Careful what you ask for

An addendum to yesterday’s tale of cowboy capitalism, boomeresque youth and hot wheels. Besides starting a business and buying a giant hunk of steel and displacement, Dorothy and I also built a home four and a half decades ago.

Granted, it wasn’t much. We got the lot for peanuts, since it was a bald knoll in the corner of a field in the middle or rural, godforsaken nowhere. The siding was nauseous green aluminum and inside the subfloors were covered in cheap wall-to-wall carpet. But it was ours. And it cost $63,000.

We managed to wrestle up the downpaymnt of 10% (double today’s requirement), and were happy to get a mortgage. But being self-employed we faced a higher rate than the normal 12%. Also uninsured, it came in at 13.5%.

In those days high rates kept house prices down. They dampened speculation, too. Real estate was for living in, not flipping. It sure wasn’t a retirement strategy. Or even a wealth-builder. So, yeah, most working couples could get a house somewhere. In a field, maybe.

The distortions came later. Politicians thought they’d ‘help’ by letting people use RRSPs for down payments, by dropping the deposit requirement (all the way to zero for a while), by allowing extra-long mortgage amortizations, plus giving first-timers grants and tax credits. Then when a long secular decline in interest rates began, capital requirements were eased at the banks allowing them to loan more for less.

Real estate values popped higher and it took only a decade or so for houses to turn into financial assets. The first super-boom reached its apex in 1989. Then a recession. Then it began anew. Canada even  escaped the US housing meltdown in 2005-6, paving the way for the next FOMO-driven property orgy when the cost of money collapsed in 2009. Now the emergency rates of Covid have taken us to an entirely new place.

I mean, gaze at this. A semi in the GTA hinterland of Pickering was recently listed for $850,000 and sold for $1.035 million. Yes, half a house. In the eastern sticks. A mill. We have lost our way.

A report using data from StasCan, CMHC, CREA and RBC spells it out clearly. Of the largest 50 communities in Canada, almost 40 are seeing deterioration in the ability of average people to afford average houses. Yes, despite 1.5% mortgages – and also because of them.

Cheap money has fueled asset inflation while not having the same effect on wages. In the decade between 2010 and 2020 properties in Toronto, for example, jumped 104% in value while household incomes grew by less than a third – just 32%. While pro-real estate government policies have fueled part of this appreciation, most has come from the ridiculous cost of money. The inverse relationship between the cost of a roof and the cost of a loan has never been more evident than now, with mortgage rates at the lowest point in history.

There’s only one way out. And it will be painful.

Interest rates may be rising faster than anticipated, some economists say. Despite the iron grip this slimy little pathogen has on our lives, despite the variants, the lockdowns and the crappy, bungled vax roll-out, the economy is gaining strength and CBs may withdraw stimulus way before the anticipated date of 2023.

When could things start to change? Maybe as soon as April. Especially if the first Chrystia budget brings in another whack of spending, allowing the Bank of Canada to throttle back on emergency rates. There are, says Scotia’s Derek Holt, “potentially strong policy implications for the Bank of Canada that is increasingly looking as if it over-committed itself to keeping rates on hold until 2023. The prudent thing to advise heavily indebted Canadians is to plan their finances around rate hikes commencing considerably sooner.”

You may not want far higher mortgages now, kids, but without them you’ll be indebted your entire lives. And you will envy us. Wrongly.

*      *      *

If you believed the Reddit/Hoodie mob and bought GameStop stock on Friday, well, suck it up. They got you. HL&S. The loss yesterday was over 30%. Another sixty today. What was $470 is now $100. Soon it may be half that. The AMC blitz fizzled, too. Same with silver.

Read the three posts on this topic published here last week – two by my hand, one by Ryan’s. What social media and a trade-for-free app did for a few stocks was not a revolution. It was not the democratization of finance. Nor was it a righteous rebellion of the little retail investors against the fat hedgies and Wall Street oinkers. It was merely the latest iteration of a classic market manipulation pump-and-dump, cloaked in social outrage and designed to profit the few while leaving the many poorer than they were before they heard about r/wallstreetbets.

If you get your investing ‘advice’ from a chatboard of avaricious self-named ‘degenerates’, ‘autists’ and ‘retards’, prepare to be fed lies and relieved of your money. As the SEC and other regulators will doubtlessly conclude, using crowdfunding and false flag information to purposefully inflate an asset’s value is a crime. Activities like that threaten market integrity. And, yup, there’s still a heap more of that in the blackest of broker hearts than all the manbuns of a million Hoodies.

Gambling is not investing. And they are not cool.

190 comments ↓

#1 EnnDeePea on 02.02.21 at 3:06 pm

#62 cuke and tomato picker on 02.01.21 at 3:44 pm
Once again a great post. Enjoy the posts as while as the comments. Did you meet your wife at university?

No. In a rock band. Another story. – Garth
————-
you were her groupie?

#2 X on 02.02.21 at 3:07 pm

Here’s to hoping rates rise. I can’t believe how some are committing to such debt, just to ‘own’ a house. Crazy.

#3 Westcoaster on 02.02.21 at 3:09 pm

Watching this play out,here on the west coast.
Real estate prices are just nuts,Dark days ahead.

#4 meslippery on 02.02.21 at 3:13 pm

The average household income in the mid-70s was just over fifty grand.
—————————

That seems really high I note you said Household but look here.

annual average salary for full-time employees is just over $54,630 per year in 2020

https://www.jobillico.com/blog/en/the-average-canadian-salary-in-2020/

#5 crowdedelevatorfartz on 02.02.21 at 3:14 pm

Are you even allowed to say retard anymore?

#6 Oakville Rocks! on 02.02.21 at 3:14 pm

Sorry, I am late to the party as my comment applies to yesterday’s post (mostly)

Garth, I love this story, even abbreviated as it is. I was just looking at your books on Amazon and it is interesting that you have never written a business/entrepreneur book given the number and variety of business you have started and then sold.

I would buy such a book.

Also, have all your ventures worked out so well. It would be great to read about the failures as well.

To the others here, share your stories but don’t use them to brow beat others. What worked for you might work for someone else, it might not. Just because your path lead to success does not give you license to lecture others on their failure to follow it.

It’s not possible for the youngsters to know what it was like in the 70’s/80’s/90’s starting a family or business and it is not possible for the oldsters to know the pressures/life of people trying to start a family/business now. Maybe try some empathy or as Otis put it.. Try a Little Tenderness!

Until you have a walked a mile in someone else’ shoes…

#7 Trump won on 02.02.21 at 3:15 pm

Trump 2.0 coming in 2024 like it or not.

Biden will be in an LTC long before that..loool

#8 Divv on 02.02.21 at 3:18 pm

Folks, just remember that by the time you read about these things it is already too late for you. Also, it is aptly named ‘r/wallstreetbets’, so you somewhat deserve what you get when blindly following “advice” from there. Browsing the ‘front page’ of Reddit ought to form enough due diligence to press the eject button, one would think.

#9 Bartman on 02.02.21 at 3:20 pm

But Casino Rama is closed.

#10 Mr Happy on 02.02.21 at 3:20 pm

So what’s to stop those hedge funds from shorting the crap out of GME and AMC when they peaked? Gonna make a lot more shorting from $350 than from $20…

Call it a life lesson for those millennials. I’ve had a few of those in my lifetime.

and Garth, sorry about the Calgary, lady, covid thing… turns out she had taken an unapproved test so the CASB and RCMP did exactly the right thing. A little callously but there you go….

#11 Franco on 02.02.21 at 3:23 pm

The world has gone nuts. I bought an RV trailer today and had to beg for someone to take my order and forget about haggling, they tell you what you will be paying, if they have the time to call you that is.

#12 Jenny Decourte on 02.02.21 at 3:24 pm

I know Garth you don’t like GIC’s that much if at all but even I am agreeing with you that very low interest rates are getting out of hand and are really are out of control. The whole cutting interest rates to stimulate the economy is ridiculously run it’s term and is way over due to due dialed back and much higher in coming years.

It is distorting and making everything way out of whack from real estate to bond prices and giving alot of excuses to tax everyone more and make most Canadians cost of living high from rents to electricity to utility to property taxes, food prices etc. etc.

GIC’s with even 1% to 1.5% inflation these days which I am not the only one thinking really inflation is that low, come on. It looks terribly understated for the least, and GIC’s should be 2.7% to 3% on 5 year money.

Now with even 10 year GIC’s that are CDIC insured at most 1.5% to 2.0% at Canadian financial institutions is being kept ridiculously down by the Bank of Canada now owing 30% of all Canada bonds, Canadian government debt which is really our debt n matter what Federal Liberals, Trudeau keep saying.

These should be at least 3.5%+ for 10 year GIC rates and mortgage rates should be in the 4%+ range at least these days or in coming year or two.

#13 Cto on 02.02.21 at 3:25 pm

Garth, how do you know that the BoC isnt just going to fudge the cpi, …again , and make believe that Inflatiron is 1.9999%. Who cares if a bag of potatoes is $20. As long as rates are in the ditch and housing (the only industry left in canada) keeps rising, they have accomplished their true mandate.
The credibility of central banks is 0.

#14 highlander101 on 02.02.21 at 3:29 pm

Response to #4
Hopefully not…..sad word that is often used to mock those that did not win the real birth lottery…being born healthy.

#15 SunShowers on 02.02.21 at 3:29 pm

“The average household income in the mid-70s was just over fifty grand.”

50 grand adjusted for inflation since 1975 would translate to a household income of over 220 thousand dollars in 2018. Why are the actual household income figures for 2018 less than half that amount?

“The loss yesterday was over 30%. Another fifty today. What was $400 is now $100. Soon it may be half that. The AMC blitz fizzled, too.”

Whomst amongst us could have predicted that stock prices would go down when people are literally prevented from buying those stocks? Extremely fair for you to leave that bit of information out, Garth. Your history as a newspaper editor really shining through on this.

No trading stops today and the stock dropped 50%. So much for your theory. – Garth

#16 Triplenet on 02.02.21 at 3:32 pm

Just imagine – ground oriented condominium ownership for $1.035 million.
What’s next?

#17 Inequity on 02.02.21 at 3:34 pm

#5 crowdedelevatorfartz

Used to be that retard is something you did to the timing and tranny was attached to the motor. ;)

#18 Oakville Rocks! on 02.02.21 at 3:34 pm

“If you get your investing ‘advice’ from a chatboard of avaricious self-named degenerates, autists and retards, prepare to be fed lies and relieved of your money.”

Not sure about this sentence. I hate when adults use the word “retard”.

And whenever I hear “half a house” to describe a semi I think of an ex-girlfriend who grew up in the hardscrabble part of Winnipeg. A single mom, she came to Ontario to get an education and worked for the feds in a government town. Her first house was a semi and when she took possession she proudly took pictures to send to her mom back in Winnipeg. Her mom’s comment – you only own half a house.

We don’t get to choose our families but some of us are blessed with families that build us up rather than tear us down.

I clearly stated that the board users are ‘self-named’ and that is the term many employ. – Garth

#19 SCD on 02.02.21 at 3:39 pm

Great post thanks for your insights. I would suggest omitting the word retard as it is very insensitive. As a parent of a special needs kid, it’s hard to look past it.

As stated, it is what the users call themselves. Go dump on them. – Garth

#20 S.Bby on 02.02.21 at 3:46 pm

Cheap money is destroying our economy on so many levels. I can’t fathom what these central banks think they are doing by supplying an endless stream of free money to an already indebted population. total moral hazard with a completely irresponsible disregard for the future just so they can keep their ponzi scheme going awhile longer. We can’t spend our way out of debt.

#21 Sara on 02.02.21 at 3:47 pm

Wow. Preferred shares are on a roll. DXP over 20 today. Finally.

#22 SunShowers on 02.02.21 at 3:48 pm

“No trading stops today and the stock dropped 50%. So much for your theory. – Garth”

The limits aren’t coming from the stock market stopping trading, it’s coming from retail investor platforms like Robinhood, TD Ameritrade, Cashapp, WeBull, Charles Schwab, Interactive Brokers Group, E*Trade, and others LITERALLY PREVENTING people from buying shares in these short-squeezed stocks, even with cash (no margin).

Again Garth, some basic research would have served you well here.

Actually I know. The ‘trading stops’ referred to were not imposed by the market (of course) but by platforms that could not settle the trades because they lacked the funds to clear them. It happens. No conspiracy. But today, as stated, trading was wide open. And GME crashed. Like I said, so much for your theory And try not to always sound like a dick. – Garth

#23 Dave on 02.02.21 at 3:49 pm

The virus has changed now we must go to zero…
Andrew Nikiforuk, who wrote two books on pandemics talks about the incompetence of the Federal and Provincial governments in the handling of the pandemic.

https://thetyee.ca/Analysis/2021/01/28/Virus-Changed-Get-To-Zero-Face-Catastrophe/

#24 Ustabe on 02.02.21 at 3:51 pm

My first owned house was within walking distance to the University, just off what was called Five Corners, a shopping area and at the top of a bridge that took you downtown in 2 minutes.

