NHS Test and Trace apologised for the problems with the testing scheme earlier this week. Even if testing can be expanded, concerns remain about accuracy and contact tracing capacity. Transport secretary Grant Shapps told BBC Breakfast this morning that the technology to carry out the plan doesn’t currently exist.

#4 Alex on 09.25.20 at 12:25 pm

> That’s twenty billion less for health care transfers, child care, seniors or renovating 24 Sussex.

The federal government (and all sovereign currency issuers) are not – can not – be fiscally constrained. They can always purchase anything and everything that’s denominated in their currency. In a way you could say that the federal government neither has nor does not have money.

If it wants to fund health care, child care, or seniors then it can, no matter what the interest rates are. We can discuss the impact of this spending on inflation, but interest rates are no constraint at all.

#5 Leftover on 09.25.20 at 12:30 pm

We need debate. Okay, here’s one:

How about we eliminate capital gains taxes altogether (financial assets, second homes, beanie babies, everything, and don’t even think about principal residences).

However, we treat stock grants and options as regular income. They smell, even to the people getting them.

Probably the numbers don’t add up, but it would make things simple and we could pretend we all live in New Zealand.

#6 Borden Renter on 09.25.20 at 12:34 pm

I feel like I needed to read something like this today, what with prices (and policies) everywhere going insane.

Thanks Garth.

#7 Wrk.dover on 09.25.20 at 12:34 pm

Yup!

#8 Sunnyways on 09.25.20 at 12:36 pm

I don’t believe boomers understand how passionate (obsessed) millennials and younger generations are about housing. It’s in their loins.
Just look at the TV. Not only is their literally hundreds of shows about house flipping, home buying, renovation and landscaping and interior design, but there are MULTIPLE NETWORKS dedicated solely to this. Also, they are some of the most popular networks and some of the most popular shows on television.
The stars of these shows are elevated to celebrity status and become household names. They tour the country in between filming to give paid talks about how to get involved in the greater fool Ponzi scheme.
You should hear my wife and her friends talk when they get together. Homes is all they talk about. Squeak squeak new kitchen, squeak squeak vaulted ceilings. We have been in our home for 16 years and slowly renovated every square inch, all ourselves. I am tired and just want to live here. Now she is starting to talk about her desire to renovate our renovations.

Legend has it that up to 15 percent of our economy is now reliant on residential real estate. That seems impossible to me. Feels like it’s closer to 50 percent. 9 of 10 people I know are directly or indirectly tied to real estate. Plumbers, electricians, carpenters, agents, HVAC techs, mortgage brokers, house inspectors, I know them all. The only people funding bus stop benches are real estate agents.

We systematically murdered wealth producing industries over the last 25 years.
Mining, forestry, manufacturing and now oil and gas. We had to put people to work somewhere. But building homes for each other and then selling homes to each other and then repairing and modifying each other’s homes doesn’t actually create physical items of wealth that people from around the world want to buy from you.

Financialisation isn’t going to make up the difference although we certainly have tried. But again no actual tangible wealth is created by banks.

Add to that the government doing all it can to allow people to leverage to the moon and it’s no wonder house prices are where they are.

We crossed the rubicon a long time ago on this. We have held up housing as the key to our future.

If the housing market ever fails, so does Canada.

#9 TurnerNation on 09.25.20 at 12:36 pm

From the Predictive Programming Dept: I believe it was The Economist mag which used the term “The Masked Economy”.
That’s a bit of a double entendre – what’s being Masked is that we are bankrupt!!! Keeping buying Iphones and we will not notice.

From their April cover also predictive, look they’re are not hiding it even, we are being Led on a leash as an animal – that’s how our global rulers view us:

https://www.economist.com/sites/default/files/print-covers/20200328_cna1280_0.jpg

(By the way a little trick used to make publications seem high-brow, they throw a The in the title.)
The Economist
The Atlantic
The New Statesman.

#BlytheBarrington

#10 vancouver help on 09.25.20 at 12:37 pm

Why would things change?
I completely agree and think that we are doomed but when the opposite of what should happen seems to be happing one must say well is this the new normal? As long as housing prices keep going up nothing will change.
I do find it comical that no-one seems to blaming the foreign buyers now.
Try talking with anyone who does not come on here they are totally convinced that housing will go up forever and with what’s happening now with prices going up they won’t listen.

#11 WTF on 09.25.20 at 12:38 pm

#196 Yesterday “Poilievre is just a career whiner.”

Respectfully Chris.

He is the finance critic. That’s his position on the opposition bench. It is not his responsibility to provide alternatives.

It is however the Governments responsibility to spend tax payers remittances in a responsible manner. They Aren’t, ergo criticism.

PM Breathless and his minions own this debacle. All of it….

#12 Wrk.dover on 09.25.20 at 12:40 pm

it will add $20 billion a year to the cost of carrying $1,000,000,000 in existing debt.

——————————————–

Three more zeroes please.

#13 mattbg on 09.25.20 at 12:40 pm

One thing I could not believe about Trudeau’s speech is how he can talk about the affordability of borrowing lots of money today because interest rates are low today, and then in the same speech include a mention of fiscal responsibility.

With much of this spending being done simply to keep the lights on, it’s the equivalent of saying that it makes sense to buy groceries on long-term credit because interest rates are so low at the moment.

He is a salesman.

#14 Quintilian on 09.25.20 at 12:40 pm

A smidgen of common sense, and a cheap calculator would confirm that this modern day Tulipmania will not end well.

But the RE cartel knows that neither common sense or calculators are used in the process of buying a house, so they will hype and pump till the very end.

#15 su su on 09.25.20 at 12:43 pm

Hi Garth, I love your blog and have been following you for years. You are a logical guy and talk common sense. I too am logical but need more patience. This waiting game is tough.
My partner and I are in our late 60’s. We have been together for 3 years. We know we have a good thing. So, opposed to renting for another 3 years, we would love to buy a small house, in a small town, settle down into retirement and hopefully do some travelling…one day. I have been watching the house prices skyrocket. I know the pendulum will swing back to reality but for all of us renters who would like something more permanent, I have to remember Patience, Patience, Patience. Your blog helps to keep me grounded. Thanks

#16 SCD on 09.25.20 at 12:43 pm

I think a well thought out home purchase at this time is not the worst move, especially if you are not over reaching and you are also address saving for retirement. Not everything has to be so extreme. Hubby and I bought years ago and have stayed in the same ordinary home very happily. For us it has been a really good move.

#17 Sara on 09.25.20 at 12:45 pm

“A survey out today from BMO found 40% of first-time homebuyers think this is a swell time to make a house purchase”

So the other 60% of first-time buyers thinks it’s not a good time to make a house purchase but are doing it anyway? Spousal Abuse?

#18 Sara on 09.25.20 at 12:51 pm

#16 SCD “Hubby and I bought years ago and have stayed in the same ordinary home very happily. For us it has been a really good move.”

That was then. For youngish, first-time home buyers, it is hard to imagine that taking out historically huge mortgages will similarly turn out to be a really good move.

#19 Millennial 1%er on 09.25.20 at 12:53 pm

I mean what am I supposed to do? Not buy a house? Raise children in a 1 bedroom apartment?

So rent a two-bedder. Or a house. Cheaper than buying it. If you can’t afford property without taking on huge debt and throwing all your liquid wealth at it, then don’t. Your highest obligation, once you have kids, is to ensure their financial security. Real estate has nothing to do with that. Stop being whiny and selfish. – Garth

#20 Ponzius Pilatus on 09.25.20 at 12:58 pm

Picture:
The white dog is Turner Nation.

#21 Hanna DiGannis on 09.25.20 at 1:02 pm

My personal situation and immediate family and non immediate family situation is we are not a drain and burden to Canada. Actually, we are a supporter through taxes and our businesses and employment.

All of our current family adult members, here in Canada, 16 in total all have savings, investments, RRSP’s, TFSA’s one or more properties included primary residence of at least $200,000 each and little to no debt $0 for some to maximum $250,000 for a few.

We only have 2 family members that are working for a government agency or government job, career, position etc. Personally, I think if government employment reaches more than 1 in 7 or 1 in 6 workers, 15% to 17% of an economy and society that is when the problems start and grow year after year.

There is too much socialism and economic, financial and other forms of entitlement mentality and not enough people willing and proud of supporting their own families and own country. They are more and more dependent on government programs, government benefits which are less and less being contributed by government workers and their own paychecks etc.

There are many ways for the government and businesses and other parts of Canadian society that could boost and help citizens of Canada be stronger, prosperous and more independent financially and other ways but the Liberals, NDP, Green Party and any other more left leaning, socialist parties like minded are not here to help Canada, grow Canada, empower Canada but to diminish, devalue and make the demise of Canada as a great economic, resourceful, more independent country.

Canadians are fooling themselves if they think things will get better with such backward, failed many times policies that are just destructive in nature.

#22 Sara on 09.25.20 at 1:12 pm

#20 Ponzius Pilatus on 09.25.20 at 12:58 pm
Picture:
The white dog is Turner Nation.
————————————-
Reminds me more of Sail Away.

#23 Riolosi on 09.25.20 at 1:22 pm

Interest rates aren’t going up anytime soon. If they were to raise rates, it would crash the housing market and destroy everyone who is in debt. This could still happen even without a rate hike, but a rate hike would exacerbate this.

Instead, they will keep rates near zero for the foreseeable future. Basically doing what Japan has been doing for decades.

The only way rates would go up by any significant amount is if the whole debt bubble popped and we basically had a systemic collapse of the current financial system. Or if we had essentially a hyperinflation. Short of those things happening, rates aren’t going up.

People have been saying for years and years that rates are going up and lock in for 5 years and they’ve been wrong… and they will continue being wrong.

People buying overpriced real estate in the GTA and other bubble areas and taking on too much debt will be hurt. But people buying affordable real estate with these cheap rates will be just fine.

#24 baloney Sandwitch on 09.25.20 at 1:25 pm

Nice post, Garth. Good point about houses and leverage. Its a potentially bad situation.
Couple of quibbles, though. 1) Debt – most companies have debt, so you can’t say stocks are not leveraged assets. Banks of course are leverage around 10x, others mostly less.
2) Buying and selling of stocks & etf’s. There is no productivity. Its basically A selling to B etc. New wealth only comes in via an IPO.

#25 Doug in London on 09.25.20 at 1:30 pm

The advantage of the puffed up stock market is if you are smart you own a bunch of stocks, or better ETFs, so you have some diversity. Also, if you run into a cash crunch you can sell off some of your portfolio, but not all. Of course you would sell off those that you have a gain, or at least less loss. By contrast with a house you have all your eggs in one basket and can’t sell off just part of it like you can with a stock portfolio.

#26 Bytor the Snow Dog on 09.25.20 at 1:31 pm

Hey!

Wait….

There’s a fridge?

#27 The West on 09.25.20 at 1:33 pm

I will keep the graffiti short and sweet, good sir.

As a couple of us on the oppressed western side of Canada have been pointing out on these boards – there is real resentment on this side of Manitoba. And this is no longer just the rabble talking in side remarks.

From Calgary’s (Alberta’s capital of Alberta):
https://calgary.ctvnews.ca/fantasy-plan-for-a-mythical-country-premier-kenney-slams-federal-throne-speech-1.5118346

From Toronto (Ontario’s capital of Canada):
https://www.cbc.ca/news/canada/edmonton/opinion-kenney-throne-reaction-1.5738182

As we keep saying under PET’s aristocratic son: Ignore us at your own peril European Canada, we don’t want your socialism.

Petulant. – Garth

#28 Guelph Guru on 09.25.20 at 1:34 pm

Advantages of real estate investment:
Leverage: Banks are happy to lend you for your house. You get to invest 5 to 20 times your capital. Try getting a Business loan.
Simplicity: You do not have to understand the complexity of how the economy works. Not to worry about capital, productivity, GDP, sectors, small caps, prefs, Convertibles, Corp debt, govt debt.
Works: For the last 10+ years, has worked for everyone.
Massive tax free cap gains: All roses and ponies till the price rises every year.

Disadvantages:
Leverage: This works both ways.
Useless capital allocation: Does not produce any goods or services. Does not in any way help Canada to prosper. Only increases liability.

Due to the massive rally, the advantages are easy to understand and relate to.
To grasp the disadvantages you need a higher level of intelligence.

All leveraged unproductive allocations eventually correct. When? Hopefully it’s coming this Halloween.

