When the party ends

Aren’t you tired of Millennials? Whiskers, tats, bicycles, house lust, skinny pants. Yeah, me too. So let’s talk about old snort issues for a few minutes. Like how to get money out of your investments without being nuked by the virus or taxes.

Joan, in BC, throws us this question.

We have a financial advisor and a friend who is a retired financial advisor, each giving us different advice. We were wondering if you could help us decide the best action to take. I’m 67 and retired. My husband is 66, still working, and intends to do so until he’s 71. We started receiving our OAS and CPP pensions at 65 and receive a federal government pension as well. We have no mortgage and no debt and our lifestyle is pretty frugal. We have approx. $327,000 invested, TFSA’s and spousal RRSP’s mostly in Spousal, since my income is much lower.

Our retired advisor friend thinks that with the instability of the markets, Covid, etc. we should seriously consider converting our RRSP’s into either a RRIF or an Annuity now, instead of waiting until age 71. Our current advisor disagrees, since we are well balanced and diversified and weathered the drops in March pretty well. Also, he said Annuities are paying lousy returns right now. We feel since a RRIF is subject to market fluctuations, what’s the point and also we don’t want to add to our income, since it would push us into a higher tax bracket. What do you think Garth?

Easy, you need new friends. Your advisor’s correct.

Now let’s make sure everyone knows the difference between an RRSP and a RRIF. Plus the tax changes that came down recently. During your working years contributing to a retirement savings plan nets you a tax break since the annual contribution can be deducted from taxable income. Cool. Do it. RRSPs are great tax-shifting tools and can also be used when you lose a working gig, get pregnant, buy a house, go back to uni or want to take a year off to find yourself (good luck).

RRSPs (like tax-free savings accounts) are not products or things, but just accounts into which you can dump different investments. Growth is tax-free, so it makes sense to hold things that will swell in value (like equity ETFs) as opposed to brain-dead, interest-earning duds (like GICs).

But the RRSP party ends at age 71, when these holdings must be converted into accounts (called RRIFs) that pay income. And, yup, it’s taxable. Now the good news is, thanks to Covid, the feds have lowered the minimum amount a RIF must pay out annually, by a whopping 25%. So now at age 72 only 3.96% of what a RIIF contains must be converted into taxable income (this rises to 15% by age 94, should you be so wirey). That means almost all of the RRIF investments can continue to grow free of tax for a long, long time.

Okay, back to Joan. So, yes, an RRSP can be converted to a RRIF at an earlier age, if you want. And once that happens, income must flow (through a slightly different formula) and be taxed. But why do this? There’s no rule preventing a person from taking RRSP money if they need income.

Her retired advisor friend should stay retired since converting a retirement savings plan into a retirement income fund doesn’t reduce risk one iota. It just means taxes are payable on withdrawals that (in this case) aren’t needed. As for an annuity – which locks the money up in return for a guaranteed monthly stipend – the worst time possible to get one would be now. Annuity payouts shrink along with interest rates, which these days are in the ditch.

Advisor, 1. Friend, 0.

$     $     $

Well, here’s an interesting chart. HouseSigma figures Toronto condos have never dived this deeply, or quickly, into a buyer’s market.

Things grow darker weekly for all the amateur landlords and specuvestors who snapped up mini-units of 500 square feet or less over the last few years. The vacancy rate is going up, rents are going down, condo prices are falling ten grand a week, listings are piling up (200% more in a year) and both tenants and purchasers are scarce.

Word is that some mortgage brokers are about to stop lending any funds against these things. Meanwhile thousands more units are coming to market as existing projects are completed. There are oodles and oodles and oodles of assignment condos available as investors bail. And look at the latest Covid news – as of this week  no more open houses in Toronto or most of the GTA, the condo heartland of the nation.

Well, come winter, the growing second virus wave, a lot more mortgage defaults and risk-averse lenders there’s every reason to think the glut will worsen with prices caught in a vice. It will be a painful lesson for investors who thought losses were impossible and there’d always be some kid willing to shell out $2,500 a month to sleep in their closet.

Of course, the city will come back. The pandemic will end. Downtowns will seduce, entice and intoxicate once more. So have the chequebook ready.

103 comments ↓

#1 Chester in fall on 10.20.20 at 3:24 pm

Off topic
But nevertheless a good read.

https://www.canadaland.com/we-charity-in-kenya/

#2 T on 10.20.20 at 3:25 pm

Is there a certain metric that should be used to identify the correct moment to buy a Toronto condo during this downswing?

#3 Non Fiction on 10.20.20 at 3:29 pm

The team of Justin, Jagmeet & Chrystia should let us hark back on another woefully unprepared and unskilled team – Charles, Hal & Mercedes.

#4 Linda on 10.20.20 at 3:38 pm

Garth, about that minimum withdrawal percentage one must start to take from one’s RRSP. Is the 3.96% expected to be a permanent change or is it only a temporary adjustment slated to end by a certain date? I had read some columns mentioning that the Feds were going to adjust matters to address the increased longevity issue, but what I am not sure of is whether the new minimum withdrawal amount will remain.

We’ll know when they tell us. – Garth

#5 SeeB on 10.20.20 at 3:42 pm

#18 SeeB on 10.19.20 at 2:38 pm
Still giving air to the conspiracy theorists here, I see.

—————————————————————–

Now, I am going to probably get a response from Garth here. Yes, all deaths are tragic, and it would have been nice if people had reacted better to the situation. But in a pandemic not all deaths can be avoided. But it should work like the airline industry or even car manufacturing. Possible safety measures are always compared to the cost vs. loss of life. You know how we could assure nobody ever died in a plane accident again? Ban air travel. Car accidents are a major cause of death, especially in the 18-30 crowd. Ban cars. Oops a subway car derailed and killed 20 people. Ban trains. It’s just not worth it and Joe Black shows up one day regardless.

+—————————————————————

Ok, I kind of feel like you are agreeing with me. We need to reopen and take NECESSARY risks, but we should do everything we can to mitigate as much as reasonable.

A large segment of the population can’t seem to be trusted to act responsible with regards to themselves or other human beings by making mask wearing a political stance.

Your car and train analogy are cute but further prove my point. Cars come equipped with seatbelts to REDUCE the CHANCE of injury or death, not prevent it.

Subways come equipped with emergency breaks, circuit breakers, emergency exits, etc… not to prevent a derailment, but to REDUCE the CHANCE of injury and death.

Mask wearing helps to REDUCE the CHANCE of infecting others, and even offer a small degree of protection for yourself (like 30% for surgical masks last time I checked?)

Anyway, yes full open, and yes to following guidelines. Unfortunately, wanting to observe distance and masking guidelines makes me a communist somehow, thus, we are stuck with ham-fisted, lockdown solutions.

#6 crowdedelevatorfartz on 10.20.20 at 3:43 pm

@#166 Faron
“I know you hate the doobies, but do you support safe injection sites and legalized and regulated supply? If not, why not? What are your solutions to this crisis aside from crowing about it?”

++++
Safe injection sites dont seem to have stopped the deaths. Record death numbers month after month.
The crime rate for addicts needing more money for drugs is climbing.
Most (85% of the OD’s are men) dying alone at home.
Perhaps building prisons and psychiatric/enforced drug rehab Hospitals instead of hiring more cops …..

The touchy feely, coddling, politically correct Canadian criminal system is an international joke.
When was the last time there was a new prison built in Canada to house more prisoners?
Not a prison to replace an older prison.
A new prison to hold …. you know……bad people.

https://www.citynews1130.com/2020/10/19/aggravated-assault-transit-police-shooting-2019/

Hell prisoners even get to jump the medical wait list line for any injuries that occur during encarceration….
Whats next? CERB in jail ?

#7 Catalyst on 10.20.20 at 3:46 pm

Downtown condo’s are in for a rough ride 100% but I don’t agree with the assessment that prices are declining 10k a week.

Some anecdotal condos picked from housesigma:

Unit 1506 – 218 Queens Quay W:
2020-10-16:Sold $605k
2009-09-18:Sold $313k

Unit 1404 – 210 Simcoe St:
2020-10-16: Sold 735k
2016-07-28: Sold 551k

Unit 1033 – 54 East Liberty:
2020-10-14: Sold 690k
2019-02-06: Sold 525k

There isn’t much moving which will likely drive down prices but I would love to see your data claiming prices are falling.

#8 crowdedelevatorfartz on 10.20.20 at 3:56 pm

Is Trudeau going to call the oppositions bluff and get a Nonconfidence vote?

https://ca.reuters.com/article/topNews/idCAKBN2752L3

Election before Christmas ?
Or next year when the economy is tanking?
My bets are before Christmas……..