2 bed, 1 bath, corner lot with detached garage. Plenty of room for both a back yard dog and a garden. Hot water radiators kept us warm in Saskatchewan’s longest winters.

This was back when you couldn’t get a mortgage from a credit union due to regulations so I had a “loan on real property” via the Teacher’s Credit Union on campus. $195 per month, principle, interest and property taxes included in that.

Bought the place for $22,000, took the CU loan just to establish some credit. Luckily we were in a position to pay out the balance when interest rates hit the highs. I do recall my CU offering certificates of deposit at 18% though.

This loan had an interesting term in it…starting at just over $10,000, paid down to say $8,000, you could access the $2,000 difference at any point without penalty or paperwork. Sort of like a built in line of credit. That is how I got my first hole in the wall pizza joint and (separately) a laundromat.

Sold it to a crowd of the Baha’i Faith for cash when my girlfriend finally finished her University. Now wife. Of 45 years.

This old fart reminiscing is fun. My first car was a Hudson Hornet. I guess I’m older than most. But I still pee in a straight line and recently passed a thorough physical with flying colours.

And its obvious my metal health is significantly better than many who post their hate and insecurity here daily, hourly it sometimes seems.

#25 Billy Buoy on 02.02.21 at 3:51 pm

Interest rates “MAY” rise up.

What is the alternative if they don’t? SEE JAPAN.

Once the swell of boomers start dying in 10 years, MAYBE.

Until then interest rates have no where to go. NO WHERE.

If they lose control and do pop, let’s see how the gov’t feeds and houses the masses not prepared, sitting at what about 60% now. NEVER GONNA HAPPEN.

NEVER. EVER.

#26 highlander101 on 02.02.21 at 3:52 pm

response to #19
agree with you, tough word to hear being thrown around so lightly. like most things in life I guess, unless it affects you personally the depth of it is not fully comprehended.
I understand Garth, you were just quoting them…no beef with that other than it unfortunately keeps the word in circulation.

#27 Faron on 02.02.21 at 3:52 pm

#15 SunShowers on 02.02.21 at 3:29 pm

No trading stops today and the stock dropped 50%. So much for your theory. – Garth

People complaining about Robinhood downtime or trading halts during this series of unfortunate events are akin to someone dumping 300lbs of molten fondue down the icy cold pipes of a free hotel room’s toilet and then complaining that the plumbing is clogged or that the toilets were rigged against them. No, you have toilet water on your floor because you did something dumb even if it wasn’t expressly written out on the walls of the bathroom.

For the record, there were trading halts on GME today at the exchange level. De rigueur for explosively volatile trading in single names or market wide.

#28 LostMillennial on 02.02.21 at 3:52 pm

If a townhouse/semi is going for $1M in GTA? Where do prices go from here?

#29 Amok on 02.02.21 at 3:53 pm

Garth,

With respect, housing prices won’t be going down.
You’ve been ‘predicting’ this for years now, and there has been only slight reductions in SOME markets. A global pandemic and recession only pushed prices higher. The rules of economics have morphed and been distorted, proving that economics is not a science but rather just an agreed set of beliefs and ideas. The game has changed.

Once Covid is over there will be a large increase of immigration into Canada, which will further bolster the market. Prices will go up further still and Canada will be one of the most expensive countries to buy real estate in the world.

You will never see prices fall or rates rise significantly enough to cause any type of serious correction… Not in your life time.

#30 Guy in Calgary on 02.02.21 at 3:55 pm

Pretty telling.

Median household income in the 1970’s 50k.

Median household income 2020 $91,600.

If wages kept pace with inflation (assuming 2%), average household income should be $134,579.40.

#31 bdwy on 02.02.21 at 3:56 pm

for those who have not bothered to look at WSB , look at it first before bitching about this blog’s word choices.

and for those same people, you wife’s boyfriend says hi.

i may buy 10 shares here!
———
btc seems like the big bubble. what about the funds/orgs/banks saying it has value?

#32 Blobby on 02.02.21 at 3:57 pm

@#29 Amok :

How prices have dropped many a time while Garths blog was going. You just havent been paying attention.

#33 Billy Buoy on 02.02.21 at 3:57 pm

You may not want far higher mortgages now, kids, but without them you’ll be indebted your entire lives. And you will envy us. Wrongly.

Um, isn’t that the whole purpose of banks to keep you a debt slave for life? C’mon Mr. Turner, you KNOWthis is the program for a majority of the world. Why cover for the banks? Vested interest? No pun intended.

Look at price inflation over the past 30 years compared to wage inflation. Everything of value UP, wages FLAT.

Just like the banks love it. Gee, wonder how they manage fat, juciy profits year in year out? Please.

#34 T-Rev on 02.02.21 at 3:58 pm

As I stated before, new regulations aren’t needed to combat Hoodies, and we will have forgotten this by March. The ones who will remember are the ones who got burned: HFs that got overzealous on some shorts and lost at their own gambling game (live by the sword, doe by the sword, I’m afraid), and the fools who followed the pump and dump WSBs kiddos. Both will learn. And the market may well regulate itself better for it, without intervention. I hope.

#35 Pete on 02.02.21 at 3:59 pm

Everyone is fixated on real estate and what it costs now versus then in the 70s or 80s against income. There are so many variables. No electronics toys to fill the brain with bull#@!& thank God (you can lump smart phones into that category). One vivid reminder for me was saving for months to buy a basic calculator for $50 which was a requirement for math in college. Take away real estate and everything is as it should be. So just rent and save until the world settles and RE prices correct. We are not in a normal world. If covid hadn’t hit, we would have been in a small recession with RE already trending downward.

#36 Dolce Vita on 02.02.21 at 4:00 pm

“They got you. HL&S.”

A few of them mentioning their hard luck story on Twitter = sour grapes late entrants (bottom of the Pyramid – did not get the memo in time from the top of the Pyramid to sell, doubt they would have ever gotten the memo).

From what I can glean in Twitter feeds today, next 2 “targets” MAY be (w/o mentioning names and not advocating here, just observations):

1. A streaming service (not Netflix).
2. A weed grower.

It seems they (top of the Pyramid) put that “out there” with names, try to build enthusiasm or something like that and away they go from there.

To track the machinations in Twitter (as many of you will know, if not try it) take the Ticker Symbol, put a $ in front of it and search in Twitter to read the “buzz” (e.g., $AMC, $GME, try those 2…and read the acrimony). The “buzz” typically accompanied by a dozen or so Rocket and Fire emojis. Do no select Twitter suggestions when you do this, just type, e.g., $AMC, and hit Enter.

Also on Twitter there is @redditinvestors but not convinced they are the brains behind any stock manipulation – just talk or the desperate holding a plummeting stock and hoping the Hoodies pump its value up for them.

Using the above I knew Silver was their target 2 days ago and also knew it would fizzle out. So, some method to madness to what I wrote above. Use common sense goes without saying.

—————————————-

CRAZY stuff but most of them are adamant about about what they are doing Garth, with a Missionary Zeal.

Caveat Emptor.

#37 Another Deckchair on 02.02.21 at 4:04 pm

“Used to be that retard is something you did to the timing and tranny was attached to the motor. ;)”

Or, if you are BillyBob, it’s the part of the “fly by wire” system telling the pilots to reduce thrust. to idle.

#38 David on 02.02.21 at 4:07 pm

BoC = HOMEWRECKERS

#39 BillyBob on 02.02.21 at 4:09 pm

Yep. My folks bought their house in Victoria in 1966 for $13,500. The asking price was $15,000 but it needed a new furnace and the sellers agreed to lower the price if my folks would put a new one in.

Homes in the neighbourhood with lots a fraction of the size are currently selling for $1.5 million. Ah well! Uvic TA’s make lots of money.

@ Faron, how is it awkward to offer to introduce you to potential surrogates when I honestly thought sometime back it had been established your partner was same-sex? And who really cares these days? Weird comment to be honest.

I like Keen Reader. Unlike yourself, he at least has a sense of humour. As well as mad Google skills! He was a bit vague, I called him on it, and he acquitted himself nicely. Where’s the problem?

But IHCTD9 has it right – if you’re gonna have a kid, you’re going to have to find a way to relax a bit, maybe not post angry 27 times a day here for a start? If you think people here don’t agree with you, wait until you spawn a replicant.

From your use of nerdspeak like “grok” I assume the “science” you associate with is computer science? I hope so for your sake, for that would at least explain your painfully simplistic, binary view of the world. You’re going to need a way to deal with that – your world is about to get much, much more complicated with children.

Oh, and it was “PM Punchable-Face”. Don’t get all excited. It’s only an observation of the indulgent sulky frat-boy expression he wears constantly. I’m sure he can’t help it, like people with resting bitch-face who are actually very nice. He’s just a product of his upbringing. And it doesn’t mean I wish any physical harm on him at all, only that he’s the textbook definition of that adjective. I would have thought such a keen student of pop culture would have known all this.

Ta ta, and remember, stress lowers the swimmer count.

#40 Adam on 02.02.21 at 4:10 pm

FYI, they call themselves autists and retards because that is what people have called them and they are calling themselves it in a tongue and cheek way. Basically embracing it, as if to say “Well, if a retard is someone who turns $100k into $10 million then I guess I am the most retarded person ever”. Let me ask you something Garth. Why is it so important to most “boomers” that people KNOW how hard it was for them growing up. Your post tells us of the struggles you had. No doubt, you had them. But why is it important for you to tell us that? You’ve won the game. You are the most privileged race, privileged sex, and you live in the most privileged country in the world. You are a 1%er. Yes, you’ve won. No need to point it out. No, not everyone can do what you did if they “work hard enough”. If you believe that, then you’re not being fair. Let me ask… if the world were redistributed today… let’s say god came down and put all 7 billion names in a hat… and then he drew them 1 by 1 and you were assigned a role that currently exists in the world, would you want the world to look the way it does now? Keeping in mind you’d have about a 1 in 10,000 chance of getting your current spot. The odds are you’d probably draw “Poor person in Africa” from the bag. No… if that were the case, you wouldn’t want the world to look like it does. You’d want to be more even. Right now we have a world where the richest person has 100 lambos, 10 yachts, 5 planes, 50 houses, 10 private islands… you get it… and the poorest person can’t afford a single loaf of bread and is starving to death. TOTALLY UNREASONABLE. And if people like you (a former polititian with a very popular blog and enormous wealth) can’t fix it, then what hope do normals like us have? I think that most “millennials” want a world where the richest person owns maybe 1 yacht, 1 plane and maybe 2 or 3 houses. And the poorest person owns a small little hut with a little garden and maybe a few goats. Doesn’t that seem more fair? Call it socialism, call it whatever you want. But it is DEFINITELY anti-capitalism. And you, sir, are pro-capitalism. Do you ever think about changing your views, or are the cemented in place?

I give you a free blog and daily advice on bettering yourself. And you bitch. – Garth

#41 Captain Uppa on 02.02.21 at 4:10 pm

It used to be that if you bought in 2014, you were good. Now it’s if you bought in 2017, you’re good. I wonder what they will say in 2024 if you bought in 2021.

#42 Jem on 02.02.21 at 4:11 pm

CDN RE was slowing down before covid.
Prices now just happen to be even more artificially inflated than they were before. Granite counters, tile floors, hardwood, built in custom shelving, heated outdoor patios – none of these features can hide the fact that most houses are still just wood, chemicals and trimmings on a lil piece of land.
Cheap money doesn’t scrutinize.

#43 S.Bby on 02.02.21 at 4:15 pm

#22 SunShowers

Re. GME :

More half the shorts are covered and gone so the stock is dropping like a rock. As far as the trading restrictions were concerned, that’s what happens when someone deals with an undercapitalized trading platform that can’t support their business properly.

#44 Dolce Vita on 02.02.21 at 4:17 pm

“There’s only one way out. And it will be painful…CB’s…”

Or we get an EPIC depression, you know one of those unforeseen economic shocks like say a: Global Pandemic.

A depression on top of a Global Pandemic.

Never say never.

Heck, all it would be is just another Covid-19 day on Planet Earth.

—————————–

Speaking of yet another Covid-19 day on Planet Earth:

BAD
• Captain Tom passed away today in the UK, Covid got him. RIP. You were an inspiration to say the least Sir.
• UK variant has morphed into the S. African variant. I KID YOU NOT. And it’s making vax’s less efficacious including Moderna’s (nothing from Pfizer yet but they are the same type of vaccine as Moderna, main difference is the lipids coating):

https://www.bbc.com/news/health-55900625 (UK morph)
https://www.bbc.com/news/health-55797312 (Moderna, 3rd jab needed?)

GOOD
• Canada inks deal to produce Novavax COVID-19 vaccine (NICELY DONE Mr. Prime Minister, indeed – and yes, I tweeted him with Congrats). No timing as to when we will see production doses out of Canada by: UofS Vaccine and Infectious Disease Organization, 40M doses/yr? and Precision NanoSystems, 240M doses/yr? Novavax not approved yet but you know, I think it will be (no dung Sherlock, Capt. Obv).

https://globalnews.ca/news/7613878/covid-made-in-canada-vaccines-agreement/

“Optimism the economy will quickly accelerate once the pace of vaccinations picks up” AND Canada can now deliver its own brand of “Covid-19 delenda est”.