#29 IHCTD9 on 09.25.20 at 1:36 pm

I just freaking love Kijiji. Just bought a new (to me) mower for 6500.00. New one is 11 grand. Can’t hardly tell it’s used, 200 hrs 6 years old, “old man unit” (slang for religiously maintained, cleaner than new, oil changes every week etc…).

Tax free, for now. Some day, Trudeau will likely try and tax used equipment – it’s getting more and more popular to spend big bucks on some sweet commercial grade residential maintenance equipment. 10K for a zero turn is pretty standard, no one balks at 5 figure mowers anymore.

10+ pages of them for sale on Kijiji in my area at any one time. Lots of $$ to be usurped.

#30 FreeBird on 09.25.20 at 1:44 pm

Interesting theory: is Canada’s economy now a Gordian knot. Does the PM think he’s Alexander? Have other countries done the same?

#31 Sail Away on 09.25.20 at 1:45 pm

#22 Sara on 09.25.20 at 1:12 pm
#20 Ponzius Pilatus on 09.25.20 at 12:58 pm

Picture:
The white dog is Turner Nation.

————-

Reminds me more of Sail Away.

————-

Thank you! That is one handsome stud-muffin.

#32 Dogman01 on 09.25.20 at 1:50 pm

Have we reached a point now that any good idea will attract loads of capital just based on its potential. Just look at the Cannabis orgy in Canada. Then there is Tesla.

Capital is flowing to a decent idea to the point where it becomes harmful and creates an undisciplined industry based more on the hype then the original good idea.

There is so much capital sloshing around.

I think our society is getting too top heavy. We need a dose of wage inflation spurring bottom up mass demand and then that capital can be put to productive use satisfying that.

#33 Burnaby Boy on 09.25.20 at 2:03 pm

My neighbor who is a Teachers Assistant just drove home for after nine days back at work and with all the issues the schools have the teachers took a professional development day. With a provincial deficit of 13B, thousands in arrears with the mortgage or rent I found myself laughing hysterically. Glad I’m getting old and the Alzheimers is kicking in.

#34 mj on 09.25.20 at 2:10 pm

before the bank of Canada slashed the rates. I think the government should have changed the amortization to 20 years max. It would have leveled off home prices, and people would pay off the home sooner

#35 SoggyShorts on 09.25.20 at 2:13 pm

#15 su su on 09.25.20 at 12:43 pm
Hi Garth, I love your blog and have been following you for years. You are a logical guy and talk common sense. I too am logical but need more patience. This waiting game is tough.
**********************
It can take a bit of work, but it’s entirely possible to find a “forever” rental where you’re looking.
There are people who own properties and just want reliable tenants who can supplement their pensions.

Even in cities you can find this; I know two couples who have rented the same homes for 11 and 17 years. The one who’s rented for 17 years has no idea what his landlord even looks like.

#36 Rainman on 09.25.20 at 2:17 pm

With both RE and the stock market, if you can ride it out for 10 years you will be smiling. The trouble is having to sell either when you don’t want to. I suppose we have been lucky and it’s working out fine.

#37 HowDeepThe Pain? on 09.25.20 at 2:18 pm

It’s ridiculous that all the government programs are not being tapered, why would anyone bother to get their financial house in order?

At the very least withhold 20% as a source deduction.

It’s truly disgusting, that the Liberals feel government spending does not weigh on the backs of the residents.
It’s invisible now, but it won’t be later.

#38 Overheardyou on 09.25.20 at 2:19 pm

Is there a chance that Canadian Millennials, never having any real hardship or economic fallout through their adult lives don’t understand the relationship debt plays and the dangers?

Perhaps our education systems really needs to add a personal finance 101 course mandatory or we could just let them learn the hard way.

#39 the Jaguar on 09.25.20 at 2:22 pm

“Free speech is important. Abuse is too frequent”. I agree with that statement. It’s becoming too frequent on the blog.
Here is an example from yesterday:
#135 Gravy Train on 09.24.20 at 8:36 pm posts this comment back to a previous poster, (#35 kc on 09.24.20 at 1:16 pm) –‘ Get it now, dumbass?’.

Pretty disrespectful and shows a real lack of intelligence and comportment. It’s fine to disagree with another poster’s comments and provide a dignified rebuttal, but why the personal attack? Does internet anonymity permit name calling? Sad.

As for the continued plunge into dangerous real estate waters, especially by younger folks, I put it down to a lack of experience with troubled times. While there have been a few dips in values since the mid 1990’s, the steep declines of 1989 ( Toronto) and early 1990’s ( Vancouver), aren’t just a distant memory. The young have no memory of them at all. It’s just been good times for 25+ years.

The house square footage keeps getting bigger, the SUV’s larger, a flatscreen in every room of the house including the bedroom (ugh), and bad things only happen to other people. Funny how quiet introspection, analysis of one’s needs and planning for uncertainty in a changing world can get ‘run over’ by all that shiny stuff.
Sunny ways until the music stops. It’s kind of like low world oil demand. Some people just can’t see the implications and its connection to standard of living.

#40 FreeBird on 09.25.20 at 2:24 pm

#19 Millennial 1%er on 09.25.20 at 12:53 pm
I mean what am I supposed to do? Not buy a house? Raise children in a 1 bedroom apartment?
——————-
Others here can confirm families do this every day all over the world and are just fine.

#41 not 1st on 09.25.20 at 2:28 pm

Hmm, its too bad Canada didnt have an abundant supply of something the world needs that we could sell to cover our debts and spending.

#42 OK, Doomer on 09.25.20 at 2:31 pm

“…it will add $20 billion a year to the cost of carrying $1,000,000,000,000 in existing debt. That’s twenty billion less for health care transfers, child care, seniors or renovating 24 Sussex.” – GT
++++++++++++++++++++++++++++

That’s 20 billion a year. Every stinking year.

Debt is forever.

#43 OK, Doomer on 09.25.20 at 2:43 pm

#29 IHCTD9 on 09.25.20 at 1:36 pm
I just freaking love Kijiji. Just bought a new (to me) mower for 6500.00. New one is 11 grand. Can’t hardly tell it’s used, 200 hrs 6 years old, “old man unit” (slang for religiously maintained, cleaner than new, oil changes every week etc…).
+++++++++++++++++++++++

I’m with you. On Kijiji I picked up a used BMW motorcycle. Superbly maintained. At coffee stops I get lots of compliments and comments that it looks brand new.

1/10th the price of a new one and more than fast enough to lose my license in less than 4 seconds.

I had to do a bit of minor tune-up wrenching on it, but I spent my youth hot-rodding cars, not playing video games. This puts these types of deals out of reach for the Mills. No mechanical skills in these kids.

Same with my houses. I can’t play Fortnite but I can frame, re-wire and re-plumb a house. Again, no skills in the Mills, so they have to pay full retail.

More for me. Such a deal

#44 not 1st on 09.25.20 at 2:46 pm

Well Garth, not sure how the west can be described as petulant. There wasnt a single item for AB and Sk in the throne speech except our energy industry needs to shut down. Imagine how that feels.

What would you feel like if Justin shut down your company on a whim? I think pleasant debate would be the last thing on your mind. Perspective please.

In the meantime, apparently we have enough money to fund $440M worth of vaccines for people in other countries, just announced.

#45 KLNR on 09.25.20 at 2:48 pm

@#29 IHCTD9 on 09.25.20 at 1:36 pm
I just freaking love Kijiji. Just bought a new (to me) mower for 6500.00. New one is 11 grand. Can’t hardly tell it’s used, 200 hrs 6 years old, “old man unit” (slang for religiously maintained, cleaner than new, oil changes every week etc…).


ditto.
just refurbished my shop with several high end tools off kijiji. most of them at least 50%off and barely used. Only thing I can’t seem to find on there are bottle jacks.

#46 AM in MN on 09.25.20 at 2:49 pm

#24 baloney Sandwitch on 09.25.20 at 1:25 pm
Nice post, Garth. Good point about houses and leverage. Its a potentially bad situation.
Couple of quibbles, though. 1) Debt – most companies have debt, so you can’t say stocks are not leveraged assets. Banks of course are leverage around 10x, others mostly less.
2) Buying and selling of stocks & etf’s. There is no productivity. Its basically A selling to B etc. New wealth only comes in via an IPO.

———————————————–

Very true and let me add…..

The debt/investment in real estate would be more productive if it were invested in productive business. In particular a good place to start would be in value added to raw commodities and food that gets exported.

This disparity is caused by two main factors, capital gains tax policy and Central Bank stress test/policies which pick and choose the winners and losers in the free interest rate lottery. The commercial banks are just conduits for these policies.

Not necessarily true that residential real estate can’t be exported for cash like a commodity or manufactured good. Vancouver for example has a huge real estate industry that caters to foreign buyers. No one expects to sell a multi-$M condo to locals. The cash comes into the country from abroad, and it feeds a massive industry of businesses that feed the construction. This is the country basically selling it’s relatively stable rule of law and private property rights as a commodity.

If you think the housing market might crash if interest rates go from 2% to 4%, check out your bond portfolio and the 50% haircut it will take…

#47 AGuyInVancouver on 09.25.20 at 2:49 pm

Higher interest rates are coming? Isn’t that what they said in Japan in 1993?

If rates barely budged when the US economy went sub-4% unemployment, they certainly won’t for the foreseeable future.

#48 Ace Goodheart on 09.25.20 at 2:51 pm

Re# 29 IHCTD9:

Where I live, you could use a pair of scissors to cut the front and back lawns of 90% of the houses and it would not take you more than 1/2 hr to do it.

That is one of the odd things about city life: the machines. I could count on one hand the number of people in this area who actually own a lawnmower and I would have fingers left over.

Most people use battery operated weed whackers.

The cars are all very old. My neighbours drive a Buick LeSabre from the 80s. Barely 150k on it. People don’t drive that often or that far. The cars last forever. I saw what appeared to be a late 1970s vw rabbit at the Home Depot yesterday. Full of dog hair but clearly in daily use.

We have cube vans from the 60s still being used for work vans.

And the old diesel trucks. It’s a paradise here. The most common are the bin loaders with the cable pullers. These things are ancient.

One of the best things about inner city life is the old vehicles.

#49 ElGatoNerodeYVR on 09.25.20 at 2:53 pm

In my humble opinion though Housing is our manufacturing as we keep selling them to new immigrants ( I was once one myself) and offshore buyers. We are selling the Canadian ownership dream.

#50 conan on 09.25.20 at 2:58 pm

As we keep saying under PET’s aristocratic son: Ignore us at your own peril European Canada, we don’t want your socialism.- The West

I love how JT buys the correct pipeline, then long after the market knows that Key Stone is dead , Kenney invests Fort Knox into it.

Forget the investigation of the WE nothing burger. There is an obvious transaction to put the microscope to.

#51 Don Guillermo on 09.25.20 at 2:59 pm

#42 OK, Doomer on 09.25.20 at 2:31 pm
“…it will add $20 billion a year to the cost of carrying $1,000,000,000,000 in existing debt. That’s twenty billion less for health care transfers, child care, seniors or renovating 24 Sussex.” – GT
++++++++++++++++++++++++++++

That’s 20 billion a year. Every stinking year.

Debt is forever

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

No biggie. In a decade or so $20 B will be the average cost of a house in the GTA.

#52 kc on 09.25.20 at 3:01 pm

39 the Jaguar on 09.25.20 at 2:22 pm

“Free speech is important. Abuse is too frequent”. I agree with that statement. It’s becoming too frequent on the blog.
Here is an example from yesterday:
#135 Gravy Train on 09.24.20 at 8:36 pm posts this comment back to a previous poster, (#35 kc on 09.24.20 at 1:16 pm) –‘ Get it now, dumbass?’.

XXXXXXXXXXX

Thanks for the support. I actually thought that comment was a showing of someones’ intelligence myself. when all else fails attack the poster and not the topic.

cheers

#53 N on 09.25.20 at 3:17 pm

First there’s Australia… then there’s Canada…
NINJA loans could be coming soon….

https://www.bloomberg.com/news/articles/2020-09-24/australia-to-loosen-lending-laws-to-boost-flow-of-credit?sref=Qfdx0Q4F

#54 Lambchop on 09.25.20 at 3:18 pm

Whelp, like that crappy relative/friend who borrows money and never repays it, just tries to borrow more, there comes a time when you cut your losses and close your wallet.