#9 GBiddy on 10.20.20 at 4:03 pm

Hopefully by now people see the obvious: these tiny little 300-500sqft units were designed to be future shelter space for homeless, and/or isolation housing for the ‘quarantined’.

No human would choose to reside in a shoe-box voluntarily…

This was good planning by our masters. The fools who bought will get some kind of bail out from the various levels of government, and the homeless shall be housed.

Wait for it, watch it happen. Something should be announced in a week or less.

#10 Don Guillermo on 10.20.20 at 4:19 pm

#167 Masks really do make some people more attractive

I’m gay and a centre-lefty, as are many of the people I follow on Twitter. Many Americans, especially left-leaning women, are voting for Trump because of the Dems adoption of Critical Race theory, gender ID theory, and queer theory. These regressive theories have achieved institutional capture of schools, government services, sporting orgs, etc.

Do you put your pronouns in your email signature and Twitter bio? If not, you’re a bigot and transphobe. That’s where the left is going, and why they’re bleeding out centrist support. The right wing’s stubborn denial of AGW is no more ludricous than the left wing notions that men can magically become women, or that all white people are inherently racist.

The new left is a totalitarian nightmare, and will eventually precipitate a hard right swing, but only after they’ve managed to cancel and consume their former supporters.

***************************************
Ever so often I feel like walking away from this comment section and spending time more productively. Then I sneak back for another look and a comment like this pops up. Brilliant!

#11 David Pylyp on 10.20.20 at 4:23 pm

Don’t forget. Flipping prior to closing leaves you open for HST claim. You cannot sign off as end user.

Interim Occupancy issues, phantom Mortgage and more.

David Pylyp
Toronto

#12 Ponzius Pilatus on 10.20.20 at 4:30 pm

#6 crowdedelevatorfartz on 10.20.20 at 3:43 pm
@#166 Faron
“I know you hate the doobies, but do you support safe injection sites and legalized and regulated supply? If not, why not? What are your solutions to this crisis aside from crowing about it?”

++++
Safe injection sites dont seem to have stopped the deaths. Record death numbers month after month.
The crime rate for addicts needing more money for drugs is climbing.
Most (85% of the OD’s are men) dying alone at home.
Perhaps building prisons and psychiatric/enforced drug rehab Hospitals instead of hiring more cops …..

The touchy feely, coddling, politically correct Canadian criminal system is an international joke.
———————-
Faron, why do you bother?
A line by John Prine RIP comes to mind:
“A question ain’t really a question,
if you know the answer to”
CEF is in construction. The majority of fentanyl deadly overdoses are by male construction workers.
So he probably knows a few.
As for hating doobies, by his own account he used to be the king of doobies.
Nothing wrong with it, though.

#13 Penny Henny on 10.20.20 at 4:34 pm

What are your thoughts on Vanguard Retirement Income fund
‘VRIF’

It’s just a fund of funds hoping for a 4% distribution. You can do better. – Garth

#14 Faron on 10.20.20 at 4:35 pm

#6 crowdedelevatorfartz on 10.20.20 at 3:43 pm

@#166 Faron

A new prison to hold …. you know……bad people.

Are addicts bad people? Sure, no one becomes addicted to heroin without making a choice at some point to use it. Likewise Cocaine or any substance not slipped into their drink. But, not everyone who tries those drugs becomes addicted. And even those who were addicted can lose interest if their situations change. See the famous example of Vietnam War soldier heroin addicts. Are those who become addicted bad people or maybe predisposed to addiction through vagaries of crappy life histories or present circumstance? Should they be punished for that? I think no, obviously.

Safe supply will help with the death rate if only a little. It’s certainly not a silver bullet. Under COVID and reduced border traffic, fentanyl lacing is increasing because it’s cheap and easy to hide because of its potency and thus smaller trafficking volumes. But any supply side solution or even enhanced treatment solutions will only be band aids. The question is what societal changes are needed to help create fewer addicts to begin with or fewer people susceptible to addiction. That’s a much much much more massive issue than asking people to stay 2m apart and wear a mask. The dose/response is so much more nebulous and the number of dimensions that would need to be changed is massive.

But, yeah, lock-erm-up. See what that gets you. Hint, look south of the 49th, CF the War On Drugs and Reagan era through Clinton era crime policies. Not good.

And maybe crime rates are up because the K-shaped recovery has left behind a large percentage of the populace?

#15 Squire on 10.20.20 at 4:39 pm

Looks like sock boy is getting ready to repeat what Dad did in the 70’s. Sadly, a majority of Canadians have amnesia.
https://en.wikipedia.org/wiki/Electoral_history_of_Pierre_Trudeau

Sock boy will try but will he repeat history. So far he has with massive debt just like dadda….
Should be interesting. Get the popcorn out.

#16 Faron on 10.20.20 at 4:44 pm

#12 Ponzius Pilatus on 10.20.20 at 4:30 pm

The majority of fentanyl deadly overdoses are by male construction workers.
So he probably knows a few.

Ah, he’s trying to imprison the competition. I knew CEF was smart.

#17 catralph on 10.20.20 at 4:45 pm

If Catalyst needs proof that condo prices are falling he should look at the HouseSigma website and he will find condo listings with histories showing listings terminated or expired and then relisted shortly thereafter at lower asking prices and in many cases a lot more than $10,000 lower.

#18 TurnerNation on 10.20.20 at 4:48 pm

Two small business owners I patronized and chatted with, today, said they are just hanging on.

#19 AM in MN on 10.20.20 at 4:49 pm

Vancouver condos are still doing well. Who wants to live in the valley when you can be near the water? Markets don’t change this fact.

From yesterday, also of note Oct. ’87 was when U2 played BC Place in what I think is still the biggest concert by crowd size ever in Vancouver. Those were the days…

Unlike Garth however, that was the peak of their career!

#20 crowdedelevatorfartz on 10.20.20 at 4:52 pm

@#14 Faronista
“But, yeah, lock-erm-up. See what that gets you. ”

++++

Off the streets for a few months to clean out and out of the neighborhoods littered with broken car window glass……

Enforced Detox in a remote location in Northern BC perhaps?
( Good luck building a prison in any NIMBY location today).

Clean sheets, 3 meals a day, counselling……
The unmitigated horror for the poor dears….

But no.
Lets keep giving them drugs, a pat on the head and shove them out the door again.
Its done a bang up job so far.

#21 Dan Mason on 10.20.20 at 4:56 pm

Maybe the Trudeau, Freeland Liberals will revisit Jean Chretien’s Paul Martin’s 1.0% annual capital tax on the value of the RRSP you own.

Back in the 1990’s interest rates were 10% high end 5% low end not like now, 1.5% to 2% GIC rates.

#22 crowdedelevatorfartz on 10.20.20 at 4:58 pm

@#12 Ponzie.
The majority of fentanyl deadly overdoses are by male construction workers.
So he probably knows a few.”
++++

Actually I have know a few.
Gave some money to a fund for a guys wife and kid a few weeks back.
Had friends back in the 80’s OD in their 20’s

Almost as bad as committing suicide to the surviving relatives.

I’ve heard every excuse, every idea, every strategy for 40 years and…….. the drug/crime problem is worse than ever.

Enforced Detox and or jail for a few years.
At least we know where they are.

Drug dealers…..should be jailed for a minimum of 10 years…. they are murderers

#23 Catalyst on 10.20.20 at 5:05 pm

Re: #17

Asking prices are not data points. Show me a property that was bought in 2019 and sold lower in 2020. Shouldn’t be hard since prices are dropping so rapidly!

#24 Andrewski on 10.20.20 at 5:13 pm

Speaking about oodles and oodles and oodles of assignments:

https://www.mortgagebrokernews.ca/news/careful-preconstruction-condo-investors–lenders-dont-like-funding-assignments-334279.aspx?utm_source=GA&utm_medium=20201019&utm_campaign=WPCW-Newsletter-20201019&utm_content=708606F6-5BE0-481F-9A9A-EC7E25C236A1&tu=708606F6-5BE0-481F-9A9A-EC7E25C236A1

#25 Timmy on 10.20.20 at 5:14 pm

Time for trust fund boy Trudeau to go. He did the right thing by providing support for people affected by the pandemic, but he’s gone far beyond that and is giving away the farm. We don’t want our future generation to drown in debt and our dollar to tank. Under the Liberals watch they have created another housing bubble and thus screwed young people.

#26 Ponzius Pilatus on 10.20.20 at 5:21 pm

#19 AM in MN on 10.20.20 at 4:49 pm
Vancouver condos are still doing well. Who wants to live in the valley when you can be near the water? Markets don’t change this fact.
———————-
You wanna have facts? Can you handle the facts?
Chilliwack is the fastest growing municipality in BC, 5 years in a row.
Condo mania that was started by Christy and her developer buddies is coming to an crushing end.
Rents are falling sharply.
Thousands of condos started in 2016 are coming on the market.
Not a good time to be a landlord or an owner of a pre-sales.