Now, wouldn’t that be something!

#45 Jake on 02.02.21 at 4:19 pm

Rates will rise after the economy gets to fully open for business, April will still have restrictions in place as more than half of the population waits for their first shot. Most likely I see a rise after the Libs take a majority.

#46 Joe Schmoe on 02.02.21 at 4:19 pm

CMHC used to have a max house value cap of $250K…as it was supposed to be for starter homes and first time buyers…the cap was removed as it “impacted free market” blah blah blah.

$250K in 2000 is about $350K in 2021 accounting for inflation.(~41%)

Imagine what keeping that CMHC cap married to inflation would have done to housing prices.

#47 Ponzius Pilatus on 02.02.21 at 4:20 pm

I’ve seen ads by Robinhood.
Join the club and get one free stock pick.
Just guessing, but the pick will have to be from the 3 Reddit stocks.
I’m sure they have lots of them lying around now.
Have to say that was a short and painful lesson for suckers trying to game the market.
Should have learned it on the playground:
Don’t touch the nice toys of the older kids.

#48 Joe Schmoe on 02.02.21 at 4:22 pm

Garth’s on fire with comments this week!

It’s like watching that person heckle the comedian on stage…

#49 SunShowers on 02.02.21 at 4:22 pm

#30 Guy in Calgary on 02.02.21 at 3:55 pm
If wages kept pace with inflation (assuming 2%), average household income should be $134,579.40.

No need to assume, my man! You can use this handy calculator from the Bank of Canada and get the exact numbers!

https://www.bankofcanada.ca/rates/related/inflation-calculator/

Spoiler alert: Average household income in 2020 should be over 225k lol.

#50 Blacksheep on 02.02.21 at 4:22 pm

Should have told us a nice love story about whether his better half played lead or base, but instead doubles down on the robin hood crap.

Que the fireworks.

This isn’t going to end well…

#51 Prince Polo on 02.02.21 at 4:24 pm

https://m.youtube.com/watch?v=6Kgs8zpS3F0

*SPOILER ALERT*
Ironically, robbing Wall St of all of their hidden gold bars! Die Hard With a Vengeance

#52 Ponzius Pilatus on 02.02.21 at 4:26 pm

The tide went out and we found out who was swimming without shorts.

#53 TurnerNation on 02.02.21 at 4:27 pm

What’s going on with the economic takedown?

UK, England – in the news aka Predictive Programming (there is no longer real news) – is hinting their economic shutdowns will be extended till June/July. Of course.

Here’s Ontario – setting us up for the UBI? The new goalposts are, you cannot earn a living because the ICU might have many senior citizens (my assumption?) in it. No field hospitals, no expansion. Small business, welcome to your goal post. Try harder!! Always new variants.

https://outline.com/Wf4cWe
Ontario businesses will stay locked down until COVID-19 patients in ICU drop by more than half
ROB FERGUSON FEBRUARY 01, 2021
Ontario has identified its first case of the more contagious South African variant of COVID-19

—- RIGHT ON SCHEDULE for Q1. Regional checkpoints. Here comes the soft sell/predictive programming. Ah yes the variants did this

https://www.cbc.ca/news/canada/sudbury/northern-ontario-checkpoints-greater-sudbury-brian-bigger-covid-19-variants-opp-1.5896011
“Sudbury mayor wants to see OPP checkpoints to discourage travellers coming north
‘With the COVID-19 variant now appearing in Barrie, that is far too close to home for any of us to rest easy'”
……………..

Government messing with businesses. Think Food price inflation, costs passed on.

“Kroger, the parent company of Ralphs and Food 4 Less, will soon shut down two of its stores in Long Beach in response to the city imposing a “hero pay” increase of $4 per hour for some grocery store workers.
“Kroger, which issued a $2 pay boost at the start of the pandemic, noted that it has already spent about $1.3 billion to reward associates and implement dozens of coronavirus-related safety measures since March,”



So what’s the next economic weapon to be unleashed upon us? Heard first on this pathetic weblog, now elsewhere:

“Bank of Nova Scotia economist Derek Holt says the BOC is “increasingly looking as if it over-committed itself to keeping rates on hold until 2023.” He says, “The prudent thing to advise heavily indebted Canadians is to plan their finances around rate hikes commencing considerably sooner.”
© 2021 Canjex Publishing Ltd. All rights reserved.”

#54 meslippery on 02.02.21 at 4:27 pm

Two people making $500 a week would be 52k
not too many people making that kind of coin in the mid 70s

#55 Oracle of Ottawa on 02.02.21 at 4:29 pm

It’s funny. A pump and dump scheme under the guise of “sticking it to the man”. How ironic.

#56 Don Guillermo on 02.02.21 at 4:35 pm

#43 S.Bby on 02.02.21 at 4:15 pm
#22 SunShowers

Re. GME :

More half the shorts are covered and gone so the stock is dropping like a rock. As far as the trading restrictions were concerned, that’s what happens when someone deals with an undercapitalized trading platform that can’t support their business properly.
*************************************
A quick look at the 12 month chart sums it up.

https://www.bnnbloomberg.ca/stock/GME:UN

#57 Calgary Rip Off on 02.02.21 at 4:35 pm

It is funny how the internet data chain has changed thinking. Increasingly I focus on being harder on myself, not others. I want more responsibility not less. Today there was an event involving gathering various oxygenation levels in the heart to disprove that the patient had a shunt. I normally put the numbers in the computer and examine them with raw math calculations post procedure. While the person doing the oxygen calculations did show the doctor the numbers which he approved, it was my fault that I assumed that him saying the numbers were correct was in fact the case. Initially I thought it was the doctors fault and subsequently the entire shunt run was thrown out, with no recourse, the study was botched. Reflecting later, I realize now that despite the doctor approving the numbers, I shouldve asked at the time rather than assuming that he was in fact paying attention when he was not. This is a difficult skill to have a mindset to be able to be fully in the moment and not blame others.

Increasingly this planet requires a non committed mindset open to adaptation quickly. It seems that the covid 19 has roots in a lab. It also seems that patient response to both infection and vaccination is not one size fits all. What is also unclear is the objectives in government in lockdowns for purposes and long term financial results in doing so.

It seems that there are some here that are very upset and rightly so and willing to lash out at Garth here. It is far easier to do this than use frustration constructively. Increasingly I look at objective behavior and facts rather than wasting energy on judging other people. Ultimately what I think about what anyone thinks or does is irrelevant. It is far better to be focused on results.

Therefore, facebook, twitter, conventional media, instagram are all considered possible propaganda.

The time machine feel of this current post is good. I like it. I need a time machine. Back to 1984. And stay there.

#58 Shirl Clarts on 02.02.21 at 4:36 pm

#11 Franco on 02.02.21 at 3:23 pm
The world has gone nuts. I bought an RV trailer today and had to beg for someone to take my order and forget about haggling, they tell you what you will be paying, if they have the time to call you that is.
^^^^^^^^^^^^^^^^^^^^^^^
They got you – HL&S.
Why could you not wait until Sept 2021? Prices will be half of what you paid.

#59 Trump Lost on 02.02.21 at 4:40 pm

#7 Trump Won

He won in that he convinced the likes of you (and millions more) that he’s a successful businessman and politician – he is neither.

he is a loser and a failure — and hopefully not a reflection of yourself.

#60 Moose on 02.02.21 at 4:42 pm

…we faced a higher rate than the normal 12%. Also uninsured, it came in at 13.5%….

Garth,
When the mortgage rates where that high or even higher one would get 10, 11, 12 % return on a regular savings account from the banks.
Many folks thought this was the norm and would retire thinking all is well for years to come. We all know that it was just temporary until reality kicked in.
Just like the now generation thinks that 1.5% is the norm and it will be like this forever.

Good luck with that :0)

Stay save and healthy Garth and the Blog Dogs

Savings rates hit a peak of 14% in the summer of 1975. Yes, this attracted some capital out of real estate and into liquid assets. – Garth

#61 Reximus on 02.02.21 at 4:44 pm

I always thought a free market would promote suppliers to increase production to meet strong demand, where possible. That SD in Pickering could be built and sold profitably for far less than 1.035m…where’s the supply?

#62 The West on 02.02.21 at 4:45 pm

For all poking holes in Garth’s use of the word “retard” – this is how most of the r/wallstreetbets refer to themselves as…

#63 BK on 02.02.21 at 4:48 pm

A lot of sugar plum fairies commenting tonight. Garth was quoting a word from Reddit. Get over it! The words “White privilege”, drive me crazy. Maybe I should just get over it too…

#64 James Douglas on 02.02.21 at 4:49 pm

Where does this runaway housing market end? Can the market continue disconnected from its underpinnings? Will fear of missing out ever be replaced by fear of holding the bag?

#65 Reximus on 02.02.21 at 4:53 pm

off-topic but, below is an election ad by John Crosbie’s son Ches, PC leader in NL and it’s pretty refreshing!

https://twitter.com/ChesCrosbie/status/1356635845458067463?s=20

#66 Faron on 02.02.21 at 4:54 pm

#39 BillyBob on 02.02.21 at 4:09 pm

@ Faron, how is it awkward to offer to introduce you to potential surrogates when I honestly thought sometime back it had been established your partner was same-sex? And who really cares these days? Weird comment to be honest.

Wow, you’ve even gas-lighted yourself, impressive. Sorry, you can’t dig yourself out of a hole friend, but do try to keep up.

Keen Reader…Where’s the problem?

The problem is that you, as I have to others admittedly, assumed the worst of him only to get called out and look like a doofus jumping on the acronym bandwagon and claiming alpha.

But IHCTD9 has it right…relax a bit

That was Sailo actually. Regardless, arguing strongly and annoyance are not the same as anger and violence.

nerdspeak like “grok”

You need to update your nerdspeak. These days it’s all full-stack, client-side, react, nosql, JIT, agile… etc. And I’m behind the times. The real nerdspeak for me is “grep” as in the linux/unix command. Grep, then grok and before you know it your have a gestalt.

I assume the “science” you associate with is computer science?

You know what they say about “ass-u-me-ing”, right? Certainly not going to tell you what I do other than it’s not at all CS/CE. I’ve had the pleasure of working with CS people and they are brilliant. I couldn’t hold a candle to them in what they do. But, I do spend time understanding the machines I use because it helps when crunching massive amounts of data. Just as you probably spend time understanding the machines you use.

about to get much, much more complicated with children.

Sorry, I’ll take parenting classes from SA — who actually has kids — or IHCTD9 — who both has kids and is an affable fellow –long before I will you. And if I’m wrong about your child rearing, let us not harken back to earlier when you indicated that childbearing is a crime against the planet. And why would you bring your friendly ladies into the picture of planetary destruction? At the very least, I hope you hold them to the same bitter standard you do yourself.

Tired of clipping holes in your logical punch card. Goodnight.

#67 wallflower on 02.02.21 at 4:58 pm

ponzi-schematically speaking, it is pretty much ALL just caveat emptor
CAREFUL WHAT YOU ASK FOR
do you see the Questrade ads where they conflate ‘free trades’ with wealth
really… by trading with no fees you get wealthy…
really?
those ads are ridiculous, misleading, blah blah blah

#68 Dogman01 on 02.02.21 at 5:00 pm

“The prudent thing to advise heavily indebted Canadians is to plan their finances around rate hikes commencing considerably sooner.”

https://www.youtube.com/watch?v=T322xZm4wwQ

#69 Sail Away on 02.02.21 at 5:02 pm

#40 Adam on 02.02.21 at 4:10 pm

Re: worldwide disparity

———–

Adam, one can only change the world by their own actions. For yourself, by virtue of having won the birth lottery, you likely have far more wealth, material goods and access to services than the average poor Rio or Mumbai slum inhabitant.

How are you personally changing the lives of these people? What donations/sacrifices are you making? Are you reducing your own comforts to increase theirs? Have you donated a goat, or are you keeping all the milk for yourself?

You are the key. Not Garth, not me, not Elon. You.

#70 Do we have all the facts on 02.02.21 at 5:02 pm

While I am not, and never claimed to be, an economist I have concluded that the economic recovery predicted for 2021 and 2022 will result in one of two results.

1). An increase in interest rates

2). An increases in taxes

The issue of bonds that end up being purchased by Central banks seems somewhat unnecessary when the Central bank can just print the money a government needs and the government can increase taxation to keep inflation under control. Taxation supports fiat currency in that citizens have to be compensated in fiat currency to cover their taxation obligations. Bitcoins just won’t do.

If politicians balk at the idea of raising income taxes the only alternative way to suppress the inflation that goes hand in hand with economic growth is to increase the cost of borrowing.

Modern Monetary Theory embraces the idea of controlling inflation through increases in taxation. This would eliminate the need to compete for capital by issuing bonds. Just print the money you need to stimulate economic growth and control possible inflation through additional taxation.

However trying to ride two policy horses at the same time is going to get very confusing over the next few years.

#71 VladTor on 02.02.21 at 5:06 pm

No trading stops today and the stock dropped 50%. So much for your theory. – Garth
——————-

Ok. But Wall Street Cartel took action against GameStop, that’s why.