4 more years on the mortgage. That’s when I cut my losses and go part time, get my income under that magical $30k per year and stop paying taxes.

I can no longer tolerate watching my hard earned tax dollars thrown into the wind for votes.

It’s the only way I can effectively protest what is happening. Why get up at 5 am every day to work 8 – 10 hours so I can watch my overseers give every layabout a handout and every special interest group gets their virtue-bucks. Not interested.

#55 TurnerNation on 09.25.20 at 3:21 pm

Oof 2nd Wave of Bankruptcies coming, layoffs.
Reduced capacity and now this. For our health! Our health will improve drastically now. Why didn’t I think of this…

NO fun allowed in the New System.

https://www.blogto.com/eat_drink/2020/09/ontario-implements-11-pm-last-call-all-bars-and-restaurants/
Ontario’s government is banning the sale of alcohol at food and drink establishments after 11 p.m.

#56 TurnerNation on 09.25.20 at 3:41 pm

^ Remember that the most valuable land in the country is the land on which those downtown Vancouver and Toronto Restaurants and night clubs sit. Soon to become CONDOs.
Is this the development lobby at work ?

#57 NSNG on 09.25.20 at 3:45 pm

#191 P.Ooched on 09.25.20 at 10:38 am

Is is just me that finds it rather ironic, that in the country with the 2nd largest land mass on the planet, with one of the lowest population densities per sq KM and an abundance of the very thing that you construct houses out of – houses are ‘unaffordable’?

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

Last I heard, I think it was 1.5 million houses in Canada sit empty. I could be wrong though. I can’t remember when I heard that stat.

Another point:

If people are wondering why rents aren’t dropping much, it is probably because they will be even more “sticky” than house prices. The reason for this is rent controls IMO. With limited ability to raise rents much each year, landlords are very reluctant to lower them in recessions. They would instead give one or two months free or move-in bonuses and keep the rents the same so that they can continue at the high rate and add limited, government-restricted increases on the higher rates.

So if you see move-in bonuses and a month or two free rent to move in, I think it is safe to say the landlord is hurting for cash.

#58 Catalyst on 09.25.20 at 3:45 pm

In an era where wealth is measured in TP, your bathroom is truely gilded. A true public service, thank you Garth.

Garth, can you or one of your porsche homies (I would accept Sinan too but seems like more of a corolla guy) cover portfolio strategies that do well in rising interest rate environment? Presumably banks for increasing nims and insurance guys would do well but I don’t have any other good ideas and raising rate may send investors out of their divy stocks and into higher yielding debt instruments.

#59 Dolce Vita on 09.25.20 at 3:47 pm

“A survey out today from BMO found 40% of first-time homebuyers think this is a swell time to make a house purchase…”

Because they know that Gov Canada will bail their silly butts out:

“We took on debt, so Canadians wouldn’t have to.”

Well there Justin, Canadians are adding back the debt with RE that you took away.

#60 Wall on 09.25.20 at 3:49 pm

Considering all the points Garth pointed out such as high leverage, I think it is reasonable to tax capital gain on principal residence.

#61 dave on 09.25.20 at 3:55 pm

Ask any developer and Real Estate creates more jobs then any other sector in Canada.

It takes 50 some odd trades to finish a house. Each one need supplies from Distributors. Behind them is factories and behind them are resource sector jobs like Sawmills.

Real Estate can not collapse because it is too big too fail. Too many canadians have $1M mortgages, if the prices of housing drops significantly…its all over but the crying

Most transactions are not new builds, but resales. And anything can collapse. Don’t kid yourself. – Garth

#62 Captain Uppa on 09.25.20 at 3:55 pm

While I do immensely prefer home ownership, that on solid ground anyways, I don’t think people should be leveraging 20x. That’s scary.

The Premier of Manitoba, Brian Pallister, gave a great and moving answer to a question about the throne speech. He have a warning to younger people, including the PM, on the seductiveness of low rates and the destruction that can happen to people when they rise. Mr. Pallister was brutally honest and sincere. He almost cried when thinking of what happened to his parents back in the 80s.

Not sure if you saw it, Garth. But Brian Pallister is your kind of guy.

I can’t find the family story, but in this video he gives a great example of why people should be cautious with low rates and taking on debt.

Link: https://m.youtube.com/watch?v=6DmDof3609o

#63 Linda on 09.25.20 at 3:58 pm

People already in debt are adding to it. OK, I can see that if one is unemployed for whatever reason the chance that living expenses will exceed available funds from savings, CERB, EI, raiding the HELOC etc. is likely to occur, hence the increase in household debt. However, the implication I am getting from recent posts is that people are actively adding to household debt by borrowing funds in excess of what might be required to cover the monthly bills. I have to believe that those people have a regular income coming in, one that is not dependent on EI/CERB. I just have difficulty believing that financial institutions would continue to lend money to people who are currently unemployed, especially if those people haven’t been making payments on their mortgages/HELOC’s/credit cards etc. If the opposite is actually true, call me baffled. Banks are not charities, so what gives?

#64 Ace Goodheart on 09.25.20 at 4:06 pm

Reverse gentrification: what happens when your Tony hood starts moving backwards:

https://www.theglobeandmail.com/real-estate/vancouver/article-vancouvers-downtown-eastside-condo-owners-worry-about-rise-in-crime/

RE: #55 TurnerNation on 09.25.20 at 3:21 pm

Oof 2nd Wave of Bankruptcies coming, layoffs.
Reduced capacity and now this. For our health! Our health will improve drastically now. Why didn’t I think of this…

NO fun allowed in the New System.

https://www.blogto.com/eat_drink/2020/09/ontario-implements-11-pm-last-call-all-bars-and-restaurants/
Ontario’s government is banning the sale of alcohol at food and drink establishments after 11 p.m.

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

I never understood the need for late night drinking.

Day drinking is much more fun.

And what is the point of spilling out a bunch of drunk people onto the City streets at 3am? There is no TTC operating. No busses. I mean, unless they were all responsible and saved enough money for a cab or an Uber, a lot of these folks are driving home.

Last month another drunk yahoo drove his pick up truck directly into a house at the end of a T-intersection in our neighbourhood. This is a common event. The year before, someone wiped out about 10 lawns and destroyed almost 300K worth of SUVs when they hopped the curb after passing out from too much alcohol, at 4am (as usual).

If they never allow drinking after 11pm again, I won’t be complaining.

Drink during the day people. You can take the subway home.

#65 Dolce Vita on 09.25.20 at 4:06 pm

Some VIRUS PORN.

Ok, so I’m watching CTV National from last night and they have this blood soaked graphic of new COVID-19 cases in Canada:

https://i.imgur.com/4wxGeCJ.png

Look it, I’m all for being vigilant and taking this pandemic seriously, especially living here in Italia. But I mean Canada, this was Europe new cases this morning:

https://i.imgur.com/KACJGsD.png

I mean, your 1341 new cases = Amateur Effort.

So Canada, if you were The Netherlands, you would have this many cases:

5534

or if you were France:

9032

if you were Spain:

8531

or Czechia:

10232

etc.

Worry when you start to see deaths going up exponentially along with new cases, and yes people are getting sick I get that but BLOOD SOAKED GRAPHICS are a bit much.

Speaking of exponential growth in DEATHS here are 2 week trends for 4 or the G7 nations with Spain thrown ’cause I like España (what is there not to like) – observe 2 week trend in % deaths:

https://i.imgur.com/eVHKFQL.png

Ya deaths per day still low but those double digit increases…things are about to get a whole lot worse in Europe.

———————-

Do you what you think is best Canada but have a care with the graphics meant to frighten. Bad enough people getting sick and some dying, no need for exaggeration.

#66 S.O on 09.25.20 at 4:09 pm

Im with you, I think too much dept is bed but it seems that the overeducated academics are pushing MMT (Modern Monetary Theory) with Chrystia Freeland
on board with the concept, but to me it doesn’t make sense, and too be honest I don’t see it working anywhere.

#67 MF on 09.25.20 at 4:14 pm

#2 blogshark on 09.25.20 at 12:21 pm

Hi. I was born around that time, as were most of my friends.

Who the hell are you to speak for our entire generation?

Nobody. That’s who. Go back to social media and eat up more propaganda about “millennials”.

MF

#68 dave on 09.25.20 at 4:21 pm

The Honorable Pierre Poilevre – never heard of him till yesterday….on this blog.

His 10:24 minute speech provided such clear simple thinking…reflecting on the past and systematically providing a rational solution for the future. Clearly he is thinker who understands problems and knows what it take to fix them. Unlike our current PM…preach to the country with a cloudy hazy mindset…. so he can cleverly pile on debt so that he can win the next election.

Real Estate had gone too far for many many years, if it doesnt change course now our country is doomed.

#69 Stan on 09.25.20 at 4:21 pm

To me it looks like the current government is seriously betting on MMT. The Throne Speech has MMT marks all over it:

“With interest rates so low, central banks can only do so much to help. There is a global consensus that governments must do more. Government can do so while also locking in the low cost of borrowing for decades to come.”

So that’s the plan. Keep interest rates low for a generation or two; fight inflation using fiscal (not monetary) instruments. Implement “Job Guarantee” program (also part of the MMT agenda).

If chose between UBI and Job Guarantee, I’d say JG makes much more sense.

#70 Stone on 09.25.20 at 4:22 pm

https://globalnews.ca/news/7359253/westjet-employee-pay-cut-wage-subsidy-coronavirus/

Sooooo, up to 53% cut in pay. Will this pass the smell test? Will other companies follow suit?

I don’t care that interest rates are next to zero. If cutting pay up to 53% occurs through most companies, how will these employees impacted by this pay for the jumbo mortgage on their overpriced slanty-semi?

Has the reckoning arrived?

#71 dave on 09.25.20 at 4:22 pm

Hit submit too soon…

Canada has to pivot to natural resources and build a pipeline. My god, everyone knows this is the answer and yet politics says NO

#72 OK, Doomer on 09.25.20 at 4:24 pm

#51 Don Guillermo on 09.25.20 at 2:59 pm
#42 OK, Doomer on 09.25.20 at 2:31 pm
“…it will add $20 billion a year to the cost of carrying $1,000,000,000,000 in existing debt. That’s twenty billion less for health care transfers, child care, seniors or renovating 24 Sussex.” – GT
++++++++++++++++++++++++++++

That’s 20 billion a year. Every stinking year.

Debt is forever

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

No biggie. In a decade or so $20 B will be the average cost of a house in the GTA.
+++++++++++++++++++++++++++++++

And this is why we can’t have nice things..

#73 NSNG on 09.25.20 at 4:27 pm

The BC election:

58% of voters disapprove of Horgan calling the election

https://vancouverisland.ctvnews.ca/polls-show-b-c-ndp-leading-in-early-days-of-election-1.5118945

I think the best outcome for BCers is for the Greens to gain some seats at the expense of both the Liberals and the NDP, this would chastise the two leading parties.

The Liberals are showing that they haven’t learned a thing from their loss of power after 16 years of rule. Many of their followers are still bleating about the speculation tax even though many voters approve. The surging BC housing markets show it hasn’t made a significant dent in the crazy.

The NDP should fall back based on their naked power grab. Many people are still recovering from the trauma of Covid and how government mismanagement of this crisis has destroyed their lives and businesses. In the midst of that, you have the NDP throwing taxpayer dollars around for an election that many would consider unsafe.

Despite that, I think they will get away with their call. Even though they do deserve to lose seats and a loss of seats to the greens will continue to keep them in check, I think the voters will make the mistake of giving them more power and thus having them move BC even more to the left

#74 Quintilian on 09.25.20 at 4:38 pm

>Real Estate can not collapse because it is too big too fail. Too many canadians have $1M mortgages, if the prices of housing drops significantly…its all over but the crying<

Good spin Dave, but only in the bubble markets do many Canadians have 1M mortages.

And your cartel’s manufactured housing bubble that is the death knell of the legitimate construction industry.
The more unaffordable housing becomes, the less buyers.

The more spent on basic shelter, the less available for consumption, be it food, cars or education.

Your cartel is killing the real economy.

#75 dogwhistle on 09.25.20 at 4:41 pm

“Finally, lots of residential real estate transactions are non-productive. Aside from realtors, lender dudes, lawyers and movers, nobody gains. No new jobs are created. No products produced for export or domestic sale. No factories built, stores opened or offices launched.”

—————————————————

Amen to the above. One of your most balanced posts in a long time. If you ever get back into politics could you explain that to the Ottawa peeps?