#27 jess on 10.20.20 at 5:22 pm

makes one wonder what the real inspiration was

Sep 20, 2019 — Billionaire investor Robert F. Smith donated $34 million to make good on his promise to pay off the student loan debt of the entire Class of 2019 …

Robert F. Smith says his mom inspired his $34 million gift to …

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

non-prosecution agreement (NPA) with the Department of Justice and the Internal Revenue Service, agreeing to cooperate with federal investigators and pay nearly $140 million in taxes and penalties…admitted wrongdoing in a scheme to illegally dodge millions of federal taxes.”

https://www.justice.gov/opa/pr/private-equity-ceo-enters-non-prosecution-agreement-international-tax-fraud-scheme-and-agrees

#28 Penny Henny on 10.20.20 at 5:24 pm

#13 Penny Henny on 10.20.20 at 4:34 pm
What are your thoughts on Vanguard Retirement Income fund
‘VRIF’

It’s just a fund of funds hoping for a 4% distribution. You can do better. – Garth
//////////////////

Well I hold no bonds in my portfolio so I was considering this or VBAL for roughly 18%.

#29 Work and Tumble on 10.20.20 at 5:25 pm

#22 crowdedelevatorfartz

Drug dealers…..should be jailed for a minimum of 10 years…. they are murderers.

I would agree with that, 10 years is a good start.

#30 Ponzius Pilatus on 10.20.20 at 5:25 pm

#18 TurnerNation on 10.20.20 at 4:48 pm
Two small business owners I patronized and chatted with, today, said they are just hanging on.
—————————-
Stop patronizing small business owners.
They have enough problems. No need to make it worse.

#31 Long-Time Lurker on 10.20.20 at 5:30 pm

>Back to the future, part 1. Bronze Age global warming/climate change in the Antarctic in 5,000 B.C.

JANUARY 30, 2014

Extinct Elephant Seal population reveals an evolutionary ‘time-machine’
by Bangor University

…An isolated population of southern elephant seals which apparently thrived on the Victoria Land Coast in Antarctica for some seven thousand years, a relatively short period of time in evolutionary terms, was found to be an extremely genetically diverse group, more diverse in fact, than existing southern elephant seal populations…

…It seems that this particular breeding colony thrived between a point around 7,000 years ago: after the end of the last major Ice age and comparable to the beginning of the Bronze Age up until the mid 18th century. The retreating ice shelf and relative warmth along with favourable coastal habitat probably enabled the elephant seal population to grow rapidly and to a very large size.

The findings suggest that some populations threatened by climate change or other factors, such as loss of habitat or isolation, may be able to respond better than predicted, if the environmental conditions are favourable.

https://phys.org/news/2014-01-extinct-elephant-population-reveals-evolutionary.html

#32 Long-Time Lurker on 10.20.20 at 5:31 pm

>Back to the future, part 2. Caveman global warming/climate change in the Antarctic in 11,650 B.C.

Holocene elephant seal distribution implies warmer-than-present climate in the Ross Sea

B. L. Hall, A. R. Hoelzel, C. Baroni, G. H. Dent
on, B. J. Le Boeuf, B. Overturf, and A. L. Töpf

PNAS July 5, 2006 103 (27) 10213-10217; first published June 26, 2006;

We show that southern elephant seal (Mirounga leonina) colonies existed proximate to the Ross Ice Shelf during the Holocene, well south of their core sub-Antarctic breeding and molting grounds. We propose that this was due to warming (including a previously unrecognized period from ≈1,100 to 2,300 14C yr B.P.) that decreased coastal sea ice and allowed penetration of warmer-than-present climate conditions into the Ross Embayment. If, as proposed in the literature, the ice shelf survived this period, it would have been exposed to environments substantially warmer than present….

#33 Howard on 10.20.20 at 5:42 pm

#14 Faron on 10.20.20 at 4:35 pm

And maybe crime rates are up because the K-shaped recovery has left behind a large percentage of the populace?

———————————–

No. Political correctness is more to blame, particularly in Toronto. Crime rate has skyrocketed and I would recommend reading some of Lorrie Goldstein’s articles in the Toronto Sun as to why this is happening.

And re: K-shaped recovery – weren’t you lauding central bank ZIRP in past comments, which does nothing but push up asset prices mostly held by the wealthy thereby exacerbating the K-shaped wealth divide that you now decry?

It’s almost as if you want the central banks to crush the middle class and poor so that they are more dependant on government handouts. This seems to be the basic playbook of every leftist political party in the Western world today. Impoverish their own people and then swoop in like Santa Claus to save the day. The end result will be either the Brazil-ification of Canada, or if we’re lucky a strong free marketer like Thatcher will come to power and save the country.

#34 S.Bby on 10.20.20 at 5:46 pm

If you sell this DT Vancouver condo you get a $500,000 bonus:

https://www.straight.com/news/vancouver-real-estate-record-500000-bonus-awaits-realtor-of-buyer-of-138-million-condo-in-tower

#35 Frank DiPortello on 10.20.20 at 5:56 pm

Timmy, you are so right. I don’t think anybody is going to learn until it is the hard way. I think the only way Canadians are going to really be scared of voting NDP, Liberal, Green Party, Socialist, Communist etc. if they start starving and draining water from sewage for drinking water like Venezuela.

Until then they think they are getting free money and let the stupid Canadian taxpayers keep getting shafted. It is not like they are paying for it.

#36 Sydneysider on 10.20.20 at 6:04 pm

You can hold an RRSP and a RRIF at the same time. The latter can provide a tax credit of $2K each year if withdrawn.

#37 under the radar on 10.20.20 at 6:10 pm

I see commercial properties with a single retail tenant and maybe apartments above as trending lower in value . The commercial rent moratorium, high property taxes and online competition will make for some interesting buys.

#38 Faron on 10.20.20 at 6:12 pm

#20 crowdedelevatorfartz on 10.20.20 at 4:52 pm

I’m sorry to hear that you have lost friends to overdose. I agree, treatment and compassionate care is a great idea. 3 squares, a reliable shelter and clean sheets go far and are a critical platform for improvement. I have personally witnessed the transformation from day one in a treatment centre to day 30. It’s phenomenal. I’m with you.

You are basically proposing that they become wards of the state though. You don’t strike me as a socialist… For how long does the government hold onto them? What happens after? The only way to lever people out of addiction is for them to develop a sense of meaningfulness in their lives that is strong enough to overcome the urge to use. Doing that takes a ton of work. How do you set up treatment so that it’s not some kind of revolving door (and a very expensive one to boot)?

Regarding increasing sentences for dealers. That’s my knee jerk tendency too. But, recall that the demand for drugs is inelastic and the need for them WILL be met. If you penalize dealers more heavily you will either have them doing sketchier things to make sales and thus increase risk of violence or bad outcomes and invariably the price of drugs will rise. If the demand is fixed and prices go up, where will the money come from? Yep, more petty crime. I don’t know the prices of street drugs or their history, but I would guess that with higher demand now and greater difficulty in smuggling them into the country, the prices are up. And look, crime is up too. Strange. “But we are cracking down on crime, why are there more break ins?”

Has legalization and decriminalization of the hardest drugs been tried in North America? No. But we’ve done a century of other approaches to no avail as you mention. Those approaches have ranged from punitive to extremely punitive and there was no resolution and no or very little reduction in crime or use. Why not legalize? It’s morally objectionable on the face of it and extremely politically objectionable. Even Mr. Trudeau won’t touch it with a 10ft pole.

Opiates are actually pretty cheap to make. The prices are high because of the necessary black market. Cocaine is more expensive because of its geographically restricted growth and unlikelihood that there will be an international agreement to make it legal. If opiates are legalized, the price will go down and the stigma about their use will also drop. Lower prices will beget less crime and ease the burden on people who are already struggling financially. Less stigma will remove an entire dimension of the addiction cycle, shame, that is a big part of the continuation of addiction. Do you risk making it easier for people to latch onto those drugs and fire up addictions? Yes, just like with alcohol. The policy would have to be carefully constructed to reduce this impact. In net, almost everything done in secrecy or in the shadows because the activity was forced there by society has negative outcomes and leads to weird behaviour.

Ultimately, greater opportunity for lower income people would almost certainly help curtail a big part of the drug problem. People don’t become addicts because they are happy with their lives (usually). Having zero apparent opportunity is a great way to be very unhappy.

#39 SeeB on 10.20.20 at 6:21 pm

#167 Masks really do make some people more attractive

I’m gay and a centre-lefty, as are many of the people I follow on Twitter. Many Americans, especially left-leaning women, are voting for Trump because of the Dems adoption of Critical Race theory, gender ID theory, and queer theory. These regressive theories have achieved institutional capture of schools, government services, sporting orgs, etc.