….Amateur investors are responding with outrage after trading platforms curbed buying of shares in the US games firm GameStop and other companies.

The moves by Robinhood and Interactive Brokers follow days of frenzied trading that led to massive gains for some stocks.

Shares in GameStop dived by as much as 55% after the restrictions…..

see here—> https://www.bbc.com/news/business-55837519

This is ridiculous. If on each corner you can heard about capitalism self adjusting and free market system, why you need to take action. Let things go as is and wait for self adjusting.

Why they didn’t take never ever action against Tesla for ex. ? Same bubble!

#72 VladTor on 02.02.21 at 5:11 pm

No trading stops today and the stock dropped 50%. So much for your theory. – Garth
—–

….Robinhood and a few other brokers said they will resume allowing “limited” buying of GameStop after lawmakers including U.S. Rep. Alexandria Ocasio-Cortez and Sen. Ted Cruz attacked them for restricting trades. …

Another link—> https://theconversation.com/why-gamestop-shares-stopped-trading-5-questions-answered-154255

Correction. GME lost 60% today. Time to move on, kids. – Garth

#73 SCD on 02.02.21 at 5:17 pm

Sorry Garth I misunderstood the text in that paragraph.

#74 Keen Reader on 02.02.21 at 5:17 pm

Thru several military postings, lost 10% on my first house, gained 20% on the second, lost 10% on the last one, which by then was 5X my 1st, so an overall loss. So much for RE always going up. Happily renting now but keeping options open. Though rates going up may help, current market valuations supposedly make sense in low-rate environment. This means the market is as likely to blow up as RE to have its oft-foretold long, continuous melt in years to come. I’m afraid the markets will see bigger losses than RE in the coming months.

#75 TurnerNation on 02.02.21 at 5:24 pm

Back meet bone!

https://www.blogto.com/city/2021/02/toronto-businesses-opening-defiance-lockdown-orders/
“With nothing left to lose and a supportive network of likeminded entrepreneurs at their side, at least 250 business owners across Canada plan to reopen on February 11 in defiance of their respective governments.

You can find a directory of those who’ve already chosen to go public with their intentions at WeAreAllEssential.ca,”

——— In only one year the Globalists have destroyed our society, culture. Well done. Welcome to the New System. Check your history books how this plays out…
This is all about State Control over our lives. Enforced by local Block Captains and local Commandants.

https://bc.ctvnews.ca/ubc-law-students-collected-information-on-classmates-covid-19-rule-breaking-email-alleges-1.5289971
UBC law students collected information on classmates’ COVID-19 rule-breaking, email alleges
VANCOUVER — Students at the University of British Columbia’s Peter A. Allard School of Law have been reprimanded for allegedly creating a spreadsheet documenting their classmates’ alleged failure to comply with public health orders aimed at stopping the spread of COVID-19.

——————————-

– Hey were you gainfully employed until the new Global Government shut you down with the New System? Here’s your new UN Smart Home. Yep 300 square feet is all you will get. Stack em and pack em. The new CV Serf class. Kind of like those tiny apartments and cage homes in China?

https://torontostoreys.com/second-modular-housing-facility-toronto-321-dovercourt/

“Each home is approximately 300 square feet and has a kitchenette and washroom and are furnished with a twin bed, a lounge chair, a dining table and chairs, and a dresser.
Toronto’s second modular supportive housing building for residents experiencing homelessness is now open, marking the completion of Phase One of the City’s Modular Housing Initiative.”

#76 mj on 02.02.21 at 5:27 pm

Stephen Harper warns about a debt crisis

https://www.youtube.com/watch?v=HAKetLKjCP8

#77 Faron on 02.02.21 at 5:28 pm

#71 VladTor on 02.02.21 at 5:06 pm

Why they didn’t take never ever action against Tesla for ex. ? Same bubble!

Because of volatility and broker capitalization requirements set out by Dodd Frank (in the US).

Almost. TSLA, bubble or not, shows rapid price change, but never running through a range of +150%-80%. Not even close. When stocks fluctuate like that, brokers have to put up a ton of cash to ensure trades can go through. RH didn’t have the cash. End of story.

#78 James on 02.02.21 at 5:40 pm

$ 24 Ustabe

‘And its obvious my metal health is significantly better than many who post their hate and insecurity here daily, hourly it sometimes seems.’

________________________

Nice reference to crowdedelavatorfartz!

#79 MF on 02.02.21 at 5:46 pm

10 Mr Happy on 02.02.21 at 3:20 pm

First off, older “millennials” like myself are now nearing 40. The youngest millennials are around 25 now. The forum members are probably not a bunch of pimply kids like everyone seems to think. They probably are generation Z (under 25). Gen z is a carbon copy of millennials anyways, so it’s a moot point.

Secondly,

There were lessons learned but not the ones you might be referring to. The lessons were that the internet and Internet forums can be used to impact stock prices for short term gain. It’s nothing new really. Just this one caught the media’s attention. Everyone already knows some craziness goes on behind the scenes on Wall Street. We’ve had countless movies, shows, books etc. It’s already part of popular culture.

Tbh, most people must have assumed GME would collapse and quick…but that wasn’t the goal. It was a pump and dump for short term gain 1) and 2) to “punish” some hedge funds. The stock price did rise and those hedge funds pulled out (i think) so I guess that means success.

“ You may not want far higher mortgages now, kids, but without them you’ll be indebted your entire lives. And you will envy us. Wrongly.”

-Yes we do want higher rates to stop the distortion. Again, we older millennials are almost 40. Waiting through the family formation years of the 30’s is hard for many. A lot of people lament the fact they have been “forced” to take on large debt to own a home due to the low interest rate environment. FOMO and everything else is a minor component in the housing market. It’s 99% related to interest rates. Any rise in rates will end the housing boom.

MF

#80 Broke and Broker on 02.02.21 at 5:47 pm

Hook, line and sinker -all the way to the bottom!

#81 Linda on 02.02.21 at 5:48 pm

The semi shown in todays post doesn’t appear to have nauseous green siding….. still, seems to be a tad overpriced even with the siding upgrade:)

#82 Shirl Clarts on 02.02.21 at 5:49 pm

Cute, those hoodies. They don’t know what they don’t know.

I used to believe this quote.. “any decision is better than indecision.”.

Except if the decision involves buying GameStop. Sometimes it’s better to sit on your hands.

#83 Ponzius Pilatus on 02.02.21 at 5:49 pm

Happy Days!
Our glorious Leader, The Right Honable Prime Minister of Canada, Justin Trudeau has today announced that he procured a deal that will assure the delivery of millions of vaccines that will be Made In Canada.
Get ready for a Spring election.

#84 R on 02.02.21 at 5:49 pm

Real estate has increased as a direct result of the CB and political gross manipulations. If the government is over indebted, I hope they tax real estate first. Lose the primary residence capital gains exemption, and tax the assets class you actually had a hand in artifically inflating. Leave the investment cap gains, dividends, and TFSA accounts alone.

#85 Faron on 02.02.21 at 5:49 pm

The GME etc. event can’t happen again. As in functionally can not at least in the next little while. The gig is up. Everyone is watching for the next name to drop out of social media and everyone, especially the institutional money, will act accordingly, thus there will be fuller discovery. When information is as close to complete as possible, there’s no distortion in the market to exploit. With GME, the hedge funds weren’t giving due credit to social media, they didn’t allow themselves the full set of information governing the market they had a stake in and thus they got caught positioned with a massive distortion opening up beneath them. Truly a horrifying position to be in I imagine.

Once the problem was caught, it was too late. The short squeeze could only play out until enough positions were covered for free float to outweigh the ability of Reddit to buy. In the future, such a failure to recognize the potential for this dynamic will be counted as negligence and will be punished appropriately by investors leaving a fund and otherwise will act to keep the squeezable positions from happening. There will be many tries over the next months, but none as severe as what was witnessed last week.

Until, of course, we all forget this dynamic. Nothing new under the sun.

#86 Randy on 02.02.21 at 5:50 pm

Every market is rigged….including crypto….

#87 West World on 02.02.21 at 5:52 pm

Here’s another one Garth…
Albeit a detached houses but way out in Maple Ridge.
22805 Nelson Court Maple Ridge
Asking 1.185m
Sold 1.41m
225k above asking
2021 BC Assessment valued at 984k

#88 Baph on 02.02.21 at 5:58 pm

I am an idiot – what is HL&S?

Hook, line & sinker. – Garth

#89 Moose on 02.02.21 at 5:58 pm

Here’s a crazy idea….why not ban short selling like suggested in 2008/09……oh I forgot…..we don’t have enough greed and corruption yet

#90 Drinking on 02.02.21 at 6:07 pm

Strange world, Bezzos stepping down; oil is holding its own, Danes offer a 20 yrs mortgage at 0%, no jabs, new strains appearing all the time (duh) it is a virus, it will always mutate, mills wining as usual on how good we had it (what a joke); cold weather and winter is arriving. Freeland is up to her usual tricks: https://nationalpost.com/opinion/rupa-subramanya-chrystia-freelands-side-gig-with-the-wef-is-endangering-canadian-democracy
Garth getting jolted because most of us are retards (tongue and cheek), but moistures are offended, pass the tissues. And I can’t drive 55, that is a crime!!! :)

Life is good; stay safe everyone! Love today’s pic!

#91 Kim Christensen on 02.02.21 at 6:19 pm

RE: #40 Adam on 02.02.21 at 4:10 pm
Let me ask you something Garth. Why is it so important to most “boomers” that people KNOW how hard it was for them growing up

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

It is usually in response to the whining that the boomers hear from Millennials/Zoomers. Every generation has it’s struggles. You’re not special.

#92 Long-Time Lurker on 02.02.21 at 6:20 pm

Zoolander 3. Script update.

PM Zoolander, when out of sight of the Munchkin Politicians, stops running and catches his breath. He looks around and sees that the U.S.S.A. is a strange place where celebrities are heroes and real heroes are ignored and are seldom, if ever, heard of. Where identity politics are more important than substance; and where political correctness is more important than the facts. Oh wait a minute, it’s not so different from Canada.

PM Zoolander continues down the Golden Bribe Road and comes to a marshy lake where he sees a Tin Man and Lion talking to a bunch of unhappy looking Munchkins.

Unemployed Swamp Mud Munchkin: “The Wizard of U.S.S.A. threw away our jobs!”

Tin Man “Shawn Jerry”: “Swamp mud is polluting and harmful. We can’t keep damaging the planet by using it to fuel our homes. Magnifying glasses and wind socks are the new energy sources that can fuel our homes without pollution. Get a job running magnifying glasses and wind socks.”

Unemployed Swamp Mud Munchkin: “But there aren’t any here and it could be years before any new businesses start up, if ever! How are we going to support our families?”

PM Zoolander walks up closer and looks at the crowd of Swamp Mud Munchkins. Most of them have wives and children who look especially piteous beside their husbands… or should I say: Most of them have spouses with upper dangly bits and children who look especially piteous beside their spouses with lower dangly bits.

Cowardly Lion “Rich O’Donnell”: “Let’s get out of here. They look angry. I want to get re-elected.”

Tin Man “Shawn Jerry”: “It’s really dangerous to play to the lowest common denominator of American, of global political life. If the deplorable peasants ruled themselves it would be the end of neo-feudalism. We have to stop this. Let them eat cake!”

#93 Reximus on 02.02.21 at 6:22 pm

the funny thing about gamestop is it was close to bankruptcy…and dingbats thought running its’ stock up would make a difference

#94 KNOW IT ALL on 02.02.21 at 6:24 pm

Papa Garth……

Always right.

Bow to thy Great one.

#95 DON on 02.02.21 at 6:26 pm

#240 Sail Away on 02.02.21 at 1:47 pm
#233 Howard on 02.02.21 at 1:00 pm
#232 Sail Away on 02.02.21 at 12:47 pm

Thanks for the lesson in minimalism. But what does that have to do with your assertion that things are easier for young Canadians today than was the case for young Canadians in the 70s and 80s? By what metrics are you basing that?

———–

Well, I’ve only been here for 15 years, so don’t know about the 70s and 80s. I’ve found it fairly easy to succeed between 2006 and now, but granted, it wasn’t completely handed on a silver platter.

I guess if everybody in Canada was given all their heart desired in the 70s and 80s, including wads of cash, houses and vehicles, then maybe it was easier then.

**********
Well…times were good since 2004. Municipalities in BC spent (pet projects) and now they are in budget constraints and not just do to COVID. Just like the 80’s boom. The building of new sud-divisions has slowed down considerably.

I agree with Howard’s 70 and 80s…I was their and aware. The boomers had their challenges though when the mid 80’s came (lay offs). As always life isn’t lived in extremes. Governments will reduce spending to essential services and even those will be scrutinized and prioritized.

Now we have high wage earners priced out, not able to even get on the first rung of the housing ladder, as even the crap is expensive in boonyville.

The word consequences will be introduced again. In fact, it is already resurfacing. I doubt many are paying attention.