PS: I’ll stay in your bathroom as long as you have TP. It is the new commodity for our century. Sad.

#76 Cottagers STAY THE HELL AWAY! on 09.25.20 at 4:41 pm

The season’s OVER.

Keep your inbred southern hillbilly germs in Oakville, where you belong.

Just.

Stay.

Home.

#77 Millenial Math Lesson Time on 09.25.20 at 4:45 pm

Your hero, T2, wants to tax capital gains on houses. Mills love that idea as they think it will gut Boomers. It possibly will, but someone’s loss won’t mean a clean win for you. And here’s the math:

Assume you buy a house for $400K. Over the years, you spend $40K on a new roof and other repairs. Then you decide to reno the kitchen and bathrooms for another $60K. You now have $500K invested, not counting interest paid on your mortgage, taxes, etc.

You get transferred, and the house now sells for $510K, leaving you $500K after RE commissions.

On your taxes, you must declare a $100K capital gain, as none of the renos or maintenance costs are deductible.

So now you pay a tax bill of $50K on a capital gain that you never got to keep as it went into the house. Your net is $450K after investing $500K. You lost $50K.

Net after taxes is you did all the work, took all the risk and the government kept all of the upside. And you got stung for $50K by your government. You’re welcome.

And that is how Marxism works, and that’s also where slums start.

People who can do the math realize there’s no point in putting granite counter tops and jacuzzi bidets. They run everything into the ground because there’s no incentive to maintain it, let alone improve it.

Mills, is this the life you want? Or are you better than that?

#78 MF on 09.25.20 at 4:47 pm

#62 Captain Uppa on 09.25.20 at 3:55 pm

“While I do immensely prefer home ownership, that on solid ground anyways, I don’t think people should be leveraging 20x. That’s scary.”

-And that’s what we first time buyers are now expected to do. Yeah no thanks, I’ll pass on taking on soul sucking endless debt just so I can finance some guy’s poor 1980’s strategy for retirement.

I remember in February, when this pandemic was just getting started. Fear was everywhere.

And all you could talk about how great it was that interest rates were dropped.

Well,

This is why we are seeing a strong shift leftward in politics. When someone making 20$/hour sees a house going for 1.6 million when his parents bought it for 200k do you think that person will vote for fiscal austerity?

Low interest rates worldwide are distorting everything from politics to economics. It’s becoming dangerous to the extent that we are seeing increasingly radical political and economic strategies being employed by individuals and politicians everywhere as everyone is forced to adapt.

Maybe big deficits will be what is needed to finally force interest rates upward, and administer the medicine desperately needed to restore some semblance of balance in our political and economic systems after all.

MF

#79 dogwhistle on 09.25.20 at 4:49 pm

#41 not 1st on 09.25.20 at 2:28 pm
Hmm, its too bad Canada didnt have an abundant supply of something the world needs that we could sell to cover our debts and spending.

———————————————–

Water?

#80 Mike in Cowtown on 09.25.20 at 4:50 pm

“You cannot rent cash flow.” Actually you can…it’s called a reverse mortgage. Expensive? Stupid? Yup

#81 Proud CERBian on 09.25.20 at 4:57 pm

….four million people worried about CERB cheques ending next Thursday (they won’t, of course).

From far and wide, O CERBia, we stand on guard for thee!

#82 Don Guillermo on 09.25.20 at 4:57 pm

#68 dave on 09.25.20 at 4:21 pm
The Honorable Pierre Poilevre – never heard of him till yesterday….on this blog.

***************************************
That alone is very concerning

#83 Don Guillermo on 09.25.20 at 5:01 pm

#78 dogwhistle on 09.25.20 at 4:49 pm
#41 not 1st on 09.25.20 at 2:28 pm
Hmm, its too bad Canada didnt have an abundant supply of something the world needs that we could sell to cover our debts and spending.

———————————————–

Water?

———————————

Rainbow sidewalks

#84 Don Guillermo on 09.25.20 at 5:08 pm

#72 OK, Doomer on 09.25.20 at 4:24 pm
#51 Don Guillermo on 09.25.20 at 2:59 pm
#42 OK, Doomer on 09.25.20 at 2:31 pm
“…it will add $20 billion a year to the cost of carrying $1,000,000,000,000 in existing debt. That’s twenty billion less for health care transfers, child care, seniors or renovating 24 Sussex.” – GT
++++++++++++++++++++++++++++

That’s 20 billion a year. Every stinking year.

Debt is forever

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

No biggie. In a decade or so $20 B will be the average cost of a house in the GTA.
+++++++++++++++++++++++++++++++

And this is why we can’t have nice things..

+++++++++++++++++++++++++++++++

I moved from the GTA years ago. I have nice things ;>)

#85 Stan Brooks on 09.25.20 at 5:14 pm

Canadians saved 2 % of their income in pre-covid times.
So a house in GTA translates to 800-1000 years of savings, condo to 500.

That for basic shelter. On top of it comes taxes, heating, utilities, etc.

Then we spent on education with the real prospects of finding good paying job being close to zero.

People eat crap – glucose fructose stuff and GMO, antibiotic rich food, rarely have any entertainment (try that in GTA), have zero perspective of retirement if not on government job.

And that is called ‘high standard of living’

At the same time people in Greece and Spain enjoy quiet and calm, fruitful life, much better weather
and are apparently ‘poor’.

The degree of brainwashing in this mental institution is truly astonishing.

Cheers,

#86 yorkville renter on 09.25.20 at 5:18 pm

greedy sellers? No… I’ll go with dumb buyers.

If someone wants to pay you MORE than you want, why would you say no?

#87 Ponzius Pilatus on 09.25.20 at 5:28 pm

#67 MF on 09.25.20 at 4:14 pm
#2 blogshark on 09.25.20 at 12:21 pm

Hi. I was born around that time, as were most of my friends.

Who the hell are you to speak for our entire generation?

Nobody. That’s who. Go back to social media and eat up more propaganda about “millennials”.

MF
——————-
From what I see and hear from my Mill son and his friends I can say “the kids are alright”.
If they make mistakes, they will learn from them.
Like our generation did.
Not sure why everyone is so doom and gloom?

#88 Bob in Hamilton on 09.25.20 at 5:30 pm

“But it’s not just optimism. It’s delusion.”

So, Mr. Garth, how does it feel to be the lone sane voice in the wilderness?

This country lost its way a long time ago…get used to it.

#89 Lisa on 09.25.20 at 5:31 pm

Kids back to school. I have already had to take them each for a covid test for minor symptoms. Queues are crazy long. Staff working their asses off. Sigh. I hope things get better!

#90 Doug t on 09.25.20 at 5:35 pm

Step right up ladies and gentlemen to the greatest show on earth – the world is a three ring circus and we are all performers jumping through hoops, walking the tight rope, dancing with the monkeys – it’s all a show and everything goes – do what you want, buy what you want, indulge in what you want cause in the end it’s all just a circus of freaks and clowns – and when you jump through your last hoop, dance your last dance with a monkey and Exit your mortal coil, the circus rolls on without you and the freak show never ends

#91 Jake on 09.25.20 at 5:43 pm

#19 Millennial 1%er

My parents fled a war torn Europe to start a new life in Canada. My mother had to sell her wedding ring to help pay for the boat across the pond. Landed at Pier 21 in Halifax with a couple of suitcases and no money and put on a train for Toronto. I grew up in the 60s in a 2 storey 1930s home by sharing the basement and upstairs with 2 other families. We were 4 people sharing the main floor with the dining room converted to a bedroom and no main floor washroom (had to share the basement bath). We lived like that for 8 years until my parents could buy the house. Where there is a will there is a way.

#92 not 1st on 09.25.20 at 5:43 pm

Fitch is warning Canada again. Are our politicians tone deaf or what? Canada is heading to a BBB rating just like Italy. Good job Justin.

https://www.fitchratings.com/research/sovereigns/canadas-spending-pledges-to-push-federal-deficit-higher-still-25-09-2020

#93 SoggyShorts on 09.25.20 at 5:43 pm

#43 OK, Doomer on 09.25.20 at 2:43 pm
#29 IHCTD9 on 09.25.20 at 1:36 pm

I had to do a bit of minor tune-up wrenching on it, but I spent my youth hot-rodding cars, not playing video games. This puts these types of deals out of reach for the Mills. No mechanical skills in these kids.

Same with my houses. I can’t play Fortnite but I can frame, re-wire and re-plumb a house. Again, no skills in the Mills, so they have to pay full retail.

********************
I’m not a mill, but I also can’t do those things– because I don’t like them.
Also, I charge more money per hour than those trades charge me so it makes way more sense to pay a pro full rate and just do a couple of side jobs in my profession.

It’s simple math. Spend 2h of my time doing something I don’t enjoy, or work for ~40m doing something I’m great at and use the money to pay a pro to do that other job.

#94 Yukon Elvis on 09.25.20 at 5:44 pm

High interest rates allow people with money to make more money. Bad. Low interest rates allow people with no money to have nice stuff too. Good. No change on the horizon. The days of high interest rates are over. Rates will stay low and housing will stay costs will stay high.There will be minor peaks and valleys in both along the way. Dig in for the duration. Make your plans with that in mind. Or get run over by it and get left behind.

#95 1-800-DOCTORB on 09.25.20 at 5:48 pm

If our leaders are so worried about our safety and the so-called “second wave” why aren’t they converting public buildings into temporary hospitals? Why not roll out weekly covid testing for high-risk populations? What about mandatory testing for arrivals from out of country?

Oh right…this isn’t about the actual disease. It’s about using a “pandemic” to push a political agenda.

Vote buying with debt like never seen before. Absolute garbage economic foresight by this federal government. Unbelievable we are letting this happen to us. I worry for our future.

#96 not 1st on 09.25.20 at 5:51 pm

Todays spending announcements;

$440M for vaccines for people in countries outside Canada
$320M for NL oil and gas industry
$50M for filmakers.

#97 binky barnes on 09.25.20 at 5:52 pm

Fret not folks….

King Justin (the Teflon Man) has it all worked out. The future of Canadians–both in the short and long term–is in capable hands.

BB

#98 Midnights on 09.25.20 at 5:56 pm

Great article, sounds like what Pierre Polievre was saying.
https://youtu.be/0WdVnRLAvRQ

#99 Damifino on 09.25.20 at 5:59 pm

I watched the Poilevre speech in the House.

Mon Dieu! Not a single word about sustainability, gender, green initiative or racism. Nope. Not even not so much as a call out to the hereditary chiefs.

Instead, a spate of romantic mumbo-jumbo about respect, honor, selflessness, hard work and personal responsibility.

Who’s going to take that seriously?

#100 Flop... on 09.25.20 at 6:02 pm

I don’t get the Liberal game of Wokey Pokey.

Hokey Pokey, I get it… it was drilled into me a young age.

Put your left foot in
Your left foot out
Your left foot in
And shake it all about
You do the hokey pokey
And turn yourself around

Yada, yada…

Wokey Pokey, no clue.

The Liberals pull 380 Billion out, don’t put anything in, shake it all about, yammer on about a pandemic, and then tell you it’s your fault we got turned around…

M46BC

#101 Ferry Boy on 09.25.20 at 6:04 pm

Slightly off topic for today but got notified last week that 5 yr fixed rate to lock in was 1.99%. I didn’t get around to signing it and now its dropped to 1.92%. Unbelievable and its from a Big 5 bank. Current rate is 1.75% variable. Its on our city condo which I would like to keep… for lifestyle not rental. I am listening to Garth on this one and not being greedy ..or dumb.

#102 Ponzius Pilatus on 09.25.20 at 6:06 pm

68 dave on 09.25.20 at 4:21 pm
The Honorable Pierre Poilevre – never heard of him till yesterday….on this blog.

His 10:24 minute speech provided such clear simple thinking…reflecting on the past and systematically providing a rational solution for the future. Clearly he is thinker who understands problems and knows what it take to fix them. Unlike our current PM…preach to the country with a cloudy hazy mindset…. so he can cleverly pile on debt so that he can win the next election.
——————————-
Not sure if you can deduct all this from a 10 minute speech.
But maybe you’re right and he is the bright future of the Conservatives.
But he’ll have to bid his time.
The next Prime Minister will most likely be a woman, so if he leapfrogs O’Toole he may make a competent Leader of the Opposition.
And then go for the big price.
So hang in there folks.