Do you put your pronouns in your email signature and Twitter bio? If not, you’re a bigot and transphobe. That’s where the left is going, and why they’re bleeding out centrist support. The right wing’s stubborn denial of AGW is no more ludricous than the left wing notions that men can magically become women, or that all white people are inherently racist.

The new left is a totalitarian nightmare, and will eventually precipitate a hard right swing, but only after they’ve managed to cancel and consume their former supporters.

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

Mostly disagree. The average “lefty” that you so derisively state, is fine with gender ID, Critical Race Theory, etc. The end goal is to create an environment where people can just be whatever they want to be without threat of harm from police or getting fired, etc.

However, cancelling people over mis-use of pronouns even after they apologize is undeniably hypocritical and counter productive. Left-center folks will call out that kind of social justice bullying.

Basically, I feel like it’s OK to call out people when they say ignorant or racist things, but going full cancel mode on someone that misspoke and apologizes is unjust and counter-productive.

To counterballance your losing support statement: Calling it a “Totalitarian Nightmare” just makes you sound hyperbolic, much like those shrill pronoun police, causing equal or more bleeding of support for the “right-wing”. I know you call yourself a center-left, but you are using talking points from the right.

Why should anyone fear a pronoun cop more than a skinhead flashing Nazi salutes without repercussion? Or cops handing out water to crazy, armed vigilantes? How does anyone try to justify kneeling on a man’s neck for close to 9 minutes, well after he stops moving?

The fact that violent ideologies and actions get defended is a far scarier prospect for the health of society than temper tantrums over pronoun use.

#40 Todd Milken on 10.20.20 at 6:38 pm

In coming weeks, I would say by end of November maybe first week of December we will see a 1% US 10 year, 1.75% US 20 year, 2.0% US 30 year bond versus the US 10, 20, 30 year 0.78%, 1.35%, 1.59% rates today.

#41 Nonplused on 10.20.20 at 6:40 pm

#5 SeeB on 10.20.20 at 3:42 pm

I think the part we are most disagreeing about, assuming we are, is to the extent covid precautions and lockdowns should be mandatory.

I wear my mask at Costco but when I see the rebellious guy with the beard and tats not wearing one I don’t say anything I just keep my distance. When I see some covidiot with the mask only over his mouth but not his nose I don’t point out the uselessness of that, I just keep my distance. I don’t see the point of trying to deny Darwin his rightful harvest of souls. Plus the fools aren’t going to listen anyway.

That’s why I really don’t like people like Cottagers Stay Away. Busibodies. Chances are she doesn’t interact with any of those people when there is no pandemic so why would they suddenly be interested in her now? I don’t see any harm in people visiting their cottages as long as they keep to themselves and self isolate if they have symptoms.

The other day the arborists finally showed up after months on the waiting list. 4 guys working together no masks. But they were outdoors and I suppose represent a “cohort”. So I am not sure these guys should be shut down as they need to make a living and I need some trees trimmed. Lots of trees trimmed. The sort of amount of trees trimmed that makes the wood chipper a necessity. And I am not sure they should have to wear masks because it is fairly physical work. You won’t find too many out of shape arborists.

#42 Petulant on 10.20.20 at 6:44 pm

Ah yes, boomers and the cannibalism of their kin.

Carry on, it can only end with rainbows while unicorns drink strawberry milkshake out of an Old Faithful sized fondue.

“We took enormous saved wealth from our parents to go on cruises buy luxury homes and ride motorcycles around during our third midlife crisis. Now children, go borrow more money so my generation can cash in on the interest.”

PS: you should think better of millenials and be grateful they continue to sacrifice their futures to a voting block higher than them on the government’s money chart. One day Atlas could shrug and then what would that generation do? What would the entire ponzi scheme do?

Indentured servitude sucks. Millions are awaking from their slumber. Calling them “wusses” doesn’t change that their future has been stolen. COVID19 was a bad play….they pushed it too far this time.

#43 Nonplused on 10.20.20 at 6:45 pm

#9 GBiddy on 10.20.20 at 4:03 pm

“No human would choose to reside in a shoe-box voluntarily…”

You obviously don’t have a teenage boy. Throw a laptop and a 24″ monitor in his room and you won’t see him for days at a time. The only way to tell he is still alive is to count the soda pops that disappear from the fridge.

#44 Steve on 10.20.20 at 6:51 pm

Should you put part of rrsp into rrif in order to qualify for pension tax break? Something like 2000/year tax free at 65.

If it means taking taxable income while nullifies the benefit, no. – Garth

#45 dogwhistle on 10.20.20 at 7:19 pm

#22 crowdedelevatorfartz on 10.20.20 at 4:58 pm

“Drug dealers…..should be jailed for a minimum of 10 years…. they are murderers”

Or just do it Rodrigo Duterte style, but that ain’t very
‘sunny ways’ I’m afraid.

#46 yorkville renter on 10.20.20 at 7:24 pm

#2 – the metric is:

IF (MORTGAGE + MONTHLY FEES + a buffer for vacancy + repair fund) < RENT COLLECTED THEN consider it… but, there's so much more that there's no single metric that will enlighten all.

#23 – You need to consider the starting point. $10k/week dropping is from, about, August (If I recall).

It's not "$10k/week for all time"

#47 Faron on 10.20.20 at 7:25 pm

#33 Howard on 10.20.20 at 5:42 pm

I’ll take a hard pass on Lorrie Goldstein. Hadn’t heard of him, but a quick glance at his “headlines” and reading the wildly inaccurate first paragraph of an article of his on carbon tax (carbon taxes need to be revenue neutral and anyone in policy knows it) makes his agenda perfectly clear. I’m sure you, like crowdie, want Law ‘n Order. Bigly. Crack some skulls for the lulz. LOL.

Sure NIRP has been a factor in inflating the RE and equity bubbles, but they aren’t responsible for the lack of jobs and the simple fact that COVID has clobbered the jobs of the lowest earners by dint of how it’s controlled the pandemic needs to be controlled.

If CBs didn’t lower rates and keep markets liquid through bond and MBS purchases and if they didn’t send the general signal that they are there for support, how would that have ended up? Did you read Garth’s post yesterday? Seriously, do the thought experiment and tell me how a smouldering hole where finance used to be, a likely banking crisis and widespread corporate bankruptcy would have been better for lower income folks? Markets turned around the day the fed unleashed its bazookas. Yes, that propped up the corps, but also kept people’s retirements much more intact, and kept the wealth effect from inverting to sheer panic that would spread throughout the economy. Stonks are not the economy, but they sure are important for sentiment.

I’m fine with raising rates once there’s a functionally independent economy again and preferably faster than last time. I also agree that a low rate environment doesn’t bode well in the long term. But during a crisis, complaining about low rates is foolish. Almost as foolish as complaining about stimulus spending even if that’s your hobby horse to ride.

#48 joblo on 10.20.20 at 7:30 pm

Hmm…what are Trudeau and the liberals hiding?
(asking for a friend)

#49 jackl on 10.20.20 at 7:41 pm

He’s done Garth…finished.
It is going to be Trump for 4 MORE YEARS
Get used to it.
Unlike the Trump/Russia LIES, this is the REAL DEAL.
I think that laptop is only the beginning.
Crying yet????

https://nypost.com/2020/10/20/photo-biden-meets-hunters-alleged-partner-from-kazakhstan/amp/

#50 SeeB on 10.20.20 at 7:44 pm

#41 Nonplused on 10.20.20 at 6:40 pm

#5 SeeB on 10.20.20 at 3:42 pm

I think the part we are most disagreeing about, assuming we are, is to the extent covid precautions and lockdowns should be mandatory.

——————————————————–

Actually, I don’t think we are that far off at all on the masks issue.

The single covidiot in Costco? Yeah, can’t do much other than dirty looks and a wide berth.

I totally understand folks in a physical vocation who can’t breath properly, and have no choice but to work closely with 2-3 other people. They are taking an informed risk, and just trying to do their job.

My main source of umbrage comes from the unmasked millennial parties, the anti-mask protests, the conspiracy nuts clouding up simple guidelines, people with devil may care attitudes, and the angry anti-maskers who show up to a store and are asked to put one on. (Non-handwashers had a special place in hell long before Covid).

We could be full open for business tomorrow if we could trust people to take it seriously enough to follow guidelines and just be generally courteous. I’m not suggesting we should be afraid, just… understanding it’s a tough time and making small adaptations. Sadly the fear mongering news and the me-first conspiracy crowd that followed have ruined any potential for that trust to develop.

I know Garth made fun of jumping off the sidewalk for others, but having done so a couple of times myself, I found I’m more apt to actually acknowledge and be friendly with people rather than just quietly ignore them. It’s feels silly, yes, but it’s also a positive experience when you show that respect and concern for a stranger.