#96 WDL on 02.02.21 at 6:27 pm

Garth. Come on. “The AMC blitz fizzled, too. Same with silver.” GME and AMC are not investing. They are gambling. You may not like Silver but it is not a gamble. I have about a million in good balance funds like you recommend but I also started investing in silver (and uranium) stocks 2 years ago completely against your advice. My worst silver and uraniums are up 2x and my best have already yielded 8x. But you are the god of this blog so continue to flame away on silver.

The reference was to the last 24 hours. Park your wounded ego. – Garth

#97 Capt. Serious on 02.02.21 at 6:29 pm

#40 Adam on 02.02.21 at 4:10 pm

Okay, how. And don’t say by redistributing wealth because that doesn’t work. If you would like to discuss reducing trade barriers between countries and supporting micro loans to entrepreneurs in developing countries, then we can talk. Capitalism has improved the lives of millions to billions of people on the planet. If you don’t know that, please get some stats. There has literally never been a better time to be alive. Will we wake up in time to save the planet? That I don’t know. But I do know that communism and socialism has been shown to be a failure. We tried that experiment. Even China has mostly thrown it away and replaced it with a dictatorship capitalist system. If it doesn’t work for a country of 1B it is not going to work for a planet with 10B. Because humans are going to human, however well intentioned you may be.

#98 45north on 02.02.21 at 6:48 pm

i>A report using data from StasCan, CMHC, CREA and RBC spells it out clearly. Of the largest 50 communities in Canada, almost 40 are seeing deterioration in the ability of average people to afford average houses. Yes, despite 1.5% mortgages – and also because of them.

In Ottawa, we have the New Official Plan which goes on about affordable housing. I told the city staff who wrote the New Official Plan that housing affordability has just disappeared.

Pierre Poilievre: The government is printing money which inflates assets which benefit the rich who have them. But the cost of living goes up which falls heaviest on the shoulders on the poor. So wealth is transferred from those who earn wages to those who earn capital gains through their assets. This will lead to a greater concentration of wealth.

C’est très ironique. The more the government promises to eliminate the concentration of wealth, the more it is concentrated.

#99 Nonplused on 02.02.21 at 6:50 pm

I’m not surprised about the GameStop thing.

Of course we’ve all learned a lot about how the bowels of the trading market work because of this thing. What I did not know before was that naked shorts are managed through something called a “failure to deliver”. In other words you get no stocks and the broker closes them out cash. But that only works until the naked short trader, in this case a hedge fund, runs out of cash. So if he goes broke at $100 then that is all you get. You don’t get any shares because he never had any and couldn’t get any.

Turns out share custody is a complicated and important thing. I suppose this is why assets held in RRSP accounts must be segregated from a broker’s other business. That way even if he goes away your shares show up at wherever those accounts land.

“He who sells what isn’t his’on, pays the fine or goes to prison.”

Anyway, if the WallStreetBets crowd really was intent on busting a hedge fund or two and not on making a profit, they won. But somebody must have bought at $460 or the shares wouldn’t have traded there. Poor sucker. The best he can hope for is his trade got cancelled due to a failure to deliver, but I am betting that somebody who had actual shares did the selling and could deliver.

#100 IHCTD9 on 02.02.21 at 6:55 pm

#40 Adam on 02.02.21 at 4:10 pm
———

Success and “privilege” ain’t drawing names out of a hat my Man.

Privilege is created. It rises over centuries within a society, and its creation is born of the citizenry therein. Outsiders can’t do it. Its birth is not bound by location, race, creed, or anything else, it depends solely upon vision, resolve, and sacrifice.

Privilege is what we ascribe to citizens born into an advanced, tolerant society, but said society didn’t get that way by accident. Chances are pretty good that the blood of many generations was freely given up, for all the right reasons, multiple times in its history. Looking at the crimson splattered history of Western Civilization, no other conclusion can be drawn.

So, the map leading to privilege has already been drawn up, and it’s painted red. The entrance fee is stratospheric. No one could ever pay the cost except for those who will reap the reward. Some will pay it, others will not.

Prosperity will favour those who paid for it.

#101 Rowdie on 02.02.21 at 6:57 pm

Unfortunately, for some people think the RE is HOT. Not so, with the virus and the variants upon us, and the upcoming unemployment figures, RE will have a serious melt down. Of-course a price for a home nowadays is out of range for the average joe, and the low interest rates do not help either. You would think low interest rates would boost the economy, but it seems to be going the other way. Just have to wait until Spring for some sign of relief or change with the RE.

#102 Kat on 02.02.21 at 7:04 pm

Maybe when we get a leader that doesn’t pander to the masses and feel it is his job to keep them from feeling any pain. Rates need to rise and soon however his whole base of followers look to him to keep the status quo going to keep supporting him as their leader.

#103 Taylor on 02.02.21 at 7:05 pm

Sorry Garth, but this story is not even half way over.

I am enjoying this terrific chance to double down. Keep dropping, I am cool with that. More buying opportunities that will be gone by spring, so I am leveraging everything I can and borrowing from family to dive in.

By 2022, I will be knocking on your door to be a long term client, with about $4 million in assets.

I will own shares in:

GME – $750 US

BB – $375 Cdn

AMC – $65 US

Shopify – $3900 Cdn

TSLA – $2800 US

(estimated stock valuations, +/- 20%)

I feel sorry for those who are bailing. But thank them very much!

#104 Nonplused on 02.02.21 at 7:16 pm

#11 Franco on 02.02.21 at 3:23 pm

“The world has gone nuts. I bought an RV trailer today and had to beg for someone to take my order and forget about haggling, they tell you what you will be paying, if they have the time to call you that is.”

The manufacturers are at reduced capacity because of covid safety concerns and the unavailability of parts like toilets and fridges. All at the same time everyone and their dog thinks they need one. Definitely not the best time to buy.

#105 Howard on 02.02.21 at 7:24 pm

#89 Moose on 02.02.21 at 5:58 pm
Here’s a crazy idea….why not ban short selling like suggested in 2008/09……oh I forgot…..we don’t have enough greed and corruption yet

——————————–

BANNING short selling outright is a terrible idea. Short sellers provide a valuable service especially in these perma-bull times by turning a skeptical eye to overvalued companies. Enron’s fraud was uncovered thanks in large part to the due diligence short sellers. In a free market (ha! as if we have that today) one should be allowed to bet against a company as easily as for a company.

Naked short selling is a different matter, and the rules on that are vague (by design, no doubt).

#106 Don't look down. on 02.02.21 at 7:28 pm

I agree the BoC/Gov should be preparing people for rising rates now not later…but do these duffus’s care ?

They flood the market with liquidity while the production of goods are challenging, supply chains broken and they say inflation isn’t rising. Right. I’m buying more commodities.

I do hope they wake up and signal higher rates sooner than later but they left rates in the ditch for the last 10years after Canada didn’t even have a financial crisis.

Duffus’s

#107 crowdedelevatorfartz on 02.02.21 at 7:29 pm

@#40 Adam
“Why is it so important to most “boomers” that people KNOW how hard it was for them growing up.”

++++

Possibly because we dont constantly bitch and moan about how “good” our parents had it?
Or hear the children shouting from the basement bedroom how good we had it?
The recession in the 70’s and early 80’s was brutal for anyone looking for work (me).
But thats a story your don’t or can’t hear.
Who knows, maybe there’s another recession coming very soon….
That might rattle the chains of the kids that have had 25 years of growth, ever lower interest rates and low unemployment… but I doubt it.

Just keep wallowing in self pity and blame your elders for your crappy life……that’ll fix everything

#108 Nonplused on 02.02.21 at 7:32 pm

“Actually I know. The ‘trading stops’ referred to were not imposed by the market (of course) but by platforms that could not settle the trades because they lacked the funds to clear them. It happens. No conspiracy.”

Turns out not just lack of cash but also the huge number of “failure to deliver” occurrences. It is a huge hassle for a broker like TD Ameritrade or even Robinhood if they put through a buy order and then get a failure to deliver. Now they owe their customer a stock, but they don’t have it and don’t know when or if they will get it. I’d shut it down too. What else can you do? You can’t just keep selling people things that don’t exists. Unless you are a hedge fund of course.

Shorting should be ok I think, the lender of the shares knows he is taking a risk and might only get money back, but naked shorting should be banned and have criminal penalties.

#109 crowdedelevatorfartz on 02.02.21 at 7:34 pm

@#83 PeePee
“Justin Trudeau has today announced that he procured a deal that will assure the delivery of millions of vaccines that will be Made In Canada.”

++++

Bwahahahaha.
And when will these vaccines roll out?
2023?

#110 the Jaguar on 02.02.21 at 7:36 pm

#237 Faron on 02.02.21 at 1:22 pm++
Yeah, stay out of it Jaguar. Keep up or stay immaterial. Stand up for female intellect or cower behind BillyBob’s Epaulettes. Doesn’t matter to me.+++

I assume the “science” you associate with is computer science? (BillyBob)
You know what they say about “ass-u-me-ing”, right? Certainly not going to tell you what I do other than it’s not at all CS/CE.+++

+++
I have no need to cower behind Captain Ross (aka BillyBob) or anyone else since my Black Belt in Ass Kicking gives me a lot of confidence. “Stay out of it Jaguar”…….Don’t attempt to bully or intimidate me. It’s a dangerous and losing proposition. If you do it again I’ll be forced to spill the beans that you’re a Climate Guy. Oooops.

#111 crowdedelevatorfartz on 02.02.21 at 7:36 pm

@#78 James
“Nice reference to crowdedelavatorfartz!”

+++

And I thought you liked me….. I’m crushed.

#112 IM in C on 02.02.21 at 7:42 pm

Listen carefully folks. Housing prices are never going to crash. It is all , quite simply; too big to fail. They are going to continue to go up and up. And yes I agree with you , it won’t be sustainable, but I am not referring to economic sustainability. I am referring to legal , cultural , social sustainability . The very fabric of our society is going to change.

Yet again I need to remind you that house prices never have to ‘crash’ to cause societal discomfort and loss. All we need to see is rates rise and values flatline. That is a very believable scenario. – Garth

#113 The Woosh on 02.02.21 at 7:43 pm

As stated, it is what the users call themselves. Go dump on them. – Garth

———————————————

But repeating it here just perpetuates the stigma. You ‘chose’ to publish it here.

#114 Nonplused on 02.02.21 at 7:45 pm

#54 meslippery on 02.02.21 at 4:27 pm
Two people making $500 a week would be 52k
not too many people making that kind of coin in the mid 70s

————————————

I am pretty sure Garth dropped an inflation adjusted number. It is pretty hard to do meaningful comparisons over long periods of time without adjusting for inflation.

In 1967 you could buy a brand new Ford Mustang for about $3,000. A new one today can be $70,000. But comparing those numbers is useless unless you adjust for inflation. And other factors like the fact the new one has 500 hp and heated seats.

#115 crowdedelevatorfartz on 02.02.21 at 7:46 pm

@#66 Faron.
“Grep, then grok and before you know it your have a gestalt.”

++++

Funny.
I remember reading a Sci-Fi book ( Stranger in a Strange Land….R Heinlein) back in the 1970’s that had the term “grok” in it and it was quite popular with the geeks even back then…..
The book was published 60 years ago.

https://en.wikipedia.org/wiki/Grok

#116 Faron on 02.02.21 at 7:49 pm

#99 Nonplused on 02.02.21 at 6:50 pm

the naked short trader, in this case a hedge fund,

To clarify the facts here, it wasn’t naked shorting. Here’s a long explainer as I see it and based on what I’ve read and the little I know about finance.

To make this simple, say you have five players and there are only two shares in a given stock.

Bob buys a share. Sally borrows Bob’s share and sells it short. Theo buys two shares. One he bought off Sally and the other was the remaining of the two shares. Right now everything is on the up and up. Short interest is 50%. Long holdings are 150%. Net holdings are 100% of the shares.

Now, the broker that Theo uses lends out Theo’s two shares to Sara. Theo’s broker has no idea what the history of those shares are, nor should they or realistically could they, so this is fine. Sara sells those two shares short to Bob who builds his position. Now we have short interest of 150% but none of it’s naked. We have Bob long 150% of the shares and Theo another 100% For total long interest of 250%. Every transaction moved actual shares and this is all on the up and up because the net holdings are 100% of shares.

This is not the same as naked shorting.

Now, unwinding this is brutal. Say Bob wants to sell one of his shares? There are currently no other sellers and Leroy read about this stock on WSB and will pay ANYTHING for it and hits buy on Robinhood. Bob goes to Robinhood and hits sell. This immediately marks down a price that’s high owing to demand and no supply (illiquid market) causing Sara and Sally to panic. Sara’s out, she goes to Robinhood and sees a huge ask determined by Bob, Theo’s and Leroy’s unwillingness to sell, but everyone has a price and eventually Sara covers at a huge loss and buys Theo’s shares from him unknowingly buying the same shares she earlier borrowed and sold. She returns these to Theo’s broker and the long/short position is nullified.