#103 not 1st on 09.25.20 at 6:09 pm

I see Ontario started to lockdown again just as this came out from the WHO.

Our egghead leaders got this 100% wrong

WHO Says Covid-19 Asymptomatic Transmission Is ‘Very Rare’

https://www.youtube.com/watch?v=NQTBlbx1Xjs&feature=youtu.be

#104 yvr_lurker on 09.25.20 at 6:10 pm

# 73 NSNG
—————–
Same province, different world. In my view the NDP has provided very strong governance and accountability and I was delighted when they brought in the speculation and foreign buyer taxes and launched the money laundering probe. Left of center for sure, but no where radical; no stupid fast ferries and no blanket policy of killing all major resource projects (as the Lieberals had claimed they would). Province was doing just fine pre-covid. Housing prices due to the spec taxes were coming down and the rich foreigners speculating on real estate like pieces on a monopoly board were largely cleared from the market. It is not the NDP’s fault that the BOC has recklessly and yet again lowered the interest rate to such a ridiculous level to spur demand and goose the housing market and so that the Feds can continue throwing money in all directions. Big mistake.

Comrade Horgan has a spine, is reliable and largely accountable, having implemented a large number of items in the platform they had. They have my trust.

Do you prefer “wacky times” Wilkinson, the poster boy of patronage appointments and white privilege under Clark, who is mainly comfortable giving speeches at the Royal Vancouver Yacht Club to other likewise entitled individuals? With previous involvement and ties to corrupt foreign-led companies.

https://thinkpol.ca/2018/02/04/new-bc-liberal-leader-linked-corruption-china/

Wilkison and his cohort. Not my people, and certainly does not have my vote. My bet is that Horgan will get his clear and well-deserved majority.

#105 Nsqt on 09.25.20 at 6:12 pm

Off topic , but something to ponder. I wonder how long it will be before insurance companies (life and disability) will add another section to their application. Have you been tested for Covid? Yes or No, If yes what were the results? With this darn virus having long lasting affects on some and the uncertainty of future health issues from this. If insurance companies penalize those who have been tested and also those who have tested positive there will be a lot of people who will be uninsurable.

#106 Leftover on 09.25.20 at 6:12 pm

#46 AM in MN

“If you think the housing market might crash if interest rates go from 2% to 4%, check out your bond portfolio and the 50% haircut it will take…”
____________________________________________

Bond prices don’t work that way. Your scenario would result in about a 16% drop on 10 year paper.

Go here: https://dqydj.com/bond-pricing-calculator/

#107 Gravy Train on 09.25.20 at 6:19 pm

#39 the Jaguar on 09.25.20 at 2:22 pm
“‘Free speech is important. Abuse is too frequent.’ I agree with that statement.[…]”

#52 kc on 09.25.20 at 3:01 pm
“Thanks for the support.[…] when all else fails attack the poster and not the topic.”

I agree with you both. I was out of line with the name-calling, and I apologize to you both unreservedly for the ad hominem attacks. Time will tell as to who’s right on the arguments.

#108 COVID Sucks on 09.25.20 at 6:24 pm

We’ll need a helluva a roaring 20’s redux to inflate this all away……

#109 Nonplused on 09.25.20 at 6:39 pm

Or it could be a sign of inflation.

Inflation is a difficult thing to understand. A lot of people think it is “rising prices”, which is the simplest definition, and from that angle what’s happening in the housing market would certainly indicate inflation.

The government of course prefers to use CPI, which is a measure of certain goods and services which is then weighted, substituted, factored, smoothed, and beaten into submission. It is probably grossly understated but directionally it is probably ok. If the price of steak rises too much they can substitute ground beef but that doesn’t stop ground beef from rising.

But the real argument is what causes it? Is it economic growth? I would say no because that can be easily met with more money. Economic growth should cause deflation as the same amount of money has to exchange increasing amounts of goods and services. So is it too much money then? That seems more likely but it isn’t simple, because the central banks can print the money but they can’t control where it goes or what it is spent on. Printing more money isn’t going to cause inflation if it all ends up in bank accounts or under the mattress.

But what if it all ends up in one particular bubble, in this example housing? Then in this case I would say yes, there is your inflation. To much money is being printed and it is all flowing into one asset (although there can be more than one simultaneous bubble but it is rare in history, usually it is just tulips or the Mississippi bubble).

So if housing is in a bubble, and I would contend it is, how does it end? Well, history teaches us that all bubbles end in collapse. That collapse is not a disaster, prices return to normal after all the bankruptcies are processed. Take the tulip bubble for example. They still grow entire fields of them in Holland and sell them for profit, but the prices are reasonable. You can’t get rich buying a few bulbs anymore.

So I would say yes, there is inflation beyond the government measures, and it is mostly going into the housing bubble. History teaches us that all bubbles eventually “pop” (deflate would be the better term but it can be quite dramatic or should I say happen quickly). That is why they are called “bubbles” while they are happening and manias once they are over.

Unfortunately while the music still plays bubbles are also self-reinforcing. The price of your house goes up? You can borrow more to buy more houses and rent them out. Then all the houses you own go up in price? Well now you are a true Monopoly landlord. Just keep borrowing. After all if you are in for a dime you may as well be in for a dollar.

And despite all the bloviating coming from the BOC and CMHC their policies are what is inflating this bubble. Too much money is being made available at too low of a cost.

Are stocks also in a bubble? Not as likely, for reasons Garth has outlined, but when rates do finally rise stocks will go down because they also are sensitive to interest rates. Well, Tesla is in a bubble, but I don’t know that you could say the whole stock market is. The “stock market” is kind of a misnomer. It isn’t one thing. It is more of a “market of stocks”. The plural of it is important. It could be called a “stocks market” with the s. But it isn’t one thing. The exchange is one thing, but the stocks are not.

#110 Turnip Nayiyion on 09.25.20 at 6:43 pm

Great time to buy – they are holding immigration down so less buyers. Price has to drop.

#111 akashic record on 09.25.20 at 6:44 pm

#90 Jake
That’s how many immigrants do it today. They suck it up until they make it.

#112 SoggyShorts on 09.25.20 at 6:51 pm

#90 Jake on 09.25.20 at 5:43 pm
#19 Millennial 1%er

My parents fled a war torn Europe to start a new life in Canada. My mother had to sell her wedding ring to help pay for the boat across the pond. Landed at Pier 21 in Halifax with a couple of suitcases and no money and put on a train for Toronto. I grew up in the 60s in a 2 storey 1930s home by sharing the basement and upstairs with 2 other families. We were 4 people sharing the main floor with the dining room converted to a bedroom and no main floor washroom (had to share the basement bath). We lived like that for 8 years until my parents could buy the house. Where there is a will there is a way.

******************************
Typical Boomer, born on third base, thinks he hit a triple…

#113 New Trend on 09.25.20 at 6:52 pm

WFH is becoming WFAITW.

https://www.nationalgeographic.com/travel/2020/09/will-remote-working-lead-to-longterm-travel-opportunities-coronavirus/?cmpid=org=ngp::mc=crm-email::src=ngp::cmp=editorial::add=SpecialEdition_20200925&rid=9F2ADC0F126A5E81B275081A20EA6037

My wife, who is a work from home pioneer and was doing it years before covid, also dabbled in this new trend. She would book campsites based on internet availability (even if she had to hot spot her phone to do it) and she would work while me and my son went for an early morning zipline ride. Then she’d log off at 3pm and head for the pool.

(PS, ziplines are fun, but per minute they are very expensive. You spend most of your time waiting for the other people in you group.)

#114 Nonplused on 09.25.20 at 6:56 pm

#4 Alex on 09.25.20 at 12:25 pm
> That’s twenty billion less for health care transfers, child care, seniors or renovating 24 Sussex.

The federal government (and all sovereign currency issuers) are not – can not – be fiscally constrained. They can always purchase anything and everything that’s denominated in their currency. In a way you could say that the federal government neither has nor does not have money.

If it wants to fund health care, child care, or seniors then it can, no matter what the interest rates are. We can discuss the impact of this spending on inflation, but interest rates are no constraint at all.

—————————-

Nope. We have example after example after example of what happens when a sovereign over-issues currency. Inflation, and usually ending in hyperinflation. Printing money does not produce more goods and services no matter how noble the justification.

#115 crowdedelevatorfartz on 09.25.20 at 6:56 pm

@Sail Away re sara
“Reminds me more of Sail Away.
———-
Thank you! That is one handsome stud-muffin.”

+++
I do believe, unconsciously, she fantasizes about your butt.

#116 KLNR on 09.25.20 at 6:58 pm

@#86 Ponzius Pilatus on 09.25.20 at 5:28 pm
#67 MF on 09.25.20 at 4:14 pm
#2 blogshark on 09.25.20 at 12:21 pm

Hi. I was born around that time, as were most of my friends.

Who the hell are you to speak for our entire generation?

Nobody. That’s who. Go back to social media and eat up more propaganda about “millennials”.

MF
——————-
From what I see and hear from my Mill son and his friends I can say “the kids are alright”.
If they make mistakes, they will learn from them.
Like our generation did.

Not sure why everyone is so doom and gloom?
———————–

When you get up there in age you should get your vitamin B12 levels checked. deficiency can mess with your mood/mind. put you in a perpetual doomy-gloomy mood

#117 The TRUMP Pandemic/Depression on 09.25.20 at 6:59 pm

The Honorable Pierre Poilevre,,, excuse me..!!! Hardly honorable,,, simply one of Harper’s wing nuts… Thank dog we passed that phase… Wont ever be anything other than a loud mouth nothing…

#118 KLNR on 09.25.20 at 7:00 pm

@#85 yorkville renter on 09.25.20 at 5:18 pm
greedy sellers? No… I’ll go with dumb buyers.

If someone wants to pay you MORE than you want, why would you say no?

always get a laugh out of the ‘greedy seller’ comments.
Like anyone is being forced to buy anything lol.

#119 crowdedelevatorfartz on 09.25.20 at 7:03 pm

@#33 Burnaby Boy
“My neighbor who is a Teachers Assistant just drove home for after nine days back at work and with all the issues the schools have the teachers took a professional development day. With a provincial deficit of 13B”
++++

Now now BB.
Lets not judge.
After 6 months off work and an extra week in Sept to “prepare” for the new school year….
Our hard working and intrepid Teachers and their assistants DESERVE a day off to “professionally develop” after …. what was it?
2 weeks back at work?

An employee of mine’s wife is a TA and she was allowed to choose between , “yoga”, “working from home”, or a day off without pay.
She chose “yoga” to relieve herself of the never ending stress of the past two weeks at the salt mine……

I cant wait to see what 2021 brings with massive govt debt and deficits…….
Wont be a lot of sympathy for teachers walking out ” because its for the kids”

#120 Flop... on 09.25.20 at 7:03 pm

Reading between the lines, I think Garth wants more bathroom humour on here.

You Northern Hemisphere folk are weird like that.

Can’t do it.

Still get traumatized every morning watching my poop disappear in the opposite direction…

M46BC

#121 KLNR on 09.25.20 at 7:05 pm

@#76 Cottagers STAY THE HELL AWAY! on 09.25.20 at 4:41 pm
The season’s OVER.

Keep your inbred southern hillbilly germs in Oakville, where you belong.

Just.

Stay.

Home.
—-

still at it eh.
man, you are insufferable.

#122 Oakville Rocks! on 09.25.20 at 7:07 pm

@#62 I totally agree with you on Brian Pallister. Every time I hear him speak he always has a thoughtful, smart comment / answer.

It would be great if he would consider running for the leadership of the party. I am not sure what is holding him back. Do people from SK & AB not consider Manitoba people to be real westerners? Is Pallister considered a red Tory?

During this last leadership contest I got pretty tired of the number of “not a real Conservative” comments thrown at MacKay and O’Toole’s tacit endorsement of this with his “True Blue” campaign.

At a time when a credible opposition is needed more than ever, the Conservatives don’t seem to be able to get out of their own way. O’Toole so far has been a disappointment. This nonsense about the country being more divided than ever as his response to the Throne speech really hurts his cause. And there is valid criticism of the Throne speech’s lack of details and seeming disregard for AB and the commitments the gov’t made during the last Throne speech. But More divided than ever – nonsense.

#123 Drinking on 09.25.20 at 7:10 pm

I promise you Garth that you and I will never be in the same bathroom! :)

Read an article today that Alta is in serious danger of over producing single housing; seeing a bargain in the future! Anybody that thinks that Alberta is dead is a fool perhaps a The Greater Fool!