Lockdowns have been a disaster over all. The cure is turning out to be worse than the disease when you consider the long term economic and mental health costs.

If only the powers that be had the knowledge and the courage to mandate indoor masks where appropriate and/or handwashing rather than force businesses to close. I am also not sure how much the individualist (and obesity) streak in North America contributed to the lockdown decision.

#51 Love_The_Cottage on 10.20.20 at 7:56 pm

RRSPs (like tax-free savings accounts) are not products or things, but just accounts into which you can dump different investments. Growth is tax-free…
____________
This is factually incorrect. Growth is tax-deferred, not tax-free in an RRSP. You pay tax at the appropriate rate when you withdraw the money.

Maybe. – Garth

#52 TurnerNation on 10.20.20 at 8:01 pm

Can confirm, these Downtown TO newer condo units are renting for $800 less than last year at least. $2100 down from $2600-2900.That a quarter drop and it’s not done yet

This one has a 300 sq foot outdoor terrace!

REDUCED: 1BDR Condo, Queen/Portland, above Loblaws
$2,100.00
Size (sqft)
650
https://www.kijiji.ca/v-apartments-condos/city-of-toronto/reduced:-1bdr-condo-queen-portland-above-loblaws/1523260966

2 Bedroom CITY PLACE Condo for Rent in the Heart of Toronto!
$1,950.00
Size (sqft)
650
Personal Outdoor Space
Balcony
https://www.kijiji.ca/v-apartments-condos/city-of-toronto/2-bedroom-city-place-condo-for-rent-in-the-heart-of-toronto/1528674182

2 Bed Condo in Entertainment District w/ Lake/Park/CN Tower View
$2,100.00
Size (sqft)
615
Personal Outdoor Space
Balcony
https://www.kijiji.ca/v-apartments-condos/city-of-toronto/2-bed-condo-in-entertainment-district-w-lake-park-cn-tower-view/1526808256

………..
The business of sports. From the Peace of Mindful weblog.
We shut down the economy and give up freedoms for this?? Science…we need a reset there

https://titanswire.usatoday.com/2020/10/11/tennessee-titans-ryan-tannehill-covid-19-testing/

““It was a roller coaster for sure. Definitely the fact that we had guys with no symptoms testing positive and we had guys with full blown symptoms getting consecutive negative tests on multiple days was really eye-opening,” Tannehill said. “Just the fact of we really don’t know. So, we have to to treat everyone as if they have the virus. Unfortunately, really probably lost some faith in the testing system just through everything we’ve been through over the past week and a half, but we said that from the beginning that testing is not going to prevent the virus from being spread, it’s the way we handle ourselves with all the protocols and handle ourselves outside the building as well, so it’s been a roller coaster for sure.”

Based on how he describes it, Tannehill certainly has justification for not having total faith in the testing system, and it would appear that there are indeed some flaws in it — and that’s without mentioning some of the false negatives we’ve seen during the season.”

#53 SoggyShorts on 10.20.20 at 8:01 pm

#167 Masks really do make some people more attractive on 10.20.20 at 3:06 pm
#161 Faron on 10.20.20 at 2:13 pm
#151 SoggyShorts on 10.20.20 at 12:25 pm
I gotta say, that sounds a LOT like what I was warning about:
Voting Trump because the left will call you a bigot for not placing pronouns in your bio?
I haven’t checked, but I’m fairly certain that’s not the platform they are running on.

That looks a lot more like someone clicked on a few too many “The liberals will eat your babies if you don’t accept 47 genders” links and poof, down the rabbit hole they went.

I mean is that going to be the main topic in the next debate? Trump yelling “Don’t listen to him, he’s fake news” and Biden responds with “Did you just assume my gender?!!?!”

I hardly think so.

“A totalitarian nightmare” is not a phrase that someone who is getting a balanced diet of information would use.

Basic tip: If either the left or the right looks like they are the anti-christ/nazis/terrorists/baby-eaters, you need to step back and relax. The extreme fringe is too loud and you’re listening to it too often.

Try to focus on the ~90% of people in each party who aren’t way out there.

#54 TurnerNation on 10.20.20 at 8:13 pm

Get ready for winter layoffs and bankruptcies Comrade, here in the Former Kanadian Union (FK-U). That’s fitting…

Moving right along, people are broke. The UN-backed regime has ordered Restaurants closed. Patio season is over. How much take-out must you sell to stay alive?
Hang in there, few more weeks and we snap to attention and salute our freedom and those paid the price. Due to inflation, we must all now.

https://www.blogto.com/eat_drink/2020/10/toronto-getting-rid-curb-lane-patios-winter-snow-clearing/
Toronto is getting rid of all curb lane patios to make way for winter snow clearing

#55 SoggyShorts on 10.20.20 at 8:21 pm

#51 Love_The_Cottage on 10.20.20 at 7:56 pm
RRSPs (like tax-free savings accounts) are not products or things, but just accounts into which you can dump different investments. Growth is tax-free…
____________
This is factually incorrect. Growth is tax-deferred, not tax-free in an RRSP. You pay tax at the appropriate rate when you withdraw the money.

Maybe. – Garth
********************************
If you are clever about it and withdraw a combination of TFSA, RRSP, and some non-reg in early retirement you can slip under 5% income tax. Actually zero is possible, but usually not practical.

#56 yorkville renter on 10.20.20 at 8:35 pm

#49 – what are you going on about? no body cares what Hunter does, did or is planning to do – he is not running for Pres.

…and if you want to talk about making $$$ off your parents name, *ahem* have you met the Trump kids?

#57 tccontrarian on 10.20.20 at 8:40 pm

#50 SeeB on 10.20.20 at 7:44 pm

“…My main source of umbrage comes from the unmasked millennial parties, the anti-mask protests, the conspiracy nuts clouding up simple guidelines, people with devil may care attitudes, and the angry anti-maskers who show up to a store and are asked to put one on. (Non-handwashers had a special place in hell long before Covid).”

Are you talking about these people?

https://acu2020.org/english-versions/

or these ones:

https://brandnewtube.com/watch/us-doctors-call-for-action_qA9pQ6RWHpfd9vF.html

Saw a 40’s something guy today with a double mask on.
The blue ‘surgical’ style one on the inside, a N95 type on the outside.
I just had to say, “you know bud… you have a 0.01% chance of dying if you get infected – which is probably lower than dying from a car accident”.

He didn’t seem very receptive – but should I care?

tcc

#58 the Jaguar on 10.20.20 at 8:50 pm

And now for Something Completely Different ( as a play on the Monty Python film and general wisdom). Good read for Oil Bugs, authored by Andrew Nikiforuk, an outstanding Canadian writer and journalist. Peeps in British Columbia might also be interested given the references such as: “”In recent years, Premier John Horgan’s NDP government has substantially increased subsidies to fracking companies. Such support caused Andrew Weaver, when he was leader of the BC Greens, to stand in the legislature and cite — with derision — BC NDP members’ own words against fracking and LNG when they were in Opposition.””

https://thetyee.ca/Analysis/2020/09/29/Fracking-Future-Should-Be-Election-Issue/

A small excerpt from the article:

Art Berman, a highly-respected analyst, doubts “that we are on the cusp of either a global energy crisis or the end of the oil age. It is more likely that both supply and demand will fall in tandem as the global economy contracts.”
Berman, who was one of the first analysts to question the economics of fracking, does not foresee a normal recovery for either fossil fuels or the economy. In a recent presentation he notes that the pandemic has merely highlighted and accelerated the industry’s critical weakness: unfettered expansion into extreme fossil fuel sources based on high debt loads. He also explains that it took nearly five years for the market for refined petroleum products to recover after the 2008 financial collapse.
It’s within this context that all of Canada’s oil exporting provinces, including Alberta, Saskatchewan and Newfoundland are experiencing high debt, budget shortfalls and fiscal uncertainty.

#59 Drinking on 10.20.20 at 9:10 pm

Great article today!

A co-worker of mine mentioned that he is involved in WFG (World Financial Group), gave me his card. Did some research on it and my conclusion is that it seems like a pyramid scheme, the uppers seem to be doing quite well but the bottom feeders not so well. Not saying that one can do well at this but my spidey senses are saying a big fat no.

Anybody familiar with this company, what are your thoughts??

Run. – Garth

#60 Stone on 10.20.20 at 9:13 pm

#42 Petulant on 10.20.20 at 6:44 pm
Ah yes, boomers and the cannibalism of their kin.

Carry on, it can only end with rainbows while unicorns drink strawberry milkshake out of an Old Faithful sized fondue.

“We took enormous saved wealth from our parents to go on cruises buy luxury homes and ride motorcycles around during our third midlife crisis. Now children, go borrow more money so my generation can cash in on the interest.”