Now the state of play is Theo has zero interest and made out like a bandit. Sara has zero interest and lost serious coin. Call her Citron here. Leroy is long 50% and Bob is still long 100% while Sally is still short her one share or 50%. So, we are back to 50% short, 150% long, net 100%. Finally, Sally is savvy and sees the price falling quickly after Theo dumped his shares on the market and waits. She shorted after initial price bumps and was well capitalized and didn’t get margin called and could afford the lending cost of her share. This is a crappy corp, so really the price should be falling anyhow. Eventually it falls below where we started. She buys LeRoy’s share at a loss to Leroy who was a YOLO redditor and covers her short.

Now we have only Bob long at 100% holding two shares with a paper loss. Sally covered her costs, Sara took a massive hit, LeRoy took a massive hit. Theo killed it by selling at the right time (took Sara and Leroy’s money). The brokerages also did well with transaction fees and interest on lent shares.

Add in options and you have a real mess, but none of it was dubious naked shorting.

#117 Jude on 02.02.21 at 7:51 pm

Just for fun, I clicked on the WSB link in your post and stumbled across Mark Cuban’s Ask Me Anything segment today: https://www.reddit.com/r/wallstreetbets/comments/lawubt/hey_everyone_its_mark_cuban_jumping_on_to_do_an/

Garth, any thoughts on some of MC’s words of wisdom? In particular, his view that the WSB crew can actually change the system this way and to hold on tight to GME?

Yes, two comments. Pump. And dump. – Garth

#118 crowdedelevatorfartz on 02.02.21 at 7:53 pm

@#113 The Woosh
“But repeating it here just perpetuates the stigma. You ‘chose’ to publish it here.”

++++
Spare us your indignation.
These days.
Every word, glance, gesture, sound and ( in my case)smell offends someone.
Generation W (for Whiners) should be the all encompassing moniker.

If you are truly offended.
Hold your breath until the world is a “safe space”.

#119 Howard on 02.02.21 at 7:55 pm

#75 TurnerNation on 02.02.21 at 5:24 pm

– Hey were you gainfully employed until the new Global Government shut you down with the New System? Here’s your new UN Smart Home. Yep 300 square feet is all you will get. Stack em and pack em. The new CV Serf class. Kind of like those tiny apartments and cage homes in China?

https://torontostoreys.com/second-modular-housing-facility-toronto-321-dovercourt/

“Each home is approximately 300 square feet and has a kitchenette and washroom and are furnished with a twin bed, a lounge chair, a dining table and chairs, and a dresser.
Toronto’s second modular supportive housing building for residents experiencing homelessness is now open, marking the completion of Phase One of the City’s Modular Housing Initiative.”

—————————————

I actually don’t have a problem with these modular micro units. Could be a viable and cost-effective way to shelter the homeless. The way I see it is that any new supply is a good thing.

They shouldn’t be constructed in core urban areas though. Doing so would be allowing the poor to leapfrog over the middle class (presumably ineligible for these units) and live in prime areas where the middle class is priced out.

#120 Nonplused on 02.02.21 at 7:57 pm

#71 VladTor on 02.02.21 at 5:06 pm
No trading stops today and the stock dropped 50%. So much for your theory. – Garth
——————-

Ok. But Wall Street Cartel took action against GameStop, that’s why.

—————————————

Look VladTor, even at the lowly price of $100 GameStop is still a sell and if you owned it at $20 but missed out selling at $350 it is still a 5 bagger. You will still be paying capital gains taxes and pocketing a lot of cha-ching!

My guess is that is what the actual longs who had actual shares from way back are doing, if they are smart. Even at $100, this was a gift from heaven.

#121 Drill Baby Drill on 02.02.21 at 8:05 pm

We need a financial bust and mortgage increase in order that uninformed millenials learn the hard way. It is the only way afterall.

#122 Sara on 02.02.21 at 8:07 pm

I’m starting to think that ‘the Jaguar’ is ‘Sail Away’s’ female alter ego.

#123 Masks really do make some people more attractive on 02.02.21 at 8:08 pm

For all you fans of free speech:

Trudeau will be looking to pass legislation this winter, to police online speech.

Lindsey Shepherd is reporting:

“As you may know, the Canadian government is saying “online hate” legislation is coming this winter. According to the Minister of Heritage, the definition of hate speech will be pulled from the Whatcott Supreme Court decision.

Here is an excerpt from that decision:”

https://www.canlii.org/en/ca/scc/doc/2013/2013scc11/2013scc11.html

“I agree with the argument that the quest for truth is an essential component of the “marketplace of ideas” which is, itself, central to a strong democracy. The search for truth is also an important part of self-fulfillment. However, I do not think it is inconsistent with these views to find that not all truthful statements must be free from restriction. Truthful statements can be interlaced with harmful ones or otherwise presented in a manner that would meet the definition of hate speech.”

Garth may have to crack down a little harder on the comments.

#124 SeeB on 02.02.21 at 8:11 pm

Well, pumping a stock one way or another is literally what the parasitic hedge funds have been doing forever, so what’s good for the goose…

I think the current theory of the WSB crowd regarding the crash is the hedge funds rapidly trading each other the stocks over and over in order to drive down the price. I have no idea how to prove or disprove this theory. Either way, it sounds arcane and complicated, and is probably designed that way on purpose so the eyes of the public glaze over when anyone tries to explain it.

Honestly I don’t think it really matters. Wall Street will continue to instigate one market crash after another with greater frequency. All the while, the funds, cowboys on WSB, and others like them will pilfer from more and more working class suckers.

Eventually the whole thing will collapse on itself when everyone save a tiny few is broke and angry. The neo-lib, bootlicking-manager class will just keep telling people who are getting evicted and can’t afford food that they just didn’t work hard enough or save well enough. Every concerted effort to correct income imbalance or provide real material help to “the poors” is attacked as socialism or communism. Neo-libs, by definition, are the architects of their own eventual demise.

#125 Faron on 02.02.21 at 8:12 pm

#115 crowdedelevatorfartz on 02.02.21 at 7:46 pm

If you have trouble sleeping tonight: revenge of the nerds on grok and grep…:

https://news.ycombinator.com/item?id=1558644

not a sci fi or fantasy fan. I came by grok as one does most language. Osmosis.

#126 Man of the cloth on 02.02.21 at 8:25 pm

I keep reading about how the boomers had it so good in the 70’s. Let me tell this story to add a little perspective to those years.

In 1973 I was sitting in my grade 10 geography class. We were learning about urbanization.

The real estate market had been hot for a couple of years, (just north of TO) and was continuing to heat up.

Our teacher thought he would give us a life lesson about the times and said ‘out of the 28 kids in this class, only 2, maybe 3 of you will ever be able to afford a home in your lifetime’.

Prices had risen that high, so quickly. Not terribly uplifting for a young person.

Well, life as a youngster went on and things changed for one reason or another. High interest rates in the early 80’s. Cheap houses. A housing crash in 90 after a wacky run up. Etc, etc. You all know the story, or should.

Despite the teacher’s pessimistic words, we all ended up with houses at some point, generally sooner, rather than later. Most of my classmates got into the trades, and they are the ones who have been able to retire early. Perhaps, this might be the life lesson some need to help them carry on.

And by the way, my first ride when I turned 16 was a 66 Barracuda. Yes it was red. Had the fastback rear window. 273 V8. Got my 365 on the day of my birthday, and full license a week later. Only way to get around where I lived.

One night, a month or so later, I was coming home from a party at about two in the morning. It was quiet on the road, and I decided to see how fast that Cuda would go. Got up to 110mph, and then, BOOM. Scared the hell out of me. Had no idea what had happened. Turns out I had blown the manifold. Dad wasn’t too pleased the next morning. Another life lesson…. of many.

Finally, can’t finish without saying, 70’s rock and roll was the best.
Party on.

#127 The Woosh on 02.02.21 at 8:30 pm

118 crowdedelevatorfartz on 02.02.21 at 7:53 pm
@#113 The Woosh
“But repeating it here just perpetuates the stigma. You ‘chose’ to publish it here.”

++++
Spare us your indignation.
These days.
Every word, glance, gesture, sound and ( in my case)smell offends someone.
Generation W (for Whiners) should be the all encompassing moniker.

If you are truly offended.
Hold your breath until the world is a “safe space”.

———————————————

Spare you? It wasn’t proper spewing hate 10, 20, 30, 40+ years ago. It’s not proper any more so now. Nothing wrong with people speaking up about it. You keep living in your bigoted cave.

#128 the jaguar on 02.02.21 at 8:35 pm

@ SARA# 122.

Thank you for the compliment.

#129 Capt. Serious on 02.02.21 at 8:39 pm

Back to more mundane post bug topics. My employer signalled today that we will be allowed to work from home some of the time post pandemic and that they will be more flexible with work arrangements going forward. They will also look to re-jig our real estate to create more collaboration spaces and fewer individual work cubes. They very clearly left out the blank cheque option of working from home all the time. We are a global company with offices all over the world, for context.

#130 baloney Sandwitch on 02.02.21 at 8:42 pm

Sold out on BB position. Sill have half AMC – now holding to see if it rebounds. AMC converted a lot of debt to equity so should survive till lockdown ends. GME has almost no debt – so I think best thing for them is to wind down and distribute remaining cash to shareholders.

#131 Polecat on 02.02.21 at 8:47 pm

I’m Gen X, enough said…

#132 Nonplused on 02.02.21 at 9:06 pm

#116 Faron on 02.02.21 at 7:49 pm

I tried to follow that but all I got was this:

https://www.youtube.com/watch?v=95SWMqzM_Sg

#133 westcdn on 02.02.21 at 9:25 pm

I thought my buddy was cruel but then he was a turnaround artist. Some people deserved to be fired but others didn’t. I was invited to dinner.

They prayed over a bowl of steamed potatoes. I think guy get some sense and honor otherwise you are going to be trapped forever. Yet these are the men who won’t fail you in battle.

I don’t know what to do about that except to protect them. Unions have no value to me. I think I am pretty good at respecting who people are. If they are willing to improve themselves, I am there.

#134 Nonplused on 02.02.21 at 9:29 pm

#116 Faron on 02.02.21 at 7:49 pm

But on further consideration, while I agree with your analysis as to what actually happened, I am not so sure it is appropriate for traders to be loaning out stocks that they borrowed. Or had they sold them, fine, but then the new holder can also lend them out? So as far as I can understand your explanation it seems kind of Enron like. There is only one egg, but there are 4 people that think they are getting breakfast. Something doesn’t add up.

#135 Ponzius Pilatus on 02.02.21 at 9:32 pm

There is no Dual Citizenship allowed in China.
They are in the process of extended that to HongKong.
There are approx. 350k Canadian Citizens with Dual Citizenship in HongKong. They will have to choose.
Vancouver and Toronto may see another wave.
CEF, time to move to make room.

#136 crowdedelevatorfartz on 02.02.21 at 9:40 pm

@#127 Woosh
“It wasn’t proper spewing hate…”
++++

You’ve disrespected Cave dwellers all over the planet.
For shame.
Whats next?
“Stinky” should be banned because smelly people are offended?
It’s a boring world in politically correct Canada.

#137 Steve on 02.02.21 at 9:44 pm

Garth,
Don’t worry about these complaining about your use of the self described names for the people of wallstreetbets
The one thing that gme did was get a lot of people reading about how the markets operate. Again never simply take blind advice but read the idea and evaluate.

A remember “Apes stronger together “
Ps thanks for all the advice over the years. Etf are the way.

#138 Sail Away on 02.02.21 at 9:51 pm

#122 Sara on 02.02.21 at 8:07 pm

I’m starting to think that ‘the Jaguar’ is ‘Sail Away’s’ female alter ego.

————

You honour me. Thank you.

#139 Comments! on 02.02.21 at 10:01 pm

Yet again I need to remind you that house prices never have to ‘crash’ to cause societal discomfort and loss. All we need to see is rates rise and values flatline. That is a very believable scenario. – Garth

—————————————-

How will flatline prices at these insane levels fix anything? A serious and mammoth crash is required for any of this to make sense. That includes all stock markets too by the way. My home purchased for $340 in the 416, has gone up nearly 600% since 1998. Absolutely absurd. As a consumer I wouldn’t pay half of what it fetches today.

#140 I hate reddit on 02.02.21 at 10:07 pm

Garth, it’s only a loss once you sell. It’s only again once you sell. Until then, it’s a performance art project. And a lesson in gambling for everybody from the Robin Hood moisture to the cocky fat cat hedge fund operators.

#141 TMac on 02.02.21 at 10:07 pm

I was fortunate to make a lot of money off the game stonk debacle. Always remember, the deck is stacked against us, the hedge funds always win, the wealthy remain so because they live in a system that has been created for and manipulated by them.
This is completely evident with the pure market manipulation that happened last week with media lies, brokers limiting trades and several key players risking jail time to stop this “movement”.
Hopefully, things change but, I doubt it.
Workers will work for peanuts and the wealthy will own the world.

#142 Dr V on 02.02.21 at 10:10 pm

76 MJ – thank you for this link

#143 Sara on 02.02.21 at 10:32 pm

#128 the jaguar on 02.02.21 at 8:35 pm
@ SARA# 122.

Thank you for the compliment.
==============

It wasn’t one.