#124 Parenting Failure? on 09.25.20 at 7:16 pm

#43 OK, Doomer on 09.25.20 at 2:43 pm

When I am wrenching I invite my son to help. He doesn’t want to help he wants to do it. Recently he replaced the water inlet valves on our washer. He’s replaced the brake cable on our TW. I barked instructions on those but he also figured out how to use a hedge trimmer and demolition saw to trim trees and bushes all on his own. He mows the lawn on an expensive tractor. He knows how to set up a tent and catch fish. He’s 14. If your millenial doesn’t know how to change a light bulb or install a solar panel on your RV, you didn’t spend enough time with them. Leadership means passing on the knowledge.

Next I’ll be changing the oil on my street bike, probably without touching it myself.

#125 cramar on 09.25.20 at 7:24 pm

I fear total chaos after the U.S. election.

The Election That Could Break America

https://www.theatlantic.com/magazine/archive/2020/11/what-if-trump-refuses-concede/616424/

#126 Figmund Sreud on 09.25.20 at 7:24 pm

ICYMI: … Justin Bieber is now a champion of oil and gas jobs! It’s true, … watch:
P
https://youtu.be/pvPsJFRGleA

Source:

Justin Bieber Highlights Oil Pain
https://www.rigzone.com/news/justin_bieber_highlights_oil_pain-23-sep-2020-163365-article/

Best,

F.S.- Calgary, Alberta

#127 Craig Tannesh on 09.25.20 at 7:27 pm

Your Japan comparisons about low interest rates for decades is missing one main point. Both their real estate and stock markets never recovered for 30 years.

Just like Garth said, you better hope interest rates rise again because if that does not happen it means we are in for more really terrible problems than a terrible economy.

You better hope we are not like Japan because real estate is toast big time.

#128 Wrk.dover on 09.25.20 at 7:30 pm

I agree with you both. I was out of line with the name-calling, and I apologize to you both unreservedly for the ad hominem attacks. Time will tell as to who’s right on the arguments.

——————————————-

Untuck the shirt and hang with your local blue collars this weekend Garth. It will be fun and end well.

#129 Flop... on 09.25.20 at 7:36 pm

So if there are 3,600 Australian Millionaires collecting their version of CERB, and we extrapolate the numbers, which is always dodgy on a 7 year old IPad that I wore out on a tribute project, it is safe to guess that 5,400 Canadian Millionaires are currently collecting CERB.

Correction.

I don’t want to get a suspension.

There are currently 5,399 Canadian Millionaires collecting CERB…

M46BC

#130 crowdedelevatorfartz on 09.25.20 at 7:39 pm

@#111 WetDiapers
“Typical Boomer, born on third base, thinks he hit a triple…”
+++

Let me guess.
Historic low bank rates.
Historic low unemployment(until Covid).
Free rent in the basement.
Mom cleans your unmentionables.
Helicopter parents ready to “bail you out” at the first squeal of help.

Sound like you were born on home base , decided to stay there, and still want more…….

At the risk of plagiarizing Millennial Delusionists drivel.

Get ready for the recession Millennials …..or be run over by it.

#131 Reximus on 09.25.20 at 7:41 pm

#85 yorkville renter on 09.25.20 at 5:18 pm

greedy sellers? No… I’ll go with dumb buyers.

If someone wants to pay you MORE than you want, why would you say no?

=====

It’s not like over-ask sales are new…I paid over-ask in 1998! mind you it was only by 4k, and the previous house bid I made was low by 48k! and that bid I made was also over-ask!

#132 Nonplused on 09.25.20 at 7:47 pm

#80 Proud CERBian on 09.25.20 at 4:57 pm

“From far and wide, O CERBia, we stand on guard for thee!”

That was pretty good. Except how do you get the CERBians to enroll in the army? The pay for privates isn’t any better and CERBians don’t have to get shot at or hike around in the mud carrying 50 pounds of gear. Nobody is going to be “standing on guard” anymore. Unless, of course, WWIII is played on Fortnight.

#133 Sail Away on 09.25.20 at 7:50 pm

#92 SoggyShorts on 09.25.20 at 5:43 pm
#43 OK, Doomer on 09.25.20 at 2:43 pm
#29 IHCTD9 on 09.25.20 at 1:36 pm

I had to do a bit of minor tune-up wrenching on it, but I spent my youth hot-rodding cars, not playing video games. This puts these types of deals out of reach for the Mills. No mechanical skills in these kids.

Same with my houses. I can’t play Fortnite but I can frame, re-wire and re-plumb a house. Again, no skills in the Mills, so they have to pay full retail.

————-

I’m not a mill, but I also can’t do those things– because I don’t like them.

Also, I charge more money per hour than those trades charge me so it makes way more sense to pay a pro full rate and just do a couple of side jobs in my profession.

It’s simple math. Spend 2h of my time doing something I don’t enjoy, or work for ~40m doing something I’m great at and use the money to pay a pro to do that other job.

————-

As with most things, the answer isn’t straightforward. The logistics of scheduling/delivering/renting/picking up can add a lot of inconvenience to a day.

I enjoy general maintenance on cars, motors, and houses, so will pick up a part to be replaced at my leisure- then usually do the work with a beer in hand and a couple neighbours hanging around ‘helpfully’ offering tips. Also, knowing cars, when something goes cattywampus in the bush, we can usually jury rig a fix.

But nothing ever goes wrong with the Tesla, so the only maintenance now is on the 4Runner, trailer bearings, sailboat, house projects and the like. And, of course, continually upgrading the deluxe 4-star tipi home away from home hunting base.

#134 Barb on 09.25.20 at 7:51 pm

BC Teachers have a Pro D day on Monday.
Really.

Sigh.

#135 Nonplused on 09.25.20 at 7:55 pm

#92 SoggyShorts on 09.25.20 at 5:43 pm

It’s simple math. Spend 2h of my time doing something I don’t enjoy, or work for ~40m doing something I’m great at and use the money to pay a pro to do that other job.

——————————

Two points:

Brag much?

And yes other people need jobs too.

#136 kappa on 09.25.20 at 7:56 pm

It puzzles me that the Canadian dollar has not dropped against the greenback – actually the opposite happened this year. The maple ballooning deficit did not translate into CAD depreciation (so far). Why !? It doesn’t make economic sense (to me). Will wait and see. It should be just matter of time, if history thought us anything…

#137 Drill Baby Drill on 09.25.20 at 8:16 pm

Watching the throne speech the other day with are so called PM and our so called queen’s representative highlighted to me just how far we have fallen as a country. Canada is no where near the economic power we used to be. This i find very sad and scary. We have people calling for a new green energy economy all the while crushing out oil industry which is our number one export money maker. Go figure. Oh and Garth which way is the fridge?

#138 True North on 09.25.20 at 8:20 pm

Just saw Jagmeet’s update on agreement reached with the Libs.

Very happy about this. Canada is opening the wallet and we bloody well need to get through the next year.

Trudeau or Jag get my vote.

#139 Bill C-2 on 09.25.20 at 8:23 pm

Let’s go baby!

#140 KNOW IT ALL on 09.25.20 at 8:32 pm

it will add $20 billion a year to the cost of carrying $1,000,000,000,000 in existing debt. That’s twenty billion less for health care transfers, child care, seniors or renovating 24 Sussex.
—————————————————————–

IF THATS THE CASE THEN CAN’T THEY JUST PRINT MORE MONEY LIKE THEY BEEN DOING??

#141 Drill Baby Drill on 09.25.20 at 8:33 pm

This current liberal and NDP government has just put the Canadian taxpayer in “Mega Hock” over this covid so called pandemic. How on earth can we expect to pay any of this massive borrowing back without increasing our investments into oil and gas development? Natural gas is a perfect intermediary fuel to be used to aid in our eventual transition into a so called “Green Economy”. In the mean time we have to pay an enormous amount of money back. The Liberals know that most Canadians are economic laggards so they can get away with this green energy codswallup.

#142 Sara on 09.25.20 at 8:33 pm

#114 crowdedelevatorfartz on 09.25.20 at 6:56 pm
@Sail Away re sara
“Reminds me more of Sail Away.
———-
Thank you! That is one handsome stud-muffin.”

+++
I do believe, unconsciously, she fantasizes about your butt.

—————————————————————–

Don’t worry Fartzy, he’s all yours! ;)

By the way, when unconscious, I’m pretty sure I don’t fantasize about anything.

#143 Drill Baby Drill on 09.25.20 at 8:34 pm

#137 True North
You are true codswallup. Please learn where Canada earns it’s income.

#144 SoggyShorts on 09.25.20 at 8:45 pm

#129 crowdedelevatorfartz on 09.25.20 at 7:39 pm
@#111 WetDiapers
“Typical Boomer, born on third base, thinks he hit a triple…”
+++

Let me guess.
****************************
c’mon fartz surely you see that my posting the 3rd base BS after the guy said he shared all house with 2 other families was sarcasm?

I, as a Gen X born to loving(but poor) immigrant parents , may have been born close to third base, but those same boomer parents of mine were not.

#145 45north on 09.25.20 at 8:48 pm

Here’s a recent controversial topic: if massive government and CB stimulus are causing danger by inflating real estate, why isn’t a puffed-up stock market just as bad?

There are three things that interact and play off one another. First is people see change all around them and wonder “what is real? what’s going to happen?” They are looking for security and real estate gives them a sense of security. Second is massive government stimulus and third is Central Bank stimulus. Both massive government stimulus and Central Bank stimulus act in the same way. They hide the consequences of the change and enable real estate to inflate.

The stock market isn’t anything like real estate. People don’t get a sense of security from the stock market. Let’s tell it like it is. People are pledging their lifetime income on real estate. Nothing anything like that is happening with real estate.

Maybe that’s what Bill Morneau saw before he quit. Puffed-up real estate has the potential to financially wipe out a generation. Maybe he saw that once real estate goes down, it’s a downward spiral. Maybe he saw that polar bears with an abundant food supply aren’t going to save him from the rage of a generation betrayed.

#146 45north on 09.25.20 at 8:49 pm

correction

The stock market isn’t anything like real estate. People don’t get a sense of security from the stock market. Let’s tell it like it is. People are pledging their lifetime income on real estate. Nothing anything like that is happening with the stock market.

#147 SoggyShorts on 09.25.20 at 8:58 pm

#134 Nonplused on 09.25.20 at 7:55 pm
#92 SoggyShorts on 09.25.20 at 5:43 pm

It’s simple math. Spend 2h of my time doing something I don’t enjoy, or work for ~40m doing something I’m great at and use the money to pay a pro to do that other job.
——————————
Two points:
Brag much?
And yes other people need jobs too.

*************************
It wasn’t meant to come off as a brag. Surely most people get paid more per hour to do what they are good at?

Lemme rephrase the example:
I have no skills at mechanic stuff so a 1h job for a pro would take me at least 2h
So, unless a mechanic charges 200% of my wage I’m better off doing my job than I am attempting his.

E.G. I make $11/h mechanic costs $10/h
♦Doing the job myself costs me $0 but 2h of my time
♦Letting the pro do it while I go to work gains me $12 (2h of my time minus 1h his time)

Clearly, the second option is better since I’m out 2h either way but in letting the pro do it I’m $12 up, and that’s before you account for the fact that I have no mechanics tools and live in an apartment.

Yes, it may have been a little brag that I make a tiny bit more hourly than a mechanic, but my skills at my job are at the expense of having not learned other skills (like mechanic stuff)

#148 IM in C on 09.25.20 at 9:02 pm

Garth. Have decided to forego real estate and invest in the stock market. Like the concept o high dividend paying preferred stocks, but I have noticed that preferred stocks are more complex than common stock. Where can I go to get a good understanding of the intricacies of preferred stocks

#149 Drinking on 09.25.20 at 9:25 pm

#137 True North

Normally I would be pissed and the young one’s should be pissed for this will be a terrible burden on their future!

The way I see it is this Jag guy bought himself a golden parachute knowing that his party will never have this much power again and now we can focus on Firing up the “WE ” inquiry!
Purchased an extra pond of popcorn for this winter while isolated; this is going to be good!

#150 Ronaldo on 09.25.20 at 9:28 pm

#19 Millennial 1%er on 09.25.20 at 12:53 pm
I mean what am I supposed to do? Not buy a house? Raise children in a 1 bedroom apartment?