PS: you should think better of millenials and be grateful they continue to sacrifice their futures to a voting block higher than them on the government’s money chart. One day Atlas could shrug and then what would that generation do? What would the entire ponzi scheme do?

Indentured servitude sucks. Millions are awaking from their slumber. Calling them “wusses” doesn’t change that their future has been stolen. COVID19 was a bad play….they pushed it too far this time.

———

Really? Not being a “boomer” myself, I’m very interested to see how you’ve been pushed too far and what you and your reject brethren whom you you so aptly called indentured are going to do.

Come now, I’m really waiting. Please. Show us all what you can do.

All I hear are crickets.

#61 WiseGuy on 10.20.20 at 9:20 pm

@ #7 Catalyst

Perhaps, you need to purchase a book titled ‘Greater Fool’ and you’ll understand why ‘some’ condos are selling for rediculous prices.

Remember, condo prices in 1990 dropped 50% of their value in the last major correction. It took 6 to 7 years to get there, but they continued to drop year after year.

Downtown condo’s are in for a rough ride 100% but I don’t agree with the assessment that prices are declining 10k a week.

Some anecdotal condos picked from housesigma:

Unit 1506 – 218 Queens Quay W:
2020-10-16:Sold $605k
2009-09-18:Sold $313k

Unit 1404 – 210 Simcoe St:
2020-10-16: Sold 735k
2016-07-28: Sold 551k

Unit 1033 – 54 East Liberty:
2020-10-14: Sold 690k
2019-02-06: Sold 525k

There isn’t much moving which will likely drive down prices but I would love to see your data claiming prices are falling.

#62 Steve-0 on 10.20.20 at 9:21 pm

Garth,

Renew mortgage early now to lock in these low rates, or wait 10 months when my mortgage is up for renewal anyway. Penalty versus stavings for existing term is about a wash (lose a couple hundred dollars).

#63 AM in MN on 10.20.20 at 9:22 pm

#39 SeeB on 10.20.20 at 6:21 pm

Mostly disagree. The average “lefty” that you so derisively state, is fine with gender ID, Critical Race Theory, etc. The end goal is to create an environment where people can just be whatever they want to be without threat of harm from police or getting fired, etc.

——————————————-

Nonsense.

The end goal is a marxist state where people don’t know what to believe anymore and they fear the govt. or social shaming so much that they just do as they are told.

In particular, this requires teaching people that “families” that are made up of a mother, father and their children are wrong and is a form of white supremacy…. check out the newest addition to the Smithsonian in DC.

Myself, I don’t get worked up by it, I checked out a long time ago. Self employed and kid in an independent school that shares my beliefs, and builds a community of like minded people, I just don’t care what others think.

It’s a shame to watch western civilization on the downward spiral, but I think we are moving eventually toward a world more of city states than nation states as the financial squeeze hits and the functional societies don’t want to carry the disfunctional ones any more.

Same reason I don’t believe you should bank on “owning” your house. It isn’t yours anymore when the mob comes and takes it, physically or through taxes and foreclosure. Take the equity you have, especially at today’s rates, and invest in something liquid and difficult to be seized.

#64 Ustabe on 10.20.20 at 9:32 pm

Some of the stuff you guys fret about would be laughable if it wasn’t so sad. We are going to be drinking sewage water? Really?

As to the drug overdose situation, Johann Hari wrote a book, Chasing the Scream, some years ago. Its a $9.99 Kindle download on Amazon, worth the money and time to read.

Also Portugal. Just Google them up, read how they handled a critical situation and what their outcomes now are, years down the road. We spend time in Portugal, Lisbon is safe and beautiful anywhere, anytime. Tavira and Evora in the south more so.

I must say that the only thing I take from this comment section of late is that we have constantly on display the reasons why the current CPC will not form government anytime soon.

Finally, for the love of privacy, yours and mine, can all of you all please stop using “amp” links. If you don’t know why…study it out!

#65 Stan Brooks on 10.20.20 at 9:39 pm

Pandemic will end. Downtowns will intoxicate once more.

It seems the rulers disagree.

https://worldnewsera.com/news/startups/forget-about-coronavirus-bill-gates-says-climate-change-is-even-scarier-than-the-covid-19-pandemic-warning-the-current-shutting-down-is-nowhere-near-sufficient-to-stop-climate-change-tech-ne/

The trends clearly are:

1. Assault on energy. Move entirely towards green energy.
2. Promotion of climate change to reduce economic activity
3. Automation and outsourcing of jobs. near full replacement of jobs by AI.

we have:
1. Overpriced cities by a factor of 4 considering incomes and economy AT THE MOMENT. GTA is by far the biggest real estate bubble in the world.
2. We are at peak credit, monetizing like crazy.
3. Our economy is dependent on energy production and consumption.
4. Our homes are not energy efficient.
5. We have increasingly popular rulers who are all for green energy ideologically. This means more taxes on energy consumption up to levels you can’t even imagine.
6. Our jobs losses are structural. The stupidity with ‘the economy that has excess capacity that justifies stimulus’ is just that, a stupidity and idiocy.

It could be that purchasing real estate in the big cities is justified just by the coming tsunami of inflation.

But almost any other diversified alternative, other than staying in cash seems much better choice for ‘investment’.

Besides, as housing becomes the preferred leveraged, non-taxable, etc. ‘investment’ due to idiotic monetary and housing policies and as taxing revenue dives, it increasingly becomes a taxation target.
The ability to run huge deficit entirely on money printing with practically no tax base, on the back of savers and retirees is very limited as the socks boy and his incompetent central bankers and financial advisers will soon find out.

Cheers,

#66 Dr V on 10.20.20 at 10:09 pm

Garth – Is it correct that an rrsp withdrawal cannot be income split but rrif income can?

#67 Masks really do make some people more attractive on 10.20.20 at 10:25 pm

#53 SoggyShorts on 10.20.20 at 8:01 pm
#167 Masks really do make some people more attractive on 10.20.20 at 3:06 pm
#161 Faron on 10.20.20 at 2:13 pm
#151 SoggyShorts on 10.20.20 at 12:25 pm
I gotta say, that sounds a LOT like what I was warning about:
Voting Trump because the left will call you a bigot for not placing pronouns in your bio?
I haven’t checked, but I’m fairly certain that’s not the platform they are running on.

“A totalitarian nightmare” is not a phrase that someone who is getting a balanced diet of information would use.

Basic tip: If either the left or the right looks like they are the anti-christ/nazis/terrorists/baby-eaters, you need to step back and relax. The extreme fringe is too loud and you’re listening to it too often.

////////

Thanks for mansplaining how women shouldn’t worry their little heads over the loss of their sex-based rights.

The people and groups that have reached peak woke BS are racially diverse, and are comprised of both left and right ends of the political spectrum. Radical feminists are not right wing, but they are happy to work with the right to preserve women’s rights.

Women are already losing their jobs for saying men can’t become women. We’re unlikely to be dissuaded by uninformed liberals who think men with paraphilias have the right to identify as women, for any and all legal purpose.

#68 Ace Goodheart on 10.20.20 at 10:28 pm

So today I am just really annoyed with Canadian politicians.

The Conservatives decide to call their revived investigation into the “We” fake charity brothers controversy, the “anti corruption committee”.

Trudeau, predictably amused by this, announces that if the Cons go ahead with this, he will consider it a confidence matter (ie, there will be an election).

O’Toole, knowing he cannot win against Mr. “Woke” Socks, backs down and offers to change the name of the truth and justice committee.

Like, what the f?

I am seriously paying for this?

Come on, you ________________ (fill in the blank with your desired nasty phrase).

When your government acts like kindergarten four year olds, you have to wonder, who is actually in charge?

Anyone? Bueller?

Can the real Slim Shady please step up?

We need someone to actually govern Canada. Like, pronto.

#69 tccontrarian on 10.20.20 at 10:34 pm

Found this in my readings and it seems that we’ve known about the relationship between inflated asset valuations (bid up by speculative activity), and interest rates, for a long, long, long…time (162 years)!
Garth has mentioned it a few times as well, although…I don’t think he was around back then – or was he.

—————————————————————

“That the rate of interest will be lower when commerce languishes and when there is little demand for money, than when the energies of commerce are in full play and there is an active demand for money, is indisputable; but it is equally beyond doubt, that every speculative mania which has run its course of folly and disaster in this country has derived its original impulse from cheap money.”

– The Economist, 1858 (h/t Jamie Catherwood)

#70 mike from mtl on 10.20.20 at 10:47 pm

#50 SeeB on 10.20.20 at 7:44 pm

“…My main source of umbrage comes from the unmasked millennial parties, the anti-mask protests, the conspiracy nuts clouding up simple guidelines.
///////////////////////////////////////////////////////////

You know there’s no evidence of such, trust me the media would be all over those scaffolds.