#144 ThebigBinOtown on 02.02.21 at 10:34 pm

Housing market is turning crazy in Ottawa. Stacked town houses list for $395k sold for almost $600k in the last two weeks. Not sure who is buying properties….investors or desperate first timers??? You could have bought a double garage 3 bed 3 bath detached for less than $600k 18months back in these same neighbourhoods. A lot of people I know have become ‘investment’ experts on borrowing more from the equity of their inflated houses to buy more properties. No one wants to sell their houses when moving it seems. Not enough inventory for sale compared to demand. Strange thing is there are a lot of new builds (of course builders are only release lots In trickles). Strange market….where is all this demand coming from…is there so much people moving to Ottawa? Or is it from locals buying properties as investments?

#145 Norman Kennedy on 02.02.21 at 10:34 pm

This week’s edition of The Economist says Canada will be the first western country to be forced to end the fiscal stimulus spending because they have already over done it by a mile compared to other countries. If they refuse we can expect higher interest rates and a weaker Canadian dollar.

#146 gfd on 02.02.21 at 10:35 pm

In 2006, Jim Cramer accidentally revealed some of the dirty tricks short selling hedge funds use to manipulate the price of stocks down. This podcast episode was promptly deleted but not before it was captured here for your edification.

https://youtu.be/CpMEFtPZJLc

#147 SimplyPut7 on 02.02.21 at 10:57 pm

Gambling is not investing, no one last week should have bought or sold more than they were willing to lose but if Robinhood, TD Ameritrade, Charles Schwab, WeBull and Stake in Australia all had clearinghouse requirements that made it difficult to meet the demands of their customers, shouldn’t these fintech/brokers be upfront about the limitations of their services.

Several stocks nearly broke the stock market last week, no one was worried about the fundamentals in Netflix or Tesla; they had no problem letting their clients buy stocks with P/E greater than 1600. But a few stocks ranging from $4-200 were a cause for concern and were unavailable for purchase or sold from users accounts without consent on these platforms.

I think the lesson from the frenzy showed that there are missing SEC oversights in these fintech/online brokerage sites. Young novice investors shouldn’t be able to buy on margin or buy calls/puts so easily. Fintech providers shouldn’t have the right to sell your stock without your consent.

There are $1000-$1400 stimulus checks expected to be paid to many Americans, people who don’t need the money to pay bills will gamble in the stock market, I think we will be heading into more volatile times in the stock market and in the general economy as more businesses fail and the long-term implications of that start to spread into other sectors of the economy.

#148 Cici on 02.02.21 at 11:18 pm

#26 Highlander 101
#19 SCD

Yes, it’s awful and unfortunate that such words are thrown around so uncompassionately, but in all fairness, that’s the point Garth was trying to make by quoting them. In other words, he was questioning why anyone would trust the advice or follow the lead of people who make such immature and inappropriate comments.

#149 Cici on 02.02.21 at 11:24 pm

#27 Faron

Thanks Faron, that was funny and it’s especially reassuring that there are people out there, like yourself, who actually get it!

#150 Dr V on 02.02.21 at 11:25 pm

116 Faron – I would agree this is not naked shorting as your example properly tracks custody.

But is this what actually happened?

#151 Reminiscing on 02.02.21 at 11:34 pm

#24 Ustabe on 02.02.21 at 3:51 pm

This old fart reminiscing is fun. My first car was a Hudson Hornet. I guess I’m older than most. But I still pee in a straight line and recently passed a thorough physical with flying colours.

_____________________________
Except now your wife tells you to put the seat up before you pee … instead of putting the seat down after you pee!
______________________________

And its obvious my metal health is significantly better than many who post their hate and insecurity here daily, hourly it sometimes seems.

__________________________
Yes, its obvious …. your “metal” health is just fine … your spelling and typing … not so much!
_______________________’

#152 Bill on 02.03.21 at 12:35 am

Well done on this one…
Yup they were pumping silver and the stupid word out was they were going to crush the banks shorts and collapse them. What a crock…but on this run up, and gift, I was grinning ear to ear while bailing on my positions. A year ago I bought a pile of Endeavor @ $2.20 and unloaded on this dandy spike from these clowns. I was up $60k more in a 3 day stretch. When it hit $8 I sold it to the next greater fool.
GME = JOKE. Don’t play these games unless your willing to lose it all…
Now we take those lucky winnings way into the 6 digits and invest in something prudent.

#153 Lead Paint on 02.03.21 at 1:11 am

#40 Adam

And the poorest person owns a small little hut with a little garden and maybe a few goats. Doesn’t that seem more fair?

Doesn’t sound fair for the goats…

#154 Nonplused on 02.03.21 at 2:58 am

#220 IHCTD9 on 02.02.21 at 10:42 am
#186 Nonplused on 02.02.21 at 12:45 am
#147 IHCTD9 on 02.01.21 at 7:37 pm

I will give you the GM trucks. It seems the big three can still make trucks.
___

I’ll agree with that one, Ford/GM/RAM own the full size truck market. The Tundra is the only thing that looks like competition for the big three, but they are not stepping up near enough.

——————————–

My ride is a Ram 3500 Cummins Asian. I mention the engine and transmission because it is important considerations. I wouldn’t touch an “Eco-Boost” with a 10 foot pole, they are too expensive to fix and you are trading fuel economy for short engine life.

But a 350 (5 liter) regularly asperated engine in a truck will go you a long ways if you change the oil as advised.

Wouldn’t get the Dodge with the “Eco-Diesel” either. Fiat product, designed to go 80,000 miles and that’s it. The GM small diesel seems better but that is a Isuzu product, and Isuzu has a much better quality rating than Fiat.

So when you are buying a truck, the most important consideration beyond mileage is what engine and transmission does it have. The frame is going to hold out for you aside from the odd wheel bearing or bushing replacement.

And to note, I did not buy a Dodge. I bought a Cummins. I doubt I will outlive the engine, or the Asian transmission. Might have to rebuild the whole rest of the truck but the motor will still be going long after we both log off this blog for the last time.

#155 Schoolie on 02.03.21 at 6:39 am

Anyone here crying about Garth’s use of the word retard needs to reassess their reading comprehension and take the OSSLT. Yeah, the 10th grade literacy test. The man clearly indicated in his post that the terms used were how wallstreetbets Redditors described themselves. I thought this blog was a grown up corner of the Internet.

#156 BillyBob on 02.03.21 at 6:45 am

Backlash begins.

https://montrealgazette.com/news/local-news/snowbirds-call-for-changes-to-punitive-travel-restrictions

https://nationalpost.com/opinion/opinion-trudeaus-quarantine-hotels-hurts-those-who-need-our-help-the-most

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

Me dear Faron,

I really admire how someone distancing themselves from computer science has such fierce markup skills with the quote deconstruction. I am flattered you make such an effort! Perhaps you could find some tags that make you seem a bit less angry and frustrated? We are all here for a good time, not a long time, after all.

I’m not sure how many times I must apologize for my error in the gender of your partner, I’m truly sorry it’s caused you such angst. But never once have I suggested that having children is a crime. I merely think it quite amusingly ironic to earnestly sermonize about civic responsibility and entitlement when intending to bring new little ones into a rapidly depleting environment. But selfishness is not a crime!

And really, winning a meaningless argument in one’s own mind by inventing what the other party said is a bit of a hollow victory, isn’t it? Come now, you’re better than that.

In fairness I realize you are under a lot of stress, trying to buy a house in one of the most expensive markets in Canada and considering having children. It’s quite evident from the unseemly lashing out at Jaguar and your characterization of pilots as bus drivers. (Your regret on that cruel epithet is appreciated, as I shed a waterfall of tears upon reading it. Doing better now, thanks.)

Are perhaps your reproductive duties weighing heavily on your, uh, mind? I only ask because it appeared you were trying to make a subconscious cry for assistance when you used, your word not mine, “stud” as a descriptor recently. It hit me like a bolt of lightning – there was never a need to connect you with potential mommies – I was barking up the wrong tree the whole time!

So, at great risk of seeming indelicate, if I – in the true spirit of Greater Fool camaraderie – can be of um, service, do let me know. Never let it be said that I did not step up to help a fellow sojourner in need. No sir!

Obviously, the logistics will be a challenge. I ask for nothing more in compensation than your covering my travel expenses – I’ll bring my own wine. Unfortunately, those costs have recently increased by $2000. But considering the upgrade in IQ and physical attractiveness for your progeny, I’m sure you’ll agree that amount is trifling!

I remain, yer humble servant BillyBob.

#157 the Jaguar on 02.03.21 at 7:40 am

@#143 Sara on 02.02.21 at 10:32 pm
#128 the jaguar on 02.02.21 at 8:35 pm
@ SARA# 122.

Thank you for the compliment.
==============

It wasn’t one.

++++
yes, I knew that. lol

#158 Sail Away on 02.03.21 at 8:10 am

#82 Shirl Clarts on 02.02.21 at 5:49 pm

Cute, those hoodies. They don’t know what they don’t know.

I used to believe this quote.. “any decision is better than indecision.”.

Except if the decision involves buying GameStop. Sometimes it’s better to sit on your hands.

————-

Theodore Roosevelt once said: ‘In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing’.

Decision doesn’t need to mean action. A decision to monitor and watch is also a decision. Patience.

Also appropriate: ‘Don’t just do something. Stand there.’

#159 crowdedelevatorfartz on 02.03.21 at 8:21 am

@#143 Sara

Catfight?

(If anyone construes that as a derogatory gender slander please fee free to insert “Feline Fisticuffs” as a socially neutral, non binary description.)

#160 millmech on 02.03.21 at 8:42 am

https://www.marketwatch.com/story/a-perfect-storm-is-brewing-for-interest-rates-to-surge-says-this-bond-expert-11612352825

#161 The Woosh on 02.03.21 at 8:47 am

155 Schoolie on 02.03.21 at 6:39 am
Anyone here crying about Garth’s use of the word retard needs to reassess their reading comprehension and take the OSSLT. Yeah, the 10th grade literacy test. The man clearly indicated in his post that the terms used were how wallstreetbets Redditors described themselves. I thought this blog was a grown up corner of the Internet.

———————————

That’s where you missed the point. WORDS have power. Words that are meant to hurt lead to pain. Pain leads to hate. Hate leads to division and more words that cause more pain leading to more hate. Hate leads to conflict and then eventually to war. We know how that turns out.

Garth would never publish a word that starts with N or another that starts with C even if it was being used on Reddit. No one here has a comprehension problem. Critical thinking is what’s lacking and that’s why those who can think critically don’t take kindly to WORDS being used like toilet paper. WORDS have power. Lest we forget.

#162 IHCTD9 on 02.03.21 at 9:03 am

#154 Nonplused on 02.03.21 at 2:58 am
#220 IHCTD9 on 02.02.21 at 10:42 am
#186 Nonplused on 02.02.21 at 12:45 am
#147 IHCTD9 on 02.01.21 at 7:37 pm

I will give you the GM trucks. It seems the big three can still make trucks.
___

I’ll agree with that one, Ford/GM/RAM own the full size truck market. The Tundra is the only thing that looks like competition for the big three, but they are not stepping up near enough.

——————————–

My ride is a Ram 3500 Cummins Asian. I mention the engine and transmission because it is important considerations. I wouldn’t touch an “Eco-Boost” with a 10 foot pole, they are too expensive to fix and you are trading fuel economy for short engine life.

But a 350 (5 liter) regularly asperated engine in a truck will go you a long ways if you change the oil as advised.

Wouldn’t get the Dodge with the “Eco-Diesel” either. Fiat product, designed to go 80,000 miles and that’s it. The GM small diesel seems better but that is a Isuzu product, and Isuzu has a much better quality rating than Fiat.

So when you are buying a truck, the most important consideration beyond mileage is what engine and transmission does it have. The frame is going to hold out for you aside from the odd wheel bearing or bushing replacement.

And to note, I did not buy a Dodge. I bought a Cummins. I doubt I will outlive the engine, or the Asian transmission. Might have to rebuild the whole rest of the truck but the motor will still be going long after we both log off this blog for the last time.
____

The one thing I really like about GM is that they are STILL using the time tested (really, really, tested) LS V8 engine. Cam in block, with pushrods and rockers, I can still work on it myself. My truck has the Vortec 8.1 (and Allison trans), and it is an evolution of the old 454 from the early 70’s. Simple, easy to work on, but a definite gas guzzling dinosaur compared to today’s much more refined and efficient engines. Last 496 they put into a pick up was in 2005.

I hear you on “buying the Cummins”. It’s surely the most loved road going Diesel of all time in North America. There are forums on the Net dedicated exclusively to swapping old 12/24 valve 6BT’s into… well, everything else. I’d happily take a 12 valve 5.9 under the hood of my Sierra. It would tow just as much (if not more), but get 20+ mpg instead if the 10-11 I get now, and (as you said), go a million km before rebuild time. Sweet engines!

As far as the new small diesels go, I also think the Isuzu diesels are good, they’ve been involved in producing the Duramax for a long time, and the LB7 is another much loved engine. Also, (IMHO) generally speaking, you can count on Japanese products to be of good quality.