———————————————————-
Definately, absolutely, without a doubt, a troll.

#151 IHCTD9 on 09.25.20 at 9:48 pm

#48 Ace Goodheart on 09.25.20 at 2:51 pm
Re# 29 IHCTD9:

And the old diesel trucks. It’s a paradise here. The most common are the bin loaders with the cable pullers. These things are ancient.
———

Well I’ll be damned, chalk one up for living in a big city! I could handle hearing an old 6-71 Detroit going through the gears once and a while. Nothing sounds quite like those smoky old two strokes.

I enjoy doing yard work, or maybe I just like having enough yard to have an excuse to buy a 1300 lb lawn mower. I used to like fast cars and motorcycles, now it’s bulldozers and lawnmowers. Pathetic.

I suppose in a few years I may be combing Kijiji looking for a good deal on a tugboat…

#152 Fabio on 09.25.20 at 9:57 pm

Clearly Alberta didn’t like the throne speech.

https://youtu.be/evXdtkM61nU

#153 Don Guillermo on 09.25.20 at 10:04 pm

#112 SoggyShorts on 09.25.20 at 6:51 pm
#90 Jake on 09.25.20 at 5:43 pm
#19 Millennial 1%er

My parents fled a war torn Europe to start a new life in Canada. My mother had to sell her wedding ring to help pay for the boat across the pond. Landed at Pier 21 in Halifax with a couple of suitcases and no money and put on a train for Toronto. I grew up in the 60s in a 2 storey 1930s home by sharing the basement and upstairs with 2 other families. We were 4 people sharing the main floor with the dining room converted to a bedroom and no main floor washroom (had to share the basement bath). We lived like that for 8 years until my parents could buy the house. Where there is a will there is a way.
******************************
Typical Boomer, born on third base, thinks he hit a triple…

^^^^^^^^^^^^^^^^^^^^^

That’s funny! The Mills were actually born on 3rd base. Then when (infrequently) someone gets a hit, they run the wrong way.

#154 Soviet Capitalist on 09.25.20 at 10:31 pm

We need debate? Yes, but between who? The majority of the population consciously got itself into debt beyond their means because they didn’t want to be the only responsible suckers paying everyone’s bills. They want more government to take money from whoever they can. There is also a minority of losing savers who’d be more than happy to debate, but who’s going to listen to they plea when the majority just wants to take their savings and re-distribute amongs the crowd.

#155 Where did you come from Covid? on 09.25.20 at 10:32 pm

Australia calls to find out the origins of Covid-19, and what happens?

China has imposed trade sanctions on Australia. It suspended some beef imports on a technicality and effectively blocked a A$439 million ($308.5 million) trade in barley by slapping tariffs of 80.5% on the Australian import. China has also launched an anti-dumping probe into Australian wine imports.

#156 will on 09.25.20 at 10:35 pm

i’ve started only reading the comments that respond to the blog post by Garth. i skip comments that are responses to other comments

#157 Ponzius Pilatus on 09.25.20 at 10:38 pm

#136 kappa on 09.25.20 at 7:56 pm
It puzzles me that the Canadian dollar has not dropped against the greenback – actually the opposite happened this year. The maple ballooning deficit did not translate into CAD depreciation (so far). Why !? It doesn’t make economic sense (to me). Will wait and see. It should be just matter of time, if history thought us anything…
————-
Sorry, to say.
But you’re a typical Canadian.
Always playing the underdog. The reality is that Canada’s standing in the world is better than the States’.
Just look at their Covid stats.
We’ve got nothing to feel inferior about.

#158 Nonplused on 09.25.20 at 10:49 pm

#147 SoggyShorts on 09.25.20 at 8:58 pm
#134 Nonplused on 09.25.20 at 7:55 pm
#92 SoggyShorts on 09.25.20 at 5:43 pm

Fair points I’m just saying don’t brag. I hire plumbers and auto mechanics myself but I never point out our relative wages. A wise man once said to me that we all need our jobs. So I got no problem when you hire someone. But please understand that there are a lot of people hiring plumbers that make less than the plumber does. I’m glad for you that you have a good income, but be the grey man.

#159 Tanya Tate on 09.25.20 at 10:52 pm

I don’t know why nobody is talking about this but the Canadian dollar will be $0.62 to the U.S. dollar in the next 6 to 12 months. Bend over Canadians just like under the Jean Chretien, Paul Martin Liberals back in the 2000’s.

Canada pay $1.61+currency exchange fee=$1.635 for 1 U.S. dollar, suckers.

#160 Figmund Sreud on 09.25.20 at 11:02 pm

ICYMI-2: This is about “the human superorganism functioning as an energy-hungry, blind, purposeless amoeba”. It’s worth one’s while to browse it through and perhaps watch a vid? Here is a link:

The Great Simplification coming next decade with 30% drop in capitalist economies
https://citizenactionmonitor.wordpress.com/2019/06/10/the-great-simplification-coming-next-decade-with-30-drop-in-capitalist-economies-says-dr-nate-hagens/

The main claim within above is that “The Great Simplification”;will occur when the credit-supported part of the economy is removed.

Best,

F.S. – Calgary, Alberta.

#161 Damifino on 09.25.20 at 11:04 pm

So Justin keeps a few crumbs off the table so Jagmeet can look effective by insisting upon them for NDP support.

The entire cynical charade was orchestrated ahead of time by our arrogant PM in the belief a majority of Canadians are profoundly stupid. Was he correct?

Some days I hate politics.

#162 Doug in London on 09.25.20 at 11:11 pm

@not 1st, post #41:
Would that be uranium? There’s plenty of it in Saskatchewan.

#163 Long-Time Lurker on 09.25.20 at 11:20 pm

>So, drinking alcohol was discouraged for pregnant women because of fetal-alcohol-syndrome but somehow marijuana was okay? This one’s on you, Prime Minister Zoolander.

Original Investigation
September 23, 2020

Associations Between Prenatal Cannabis Exposure and Childhood Outcomes
Results From the ABCD Study

Sarah E. Paul, BA1; Alexander S. Hatoum, PhD2; Jeremy D. Fine, BS1; et alEmma C. Johnson, PhD2; Isabella Hansen, BA1; Nicole R. Karcher, PhD1; Allison L. Moreau, MA1; Erin Bondy, MA1; Yueyue Qu1; Ebony B. Carter, MD3; Cynthia E. Rogers, MD2; Arpana Agrawal, PhD2; Deanna M. Barch, PhD1,2; Ryan Bogdan, PhD1

JAMA Psychiatry. Published online September 23, 2020. doi:10.1001/jamapsychiatry.2020.2902

Findings: This cross-sectional analysis of 11 489 children (655 exposed to cannabis prenatally) found that prenatal cannabis exposure after maternal knowledge of pregnancy was associated with greater psychopathology during middle childhood, even after accounting for potentially confounding variables.

Meaning: Prenatal cannabis exposure may increase risk for psychopathology; consistent with recent recommendations by the Surgeon General of the United States, these data suggest that cannabis use during pregnancy should be discouraged by clinicians and dispensaries….

https://jamanetwork.com/journals/jamapsychiatry/fullarticle/2770964?guestAccessKey=6f5b980c-8226-4202-8b98-49aaa4412145&utm_source=For_The_Media&utm_medium=referral&utm_campaign=ftm_links&utm_content=tfl&utm_term=092320

#164 GRG on 09.25.20 at 11:20 pm

#11 WTF on 09.25.20 at 12:38 pm
#196 Yesterday “Poilievre is just a career whiner.”

Respectfully Chris.

He is the finance critic. That’s his position on the opposition bench. It is not his responsibility to provide alternatives.

It is however the Governments responsibility to spend tax payers remittances in a responsible manner. They Aren’t, ergo criticism.

PM Breathless and his minions own this debacle. All of it….

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

Would not surprise if our sanctimonious narcissist PM tries to blame it all on Harper, LOL.

#165 Ace Goodheart on 09.25.20 at 11:28 pm

Canada is headed into a currency crisis.

Our central bank, to keep our currency from crashing, will at some point have to find buyers for all of the government debt that it has bought up (I believe almost four hundred billion Canadian dollars at this point, soon to be six hundred billion by the end of 2020, and probably another four or five hundred billion by the end of 2021).

Roughly a trillion dollars in Canadian government debt will have to find a home in someone’s portfolio by the end of 2021.

Otherwise, we are going to experience a currency crisis.

The way out of such a crisis, as the IMF has advised many countries, many times (including Mexico, Argentina, Greece, Italy to name a few) is to just let your currency be devalued and then start fresh with a devalued Lira, or Drachma, or Peso or whatever it is you are using.

Often, the best way to put things to an end is to introduce a “new” currency. For example, Canada could introduce the “new” dollar, which would be exchanged for a hundred of our existing dollars (so $100.00 CDN = $1.00 new Dollar CDN). Taiwan did this with quite a bit of success when their currency crashed.

We are headed into this situation.

The good thing about this is, houses are already for the most part priced accurately for the new reality of Canadian currency.

When interest rates go back up to a normal amount, a house priced in “new CDN dollars” will be roughly correctly priced to be affordable to a middle class income earner, earning “new dollars”.

Financial assets also will probably not get hit that hard.

The biggies to worry about will be GICs, savings accounts, bonds and preferred shares. Par value will be a killer ($25.00 old CDN dollars will be like 25 cents in the new dollar).

We have pretty much guaranteed ourselves this situation, because we now in effect have a Federal coalition government, which involves a minority Liberal government, that should already have been defeated in a confidence vote, buying time by giving support to country killing NDP social programs, which in any other situation would be recognized as very destructive to Federal finances.

Instead, the taps are wide open, the money is flying out the door, billions per day now, almost 400 billion since April (there are only 365 days in a year, we are borrowing over a billion a day right now), and our government is just purchasing time in office, by bankrupting our country.

There is no way that the Liberals would win an election on the promise to spend 400 billion dollars of borrowed money, to give it away, every six months.

We are in effect trapped by a coalition government that no one voted for and no one wants.

It would appear the best way to deal with this would be to read your mortgage contracts, and see if there is a provision for currency adjustment in the event that a new currency is introduced during a currency crisis.

You would be surprised to find that at least one of the big banks’ million page mortgage agreement actually has something like this in it (no one ever reads these agreements).

#166 Ace Goodheart on 09.25.20 at 11:39 pm

The other interesting thing about currency crisis, is that it often happens to countries that the USA, for some reason or another, “flips off”.

The USA has been “flipping off” Canada for years now, as Trump apparently hates us.

I noticed this and noticed the danger of it. When they did it to Mexico, their currency crashed.

Same happened to South Korea (10,000 won is like $8.00 US).

Taiwan – ditto.

Most times a country gets on the wrong side of the USA, within at the most ten years, they experience runaway government borrowing, followed by a hard crash in their currency.

We are at the runaway government borrowing stage.

Things look bad for us.

The Canadian dollar is not a global reserve currency. For perspective, have you ever heard of the Australian Dollar? No? Me neither. They have one though.

Most of the world has never heard of our dollar, and if asked, most people who do not live in Canada, including many Americans, could not say what currency we use up here.

#167 Mr. Money Printer on 09.26.20 at 12:00 am

All money is debt…Debt is just money we owe to ourselves, its not important. If the bank of Canada prints $100 billion and lends it to Justin , and he has to pay 1% interest on the money, so what? He pays $1 billion in interest to the BOC…and who owns the BOC? The finance department, so the interest just gets returned to the govt. Why are you so obsessed about government debt all the time.. Maybe you think, well this will cause inflation!! That would only happen if there was no slack in the economy, for example if factories were running at 100% capacity and unemployment was 3%, then we would get inflation as that new money pushes up prices to lower demand until more capacity is added. Maybe you think all this money printing will cause the dollar to crash and that will cause inflation!! That would only happen if Canada were the only country doing it…Since everyone is printing money at the same time it cancels out, dollar stable. The old saying we are the cleanest dirtiest shirt in the laundry.

#168 Long-Time Lurker on 09.26.20 at 12:10 am

Women are using marijuana to cope with pregnancy symptoms like nausea even though the FDA warns against it

Julia Naftulin Oct 29, 2019, 10:15 AM

On October 16, the US Food and Drug Administration issued a statement about the dangers of using CBD and THC, two of the main compounds found in cannabis, while pregnant or breastfeeding.

But some women are still choosing to self-medicate with cannabis during pregnancy to cope with symptoms like nausea.