We’ve (QC) had a mandatory mask mandate for basically all indoor non-personal space since July, does not seem to make any difference. Same breakouts at LTC and now schools. Apart from some unfortunate initial jerks, compliance that I see is a non-issue. Same for everywhere else the world with similar or more strict restrictions. Yes masks when used properly can reduce transmission to some degree, that’s good, though not completely which has been documented.

Thing is these “cases” in Mtl are concentrated in areas with welfare bums, crappy living conditions, working poor, immigrants who HAVE to work in person, and so on. That goes on to transfer to the general population that does interact at some point. No official wants to go there, blaming issues on their situation… no.. it has to be the young party kids and protesters who are the selfish jerks.

The ubiquitous hand washing goo I do hope is something that sticks around after, hands are an excellent vessel to transfer all sorts of baddies. Gastro and other really bad known surface bugs are and could be drastically reduced by continuing the practise.

#71 Blair on 10.20.20 at 10:54 pm

We have a 54K mortgage. We want to renew and pull out an extra 50K (104K in total). We don’t have a secured LOC and want to get one – just in case for the future.

The mortgage broker came back with a rate of Prime-0.7. Not mentioned during the discussion was the fact that the lender is offering a collateral mortgage. I have been told these mortgages are BAD.

Can we refinance & get a secured LOC without having a collateral mortgage?

#72 Prussian blue on 10.20.20 at 11:06 pm

Regarding comment #50
Wearing a n95 plus a surgical mask may be a bit much, especially if you are 40s and risk of dying from covid is small.

But i have done this also for several reasons.
If i get it, i do not want to spread it to elderly family members.
I do not want any long term side effects of covid.
I do not want to be quarantined and not work for 2 weeks or longer. It will be a hit to my finances and unfair to my co workers to pick up the slack.

Thanks for the awesome blog, Mr.T

#73 n1tro on 10.20.20 at 11:08 pm

#50 SeeB on 10.20.20 at 7:44 pm

Lockdowns have been a disaster over all. The cure is turning out to be worse than the disease when you consider the long term economic and mental health costs
——-
Wow….when these exact words were uttered by the few back in a April, we were called science deniers and grandma killers. But I guess it is ok now since the WHO flip flopped again.

#74 Karlhungus on 10.20.20 at 11:20 pm

You would convert to a RRIF early because you can split RRIF income with your spouse. Can’t with RRSP

#75 Faron on 10.21.20 at 12:24 am

Here’s a quote from a house listed 1 Oct. here in Vic.

“CORONA CASH CRUNCH: Listed Oct 1 at $950,000 now discounted $100,000 on offers of $849,900”

Brand new, in town, decent neighbourhood. Could be a one off, but this sounds desperate.

Currently, no other evidence of stress in the market with sales up and listing crashing and 1 in 5 houses going for over asking. The 850k house we backed out of went for 950k.

What will winter bring?

#76 Jane24 on 10.21.20 at 1:13 am

In the 1980’s RE boom and bust, the concept of small studio condos were new to the market but they and older bachelor apts burned the fastest in the bust. No-one wanted to either buy or rent them as most buyers/renters could suddenly afford more space as prices overall dropped. As the new style micro and one bed condos completed and were delivered, the intended new owners walked away and the builders were stuck. The whole situation was not helped by mortgage providers refusing to lend on small units. Some units even then back then had been resold over the building process and builders went after original buyers who had thought they were well clear of the mess.

So here 32 years later we have exactly the same thing happening to a new generation of RE agents and investors. I can tell you how it will end as this happened to many friends in 1988/89.

One – the market continues to drop but you hold on as you cannot believe it and won’t take a small loss on the price you paid.
Two – the market continues to drop but your listing price is always behind these price drops for the reasons in number one.
Three- you get into such a financial mess that you lose your principle residence.

The solution if you are holding a small condo unit or have one to be delivered soon is to ensure that your unit is the cheapest one in the building NOW and get rid. Many years as a Cdn RE agent means that I can tell you that the first price you are offered in a dropping market is the best one you are going to get. Take it and insure a big deposit and don’t get greedy again.

#77 Buy? Curious? on 10.21.20 at 1:21 am

Garth, I like your throwback picture. You haven’t changed much. Though what I’ve noticed over the last few months on the comment section is how stupid a growing minority are. Throwing drug dealers in jail for 10 years? Do you know what you’re talking about? I don’t care what happens in Canada but these right wing fools are becoming bolder. How about we jail CEO’s, dirty cops, gah, I could go on but most of readers know what’s right and have empathy for other human beings but for that minority, could you please go to a few Trump rallies, please? Without a mask? Thanks.

#78 Charlie Green on 10.21.20 at 3:56 am

“Have the chequebook ready”, check. But when, there’s the rub. A snowball has to roll all the way to the bottom of the hill before it stops rolling. Right now the Mini-Condo collapse is only in the early stages of an inevitable avalanche.

Lots of things will happen to make things worse. Pressure from natural selling ( death, divorce, bankrupt , court order etc etc etc) will drag the market down like an anchor on a chain, taking everybody, good bad and ugly with it. Think ‘Cascade effect’. It will hit tho bottom when it does, not just when you can’t take the pain any longer.

Remember, a market can stay irrational longer than you can stay liquid. As real estate is a non fungible asset you’re stuck with it as long as the anchor sinks. And like physics and finance, terminal velocity is when an object is past its arc of redemption. Or, you can bail at a big puking loss and add to general fear, which will only exacerbate the velocity of change.

“ Keep your chequebook ready”, hmmmm, good advice. But I’d also suggest to stay out of the lobbies of those hi-rise buildings as long as the puke is still falling. Current owners, sell now, or forever hold your vomit. And for those who’ll wisely wait, when the seller can’t tell whether you’re a vulture or an angel, that’s the time to swoop in and do a quick execution.

#79 Free advice on 10.21.20 at 7:42 am

#66 Dr V on 10.20.20 at 10:09 pm
Garth – Is it correct that an rrsp withdrawal cannot be income split but rrif income can?

*******

Garth – is it correct that you provide all your services at no cost and your staff are all volunteers and your office expenses/rent are zero?

#80 mick McClean on 10.21.20 at 8:11 am

Seems to me you pay a fee of $40 to $50 on top of the withholding tax on a RRSP but no fee on a lump sum withdrawal from a RRIF. Thats the case with Big Blue anyway.

Another reason not to invest with a bank. – Garth

#81 crowdedelevatorfartz on 10.21.20 at 8:20 am

China’s “wolf warrior” tactics backfire.
Time to send the Chinese Ambassador to Canada packing?

https://www.scmp.com/news/china/diplomacy/article/3106359/china-unleashed-some-wolf-warrior-diplomacy-canada-it-may-have

As Trump will soon learn at the polls.
No one likes a bully.
As Trump will soon learn at the polls.

#82 Dharma Bum on 10.21.20 at 9:00 am

#22 crowdedelevatorfartz

Drug dealers…..should be jailed for a minimum of 10 years…. they are murderers.
——————————————————————–

I agree.

Put out an APB for the arrest of the following perps immediately:

Glaxo Smith Kline
Pfizer
Johnson & Johnson
Abbot Laboratories
Eli Lily
Merck
Novartis
Purdue Pharma

The above criminals have killed more people than all of the street drug dealers combined.

#83 Dharma Bum on 10.21.20 at 9:03 am

“We have…a friend who is a retired financial advisor…”
——————————————————————–

Great.

With friends like that, who needs enemies?

#84 Dharma Bum on 10.21.20 at 9:13 am

#68 Ace Goodheart

I’m with you on this.

The hypocrisy spewing from the disgusting pie holes of our corrupt and useless politicians is mind boggling and disheartening.

Sigh.

#85 TurnerNation on 10.21.20 at 9:23 am

This is the future our globalist elites have planned for us.
NO fun Comrade. All fun places have been shut down in most areas of (former) First World countries.
Pubs, restaurants, clubs, rip clubs, theatres, fall fairs, sports events, cinemas.
There is only CV protocols – the New System religion. This is permanent.
Don’t believe it? Read on. Going shopping is allowed though.

Your new routine it says! Waddling your overstuffed frame to a testing site will make you healthier. Positives will be locked in their homes. Beware
…..
“”We are excited to support the health and safety of all Americans by bringing them a convenient COVID-19 testing solution” says David N. Eskenazi, President of Sandor Development. “With the substantial traffic and regular visits to our properties, Americans will be able to make COVID-19 testing part of their regular routine and help flatten the curve and restore regular business and life for the United States.”