This isn’t the only population that’s turned to the substance to help with queasiness. Some people with cancer use it to decrease chemotherapy-induced nausea and vomiting.

Research has found that marijuana use during pregnancy could lead to lower birth weights and brain changes in babies.

On October 16, the U.S. Food and Drug Administration issued a statement about the dangers of using CBD and THC, two of the main compounds found in cannabis, while pregnant or breastfeeding.

“FDA strongly advises against the use of cannabidiol (CBD), tetrahydrocannabinol (THC), and marijuana in any form during pregnancy or while breastfeeding,” the agency said in its statement.

Still, some women are choosing to self-medicate with cannabis during and after pregnancy to cope with symptoms like nausea, pain, and postpartum depression sans prescription.

While the substance has been shown to help such symptoms in other populations, like cancer patients who have chemotherapy-induced nausea and vomiting, using it during pregnancy and breastfeeding comes with risks and a lot of unknowns….

https://www.insider.com/fda-dont-use-marijuana-during-pregnancy-many-moms-do-2019-10

#169 Tom from Mississauga on 09.26.20 at 12:30 am

Kijiji is awash with vacant apartments in Mississauga

#170 David Greene on 09.26.20 at 12:49 am

In Ontario, Doug Ford recently announced that basic personal finance will be taught in…I think it was starting in junior high. Maybe secondary school. Can’t remember exactly. Man, is this a good idea.

Overheardyou on 09.25.20 at 2:19 pm

Is there a chance that Canadian Millennials, never having any real hardship or economic fallout through their adult lives don’t understand the relationship debt plays and the dangers?

Perhaps our education systems really needs to add a personal finance 101 course mandatory or we could just let them learn the hard way.

#171 PetertheSeparatistfromCalgary on 09.26.20 at 12:50 am

One point that Garth did not include in his excellent post. The average Canadian is getting older and will require more health care. This makes the huge government deficits even more scary.

#172 NSNG on 09.26.20 at 1:05 am

#104 yvr_lurker on 09.25.20 at 6:10 pm

Do you prefer “wacky times” Wilkinson

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

If you think I was endorsing the Liberals in my writeup then you clearly didn’t read or comprehend a word I said.

Lefties, so easily triggered, so defensive.

I agree, the NDP have made few errors. If they had held out for another year, a majority would have been a cakewalk for them. The few things they have done wrong are some big errors. Site C, which is a union payoff and rumored to be turning into an engineering boondoggle (this is possibly why they are calling the election early). ICBC fix, which is preserving all those union jobs while not holding them accountable via competition and thus depriving the public of fair choice and reasonable insurance rates. Wasting our tax dollars on pointless court battles to oppose pipelines in order to defend the climate change scam.

These are the things cropping up now. Are they enough to get them fired? I’d say no. Are they enough to replace them with the liberals who have demonstrated they have not learned a thing? Again, I’d say no. This is why I stated that pushing them deeper into minority status will keep their humility up before the voters and give them enough of a rap on the nose so as to continue to work for British Columbians and not their own self interests.

#173 crowdedelevatorfartz on 09.26.20 at 8:23 am

@#156 won’t
“i skip comments that are responses to other comments.
++++
I comment on comments that respond to other comments.
Care to comment?

#174 crowdedelevatorfartz on 09.26.20 at 8:30 am

@#142 sara

Im the first dog on the left……my left…..yes the brown one….

#175 crowdedelevatorfartz on 09.26.20 at 8:42 am

….and on the 6pm News last night we were informed in BC that the Cullen Commission on money laundering in BC casinos and Real Estate will not release preliminary findings until AFTER the provincial election.

The commission was going to release its findings one week before the Oct 24th election but has decided to delay the release until after Oct24 so the voting public “will not be affected by the resulting information”.

The former Liberal govt of Christy Clark breathed a collective sigh of relief.

We also heard the news that 4 Liberal MLA’s and 6NDP MLA’s are not seeking re-election.

MLA’s that are stepping down will receive, on average, an $80,000 PER YEAR Pension……….
Not a bad gig for what most will have spent perhaps 10-12 years doing.
$80,000 a year pension for 10 years work……
Our economy and govt is beginning to sound like Greece…. or should I say “Grease”

It should be noted that for every dollar an MLA contributes to their pension plan…… the taxpayer contributes 4 dollars……

a dollar well spent if you are a money gobbling hog at the trough.

#176 Phylis on 09.26.20 at 8:48 am

#119 crowdedelevatorfartz on 09.25.20 at 7:03 pm Here they have belly dancing on the agenda. Not kidding. The work hard to make that fit in the professional category must have been the justification of a qualifying development.
Shake it till you make it.

#177 Sail Away on 09.26.20 at 8:52 am

#156 will on 09.25.20 at 10:35 pm

i’ve started only reading the comments that respond to the blog post by Garth. i skip comments that are responses to other comments

—————

So you just made a comment you wouldn’t read?

#178 crossbordershopper on 09.26.20 at 9:21 am

i dont understand, i was talking to a friend and said we were moving and wanted his help to move a few items,
he said wow expensive, two mortgages to carry i hope your house sells etc. i didnt understand what he ment , two mortgages, you know on the house your sellihng not sold yet but you risked and bought another one it s going to be tight for a while till it sells.
i kinda got what he was saying then, but i couldnt tell him that there are no mortgages on any houses, since I never had a mortgage before because banks dont lend me money, i pay cash, the only way i have always.
i never did understand this loveaffair with debt, kinda bad for me i think its jealousy i think because banks never lend but others get crazy leverage.
i was always a little odd i guess, this is just another example i told myself.
dont tell people your finances is my advice. what goes through your head as you work every day and have no money at the end of the period. every day, and still you owe money to people, man being beholden to banks and stuff all there life, how do they feel, i guess there ok with it. IDK.
i get pissed off when i get a reminder letter from the utility company for payment, i know its due on the 30th, why are they telling me this again , i got the bill it will be paid on the 30th as it always has been, covid this covid that hard times, reaching out to people letter, ok, i guess it could be year in 100 years that the leafs win the cup but i still owe my hydro bill by the 30th, then interst will start, i dont pay interest, one penny , i dont care what the rate is just lke that .99% new car deals, like i would ever buy a new car, ya when the leafs win the cup. i was called cheap, well ive been called worse, i guess, i am not cheap, i pay cash for everything, my dad is 86 and has never had a credit card, or mortgage or line or credit or anything,
im right behind him.
my dad doesnt know any different, but for me, i dont want to be beholden to anyone, do i qualify, am i good enough, i have inquired about debt many times, and with no record and self employeed, they all said go to the second market, and i just stopped there.

#179 Dharma Bum on 09.26.20 at 9:43 am

#67 MF

Who the hell are you to speak for our entire generation?
——————————————————————–

Now, now.

You said it yourself: IGNORE the trolls.

Easier said than done, it seems.

#180 Stratovarious on 09.26.20 at 9:53 am

Respectfully, I disagree with your comment that RE and Equities are wildly different because the former involves huge leverage, suggesting that debt in no way is responsible for the off-the-chart valuations in stocks. When Apple issues a bond, the proceeds of which are used to buy back Apple stock, there is leverage involved. When the Federal Reserve buys that bond, there is leverage involved. And when a newly minted retail trader buys stock on margin, leverage is involved. Indeed, if debt were not so easy to obtain, both RE and Stocks would crater.

In the last couple of weeks, the Federal Reserve has rapidly scaled back purchase of corporate bonds, which perhaps may help explain why the market is beginning to struggle.

You’re a confused person. The post was about the use of debt to buy personal assets. People leverage real estate to the hilt. They buy financial securities (almost always) with existing wealth. No comparison. – Garth

#181 Dharma Bum on 09.26.20 at 9:58 am

ABOUT THE PICTURE:

Watch out where the Huskies go and don’t you eat that yellow snow! – Frank Zappa
——————————————————————–

I might be moving to Alberta soon, just to raise me up a crop of dental floss. Raisin’ it up. Waxin’ it down.

#182 crowdedelevatorfartz on 09.26.20 at 9:59 am

@#176 Phylis
“Shake it till you make it.”

++++
aHa hahahaha

“Professional Development”

Belly dancing classes…. you gotta love it.
The arrogance of the teacher’s unions is mind boggling.

Apparently ….
Teaching is the second oldest profession.

#183 not 1st on 09.26.20 at 10:01 am

Right now the BoC is buying our treasuries to goose cheap lending for Justin. But that cant last forever. They are not the US fed reserve by a long shot.

So after you have added $500B in debt and now want to unwind that balance sheet that means finding foreign lenders because nobody in canada will be buyin Canadian bonds anymore.

So you are asking someone to take on our debt in a country where we have torpedoed our main industries and chased off investment in favor of green scams, intersectional identity and virtue signaling as our main exports.

Does anyone have any idea whats sort of a premium lenders would need to do that? Yeah it isnt going to be nice 2% interest rates. You will see something back in the range of 7% with a secular stagflation recession behind it.

Seriously who are the zombies that vote trudeau and singh? Did you fail grade 2 math?

#184 Jeff on 09.26.20 at 10:03 am

Ok Garth, here’s a comment for your bathroom stall.

How about we go after the top 20 billionaires in this country who hide their earnings in off-shore tax havens (i.e., Weston, Irvings, McCains, Bronfmans, etc.)?

I know, they would throw a tantrum and threaten to leave the country. Consider, without our country’s infrastructure (taxpayer funded) and Canadian workers, they would not make a cent in earnings since products and services would not be produced. I understand that hundreds of billions could be paid out in taxes currently; unless of course you covet those golden geese?

Because someone has great wealth does not mean they do not pay great taxes. More importantly, this wealth is not sitting in personal assets offshore but within Canadian businesses that employ vast numbers of people. Grow up, and stop listening to Jag. – Garth

#185 Jeff on 09.26.20 at 10:12 am

Because someone has great wealth does not mean they do not pay great taxes. More importantly, this wealth is not sitting in personal assets offshore but within Canadian businesses that employ vast numbers of people. Grow up, and stop listening to Jag. – Garth

______

clever comeback, the fact remains that the workers produce goods and services for these folks, without them they make nothing; nice attempt at an ad hominem attack though

Exceptional people start, build and nurture companies to ultimately be rewarded for the talents, abilities and ingenuity they possess. Jealous people bite their ankles. – Garth

#186 Jeff on 09.26.20 at 10:22 am

….and people who cannot focus on arguments resort to ideology

have a good day Garth, and by the way, I do appreciate your personal finance advice, it is solid, but I differ on your take on the wealthy

I will agree to disagree, all the best

Jeff

#187 LP on 09.26.20 at 11:47 am

#120 Flop… on 09.25.20 at 7:03 pm

Still get traumatized every morning watching my poop disappear in the opposite direction…
******************************

Simple solution to your trauma…close the lid before flushing, which you should be doing anyway. Much more sanitary!

F73ON

#188 WAKEUP on 09.26.20 at 12:49 pm

Covid did?
You speak of it in past tense.
It’s far from being behind us.
Second waves is here and all the insanity that accompanies it will continue.
We are in big trouble.

#189 Lorne on 09.26.20 at 2:15 pm

#170 David Greene on 09.26.20 at 12:49 am
In Ontario, Doug Ford recently announced that basic personal finance will be taught in…I think it was starting in junior high. Maybe secondary school. Can’t remember exactly. Man, is this a good idea.

Overheardyou on 09.25.20 at 2:19 pm

Is there a chance that Canadian Millennials, never having any real hardship or economic fallout through their adult lives don’t understand the relationship debt plays and the dangers?

Perhaps our education systems really needs to add a personal finance 101 course mandatory or we could just let them learn the hard way.
…….
And what should be deleted to find time in the curriculum for this course? It is not as simple as just saying, let’s add this!

#190 zoey on 09.26.20 at 3:29 pm

Agree its dilusion .. but if rates stay at near zero the dilusion will continue and we can thank the BoC.

#191 Mark on 09.26.20 at 7:01 pm

It’s getting to the point where there is a whole lot of people that have nothing to lose.

It’s going to get ugly.

#192 westcdn on 09.27.20 at 2:08 pm

It was kind of funny – I hear my wife yelling to get there. I find her and my oldest daughter standing on the couch pointing to, a cat, Mable who brought in a live bird. Mable was confused – I released the bird and it still had life. I had to catch it and release it outside.

Such is the life of an ordinary guy.