….
With this agreement, a network of ‘pop-up’ COVID-19 testing sites will be rolled out across the United States. The pop-up labs will be managed by Las Vegas based company Collection Sites, LLC and powered by Alcala Testing and Analysis Services, a CLIA-licensed laboratory based in San Diego, California. Appointments and payments will be handled through an online portal http://www.testbeforeyougo.com .

The network of pop-up labs will be located across 65 Sandor locations in 25 U.S. states, with California, Texas, and Arizona targeted initially. Testing sites will now be available for Americans seeking fast, available, and accurate testing for themselves and their loved ones in the weeks and months ahead. The first location is set to begin installation in November 2020 with daily testing capacity of 150 tests per site and charging USD $59 to $139 per test.

#86 KLNR on 10.21.20 at 9:26 am

@#39 SeeB on 10.20.20 at 6:21 pm

Mostly disagree. The average “lefty” that you so derisively state, is fine with gender ID, Critical Race Theory, etc. The end goal is to create an environment where people can just be whatever they want to be without threat of harm from police or getting fired, etc.

——————————————-

Nonsense.

…In particular, this requires teaching people that “families” that are made up of a mother, father and their children are wrong and is a form of white supremacy…. check out the newest addition to the Smithsonian in DC.

———

lol, in what albatross of a country is this being taught?

#87 This just in on 10.21.20 at 9:27 am

IMF presents a new toaster!

https://m.youtube.com/watch?v=enmHW4gCkAY

#88 crowdedelevatorfartz on 10.21.20 at 9:33 am

@#83 Glaxo Bum
“The above criminals have killed more people than all of the street drug dealers combined.”

++++
Ahh, but at least their thousands of employees paid taxes.

#89 paulo on 10.21.20 at 9:33 am

Joke of the day:

Stats Canada ake the clueless alien’s that live on another planet:

Would like Canadians to believe that the current inflation rate is O.5% annualized lol lol lol lol where did these clowns come from?

#90 TurnerNation on 10.21.20 at 9:52 am

Here it comes. This entire shut down is an attack on our way of life, the globalists. Reset101.
Many will not come through the lockdowns entact; broke and broken they will submit to whatever the globalists throw at us, all planned decades ago.
The New System is a global prison system; everyone must be broken in.

Say why do you think that the Least Coast has been isolated into a lockdown bubble/virtual Berlin Wall, and airlines, trains and bus service has pulled out??
Compliance costs. Submit now:

https://huddle.today/new-carbon-tax-plan-a-heavy-burden-on-atlantic-canadians/

New Carbon Tax Plan A Heavy Burden On Atlantic Canadians
Very few Atlantic Canadians are aware the federal government is about to usher in new regulations on fuel production that will cost businesses and consumers in this region more than $1.4-billion in direct compliance costs.

#91 Stan Brooks on 10.21.20 at 10:13 am

#89 paulo on 10.21.20 at 9:33 am
Joke of the day:

Stats Canada ake the clueless alien’s that live on another planet:

Would like Canadians to believe that the current inflation rate is O.5% annualized lol lol lol lol where did these clowns come from?

It could be worse, they can report deflation and have justification for negative real rates. The BoC’s boss said that ‘it is in their toolkit’.

Hard to sell that if you report 8-10 % inflation.

Cheers,

#92 Dr V on 10.21.20 at 10:19 am

80 Free – the question is directly related to the post. I could have rephrased it to “It is my understanding…” as this is what was explained to me by my advisor, You will note another commenter also mentioned it.

No charge. You’re welcome.

#93 Nixter on 10.21.20 at 10:34 am

I remember many moons ago, home owners on the east coast walked away from their electric heated homes couldn’t pay their electric bills.
Can’t remember which province, the subdivision completely emptied. Could have been Nova Scotia, not sure will try and find the information.

#94 TurnerNation on 10.21.20 at 10:39 am

Boomers everything old is new again. The Stockholm Syndrome is strong in the comments today.
If you just submitted more to the insane CV protocols destroying our way of life, economy and minds then we wouldn’t be in this mess. Our global elites just want us healthy! Yes they love us so. Selfish you just cannot see this. You ruin it for all of us .

New system programming…complete.
https://en.wikipedia.org/wiki/Stockholm_syndrome

#95 Nixter on 10.21.20 at 10:46 am

2013 Nobel Prize winner Stanford Biophysicist Michael Levitt slammed for wrong think

Michael Levitt
@MLevitt_NP2013
My keynote uninvited from https://biodesign-conference.com/index.php

“… too many calls by other speakers threatening to quit if you were there. They all complained about your COVID claims”.

Computational biology & biodesign are based on my work. Time to cancel them & me.

New Dark Age Cometh.
6:56 AM · Oct 18, 2020

#96 Charles Green on 10.21.20 at 10:53 am

Canada, a country you can’t afford.

https://nationalpost.com/opinion/john-robson-canadians-need-to-wake-up-to-the-financial-mess-were-in

100% taxation and confiscation are a certainty. We all read about globalist planning to steal your life savings. That’s a worldwide political issue. But, Canada, has to start expropriating assets to survive as a Liberal Party war prize. It’s going to happen in the coming budget. Freeland musing last week told you so.

” We have to find a new anchor” , she said. This is a woman who’s drowning. Trudeaus killed the golden goose. Mining, Energy , Industry, dead dead dead.

Where’s the money going to come from now that every major revenue driver is lying in ruins under Trudeaus pedastal? Yes, the target is you.

#97 Love_The_Cottage on 10.21.20 at 10:54 am

#80 Free advice on 10.21.20 at 7:42 am
#66 Dr V on 10.20.20 at 10:09 pm
Garth – Is it correct that an rrsp withdrawal cannot be income split but rrif income can?

*******

Garth – is it correct that you provide all your services at no cost and your staff are all volunteers and your office expenses/rent are zero?
_________
There are legitimate sites that do provide information for free, and as a bonus no conspiracy theories!

https://turbotax.intuit.ca/tips/pension-income-splitting-lets-you-split-your-income-with-your-spouse-2-5548#:~:text=Eligible%20pension%20income%20can%20include,pension%20plan%20and%20some%20annuities.&text=Keep%20in%20mind%20that%20it's,who%20is%20younger%20than%2065.

#98 TurnerNation on 10.21.20 at 11:11 am

The CV insanity aimed at destroying our way of live and businesses, continues. For years on here I’ve said that they want us back to the stone ages. With the new green deal all we may afford will be the rickshaws and bikes

In my UN-controlled zone you cannot eat inside this winter in the heat. Indoor heat and plumbing? No. too deadly, you might contract an illness. You know, the one which no flight attendants or walk-in clinic doctors got or perished from, despite them seeing 1000s of people in close contact each week earlier this year.

No you must huddle outside in unheated pods and thermal blankets! A cold winter Comrade. No wonder they sold us so hard on Ghost Kitchens for food delivery last year. The plan.

All fun removed in New System. No more food buffets, they always had sneeze guards but you might contract a respritory illness from eating food! Did you ever before?
No in-flight service. A masked person handing you a snack – you might get sick! Sit there, eyes forward mask on Prison plane style. No talking either This is the beast Prison System and it’s not going away.

https://www.blogto.com/eat_drink/2020/10/toronto-neighbourhood-giving-away-free-blankets-outdoor-patios/

https://www.blogto.com/eat_drink/2020/10/toronto-restaurant-tent-pods-outdoor-patio/

#99 IHCTD9 on 10.21.20 at 11:39 am

#77 Buy? Curious? on 10.21.20 at 1:21 am

…How about we jail CEO’s, dirty cops, gah
——

I think they still do stuff like that in the USA, but here in Canada, CEO’s can just call up Trudeau to have problematic Attorney Generals removed from office if it looks like they might have to stand trial for a crime.

#100 Dr V on 10.21.20 at 11:49 am

98 LTC – Thank you!

#101 Squire on 10.21.20 at 11:50 am

November in the USA will be very interesting.
https://www.aljazeera.com/news/2020/10/20/republicans-see-bright-spot-in-2020-voter-registration-push
Get the popcorn and slippers out

#102 Penny Henny on 10.21.20 at 12:20 pm

#55 SoggyShorts on 10.20.20 at 8:21 pm
#51 Love_The_Cottage on 10.20.20 at 7:56 pm
RRSPs (like tax-free savings accounts) are not products or things, but just accounts into which you can dump different investments. Growth is tax-free…
____________
This is factually incorrect. Growth is tax-deferred, not tax-free in an RRSP. You pay tax at the appropriate rate when you withdraw the money.

Maybe. – Garth
********************************
If you are clever about it and withdraw a combination of TFSA, RRSP, and some non-reg in early retirement you can slip under 5% income tax. Actually zero is possible, but usually not practical.

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

Wife and I came in at under 3% last year and that is without the old age credit.

#103 Jake on 10.21.20 at 4:18 pm

Is the 34% drop the average? When to vulch?