#163 Leotard the Leopard on 02.03.21 at 9:11 am

#52 Ponzius Pilatus on 02.02.21 at 4:26 pm
The tide went out and we found out who was swimming without shorts.

__________

SoggyShorts?

#164 Phylis on 02.03.21 at 9:18 am

#147 SimplyPut7 on 02.02.21 at 10:57 pm Sounds like you just click the ‘I accept’ button.

#165 Schoolie on 02.03.21 at 9:33 am

155 Schoolie on 02.03.21 at 6:39 am
Anyone here crying about Garth’s use of the word retard needs to reassess their reading comprehension and take the OSSLT. Yeah, the 10th grade literacy test. The man clearly indicated in his post that the terms used were how wallstreetbets Redditors described themselves. I thought this blog was a grown up corner of the Internet.

———————————
161. The Woosh
That’s where you missed the point. WORDS have power. Words that are meant to hurt lead to pain. Pain leads to hate. Hate leads to division and more words that cause more pain leading to more hate. Hate leads to conflict and then eventually to war. We know how that turns out.

Garth would never publish a word that starts with N or another that starts with C even if it was being used on Reddit. No one here has a comprehension problem. Critical thinking is what’s lacking and that’s why those who can think critically don’t take kindly to WORDS being used like toilet paper. WORDS have power. Lest we forget.

————–
you speak of the need for critical thinking yet everything you spewed out above supports censorship, political correctness and banning the “wrong” words. Only “clean” “good” words in your vision of the future right Woosh? Yet, it’s critical thinking that’s needed to discern the difference between a word used to harm and a word used to make a point. How ironic. Garth’s point was clear – maybe don’t trust the investing acumen of a group of Redditors who think nothing of calling themselves those words. That’s the point. His entire point right there. He needed to include the word so his readers would get his point. Maybe before pontificating about critical thinking you might read Fahrenheit 451, “Politics & The English Language” and 1984 in order to attempt to comprehend the world you think you want to live in. And yep, there’s a huge comprehension problem when you need the above spelled out for you.

#166 crowdedelevatorfartz on 02.03.21 at 9:34 am

@#161 Woosh
“That’s where you missed the point. WORDS have power. Words that are meant to hurt lead to pain. Pain leads to hate. Hate leads to division and more words that cause more pain leading to more hate. Hate leads to conflict and then eventually to war. We know how that turns out.”

+++
Eye rolls ?
OR
Antifa riots?
Take your pick.

#167 the Jaguar on 02.03.21 at 9:43 am

@#159 crowdedelevatorfartz on 02.03.21 at 8:21 am
Catfight?+++

I see it more like a’ dust up’ in a Hollywood Cantina, similar to those old western movies. Or maybe along the lines of going to a fight where a hockey game breaks out.
Yikes, someone has lifted a bar stool over Sail Away’s head! I better jump in….

#168 Sara on 02.03.21 at 9:46 am

#157 the Jaguar on 02.03.21 at 7:40 am
@#143 Sara on 02.02.21 at 10:32 pm
#128 the jaguar on 02.02.21 at 8:35 pm
@ SARA# 122.

Thank you for the compliment.
==============

It wasn’t one.

++++
yes, I knew that. lol

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

Yes, I figured you did.

#169 crowdedelevatorfartz on 02.03.21 at 9:48 am

Hmmm.

Seems like a clash with China over sovereignty in the South China Sea is edging ever closer…

https://www.citynews1130.com/2021/02/03/japan-expresses-concern-to-uk-over-new-chinese-maritime-law/

#170 Dharma Bum on 02.03.21 at 10:02 am

The picture today reminds me of how the side of my ’69 Cutlass looked after I drove my buddy home from the Jolly Miller (before it was converted into a Yuppie restaurant), with his head hanging out of the window, puking all the way.
I didn’t wash it off for about 6 months.

#171 Sail Away on 02.03.21 at 10:22 am

#161 The Woosh on 02.03.21 at 8:47 am

Garth would never publish a word that starts with N or another that starts with C even if it was being used on Reddit.

————-

Nimrod? Chucklehead?

No, those are fine. Better descriptors than Woosh anyway.

#172 The Woosh on 02.03.21 at 10:26 am

#165 Schoolie on 02.03.21 at 9:33 am
155 Schoolie on 02.03.21 at 6:39 am
Anyone here crying about Garth’s use of the word retard needs to reassess their reading comprehension and take the OSSLT. Yeah, the 10th grade literacy test. The man clearly indicated in his post that the terms used were how wallstreetbets Redditors described themselves. I thought this blog was a grown up corner of the Internet.

———————————
161. The Woosh
That’s where you missed the point. WORDS have power. Words that are meant to hurt lead to pain. Pain leads to hate. Hate leads to division and more words that cause more pain leading to more hate. Hate leads to conflict and then eventually to war. We know how that turns out.

Garth would never publish a word that starts with N or another that starts with C even if it was being used on Reddit. No one here has a comprehension problem. Critical thinking is what’s lacking and that’s why those who can think critically don’t take kindly to WORDS being used like toilet paper. WORDS have power. Lest we forget.

————–
you speak of the need for critical thinking yet everything you spewed out above supports censorship, political correctness and banning the “wrong” words. Only “clean” “good” words in your vision of the future right Woosh? Yet, it’s critical thinking that’s needed to discern the difference between a word used to harm and a word used to make a point. How ironic. Garth’s point was clear – maybe don’t trust the investing acumen of a group of Redditors who think nothing of calling themselves those words. That’s the point. His entire point right there. He needed to include the word so his readers would get his point. Maybe before pontificating about critical thinking you might read Fahrenheit 451, “Politics & The English Language” and 1984 in order to attempt to comprehend the world you think you want to live in. And yep, there’s a huge comprehension problem when you need the above spelled out for you.

—————————————

And now you’re trying to tell me what I need to do before I’m allowed to speak my mind? Who’s trying to censor who? Lol

To your other point, I think Garth can speak for himself. No need for you to reinterpret his words. I prefer to hear it directly from the horse’s mouth. I understood them just fine the first time around.

#173 The Woosh on 02.03.21 at 10:28 am

#166 crowdedelevatorfartz on 02.03.21 at 9:34 am
@#161 Woosh
“That’s where you missed the point. WORDS have power. Words that are meant to hurt lead to pain. Pain leads to hate. Hate leads to division and more words that cause more pain leading to more hate. Hate leads to conflict and then eventually to war. We know how that turns out.”

+++
Eye rolls ?
OR
Antifa riots?
Take your pick.

————————————————

Such a weak hand to play. I’m guessing you’re out of gas!!!

#174 Ponzius Pilatus on 02.03.21 at 10:30 am

#169 crowdedelevatorfartz on 02.03.21 at 9:48 am
Hmmm.
Seems like a clash with China over sovereignty in the South China Sea is edging ever closer…

https://www.citynews1130.com/2021/02/03/japan-expresses-concern-to-uk-over-new-chinese-maritime-law/
————————-
Not trying to be a grammar Nazi, but you’re always misspelling Hmm.

#175 David Hawke on 02.03.21 at 10:40 am

Hey sheeple, we`ve been had! It`s still perfectly legal to fly to the sun.

A good customer arrived last night, he boarded a flight at Pearson to San Salvador with a stop at Dulles which was significantly cheaper than the twice-weekly direct Avianca direct flight.

Soon only the elite will have the resources to fly! :(

#176 Penny Henny on 02.03.21 at 10:40 am

#156 BillyBob on 02.03.21 at 6:45 am

Me dear Faron,

So, at great risk of seeming indelicate, if I – in the true spirit of Greater Fool camaraderie – can be of um, service, do let me know. Never let it be said that I did not step up to help a fellow sojourner in need. No sir!

Obviously, the logistics will be a challenge. I ask for nothing more in compensation than your covering my travel expenses – I’ll bring my own wine. Unfortunately, those costs have recently increased by $2000. But considering the upgrade in IQ and physical attractiveness for your progeny, I’m sure you’ll agree that amount is trifling!

I remain, yer humble servant BillyBob.

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

Hi-larious.

Not always, but occasional you’ll find the hidden gems in the comments.

#177 Doug Earl Payne on 02.03.21 at 10:44 am

Higher interest rates? Bring it on, the sooner the better. That will go a long way to make Canada great again.

There’s been a lot of mention of Reddit over the last week or so. The only Reddit I’ve had anything to do with, or ever will have anything to do with is the CNR Redditt Subdivision, from Sioux Lookout to Winnipeg. It’s part of the VIA Transcontinental route.

#178 Penny Henny on 02.03.21 at 10:45 am

#168 Sara on 02.03.21 at 9:46 am
#157 the Jaguar on 02.03.21 at 7:40 am
@#143 Sara on 02.02.21 at 10:32 pm
#128 the jaguar on 02.02.21 at 8:35 pm
@ SARA# 122.

Thank you for the compliment.
==============

It wasn’t one.

++++
yes, I knew that. lol

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

Yes, I figured you did.

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

Well, that wasn’t much of a catfight :(

#179 Job#1 on 02.03.21 at 10:59 am

#161 Whoosh

“Words have power”

They certainly do. Look what you let them do to you!

#180 The Woosh on 02.03.21 at 11:00 am

171 Sail Away on 02.03.21 at 10:22 am
#161 The Woosh on 02.03.21 at 8:47 am

Garth would never publish a word that starts with N or another that starts with C even if it was being used on Reddit.

————-

Nimrod? Chucklehead?

No, those are fine. Better descriptors than Woosh anyway.

————————————————

So many labels. So sad that your first response is to demean and diminish. But that’s why WORDS are powerful. No wonder Garth asked you to step away. Your company must be an awfully enjoyable place to work at.

In any case…I must have struck a nerve…so…I win! And, of course you’ll feel the need for a rebuttal which means I win even more!! See the word play?

#181 SoggyShorts on 02.03.21 at 11:03 am

#163 Leotard the Leopard on 02.03.21 at 9:11 am
#52 Ponzius Pilatus on 02.02.21 at 4:26 pm
The tide went out and we found out who was swimming without shorts.

__________

SoggyShorts?
********************
Heh not I, my gutless move was to put 0.1% of my PF into NOK to get in on “the next reddit target”
In at $5
Up to $6.55 at peak
Out at $5.35
Made just enough to take the wife to a nice dinner. If that was something people were allowed to do anymore.

#182 Job#1 on 02.03.21 at 11:14 am

Whoosh

I figured out who you are.
You are one of those responsible for cancelling Wendy Mesley for reference to the N word.
Despicable.

#183 SeeB on 02.03.21 at 11:37 am

#156 BillyBob on 02.03.21 at 6:45 am

Me dear Faron

I remain, yer humble servant BillyBob.

—————————————————————

I rarely read such self-endulgent attempts to project one’s fragile ego. It’s like a circa 2010s 15 year-old that’s found MySpace for the first time.

Imagine trying to shame people for their own choice to procreate by caping as an environmental guy, all the while not caring one shred about the environment and the challenges it faces. There comes a point where trying so hard to call out hypocrisy only amplifies your own for others to see.

If you can’t assault the argument, attack the person, right? Wrong. We’re all hypocrites to some degree or another. Get over it.

#184 Faron on 02.03.21 at 11:41 am

#134 Nonplused on 02.02.21 at 9:29 pm

#116 Faron on 02.02.21 at 7:49 pm

But on further consideration, while I agree with your analysis as to what actually happened, I am not so sure it is appropriate for traders to be loaning out stocks that they borrowed. Or had they sold them, fine, but then the new holder can also lend them out? So as far as I can understand your explanation it seems kind of Enron like. There is only one egg, but there are 4 people that think they are getting breakfast. Something doesn’t add up.

Got me with the Peter Gabriel video. Hah! At least you didn’t RickRoll me.

This is how I see it: I don’t see anything wrong with the redditors ganging up and coordinating to squeeze the stock no more than I see several hedge funds ganging up to sell the stock short. It’s not how markets best function, but there are hundreds of ways the system is imperfect and any notion that “markets serve to distribute capital” is naively simplistic or hasn’t been true for a century.

The only way I can see to prevent a share from being sold short multiple times is some kind of tracking on individual shares and that’s just not going to possible save for some future application of blockchain tech.

As you can see in my example, while it seems like there are too few eggs for breakfast, it pans out and everyone gets what’s theirs. In your breakfast scenario, you forget that a couple players had signed up to regurgitate their breakfast to feed others baby bird like. The problem with having a huge percent of the shares sold short is liquidity and low liquidity is what drives volatile prices. With few shares openly trading all of that short interest and long interest has to rebalance through a very small pipe leading to trouble.

#185 Faron on 02.03.21 at 11:43 am

#176 Penny Henny on 02.03.21 at 10:40 am

#156 BillyBob on 02.03.21 at 6:45 am

Sorry, TL;DR. Sure it was a reel knee slapper tho.

#186 AFTR on 02.03.21 at 11:49 am

Thanks Garth for allowing the comment section to reveal the posters views and intolerance of others views, I relate it to the Covid, climate change, overpopulation, generational angst, etc.

I too had a 75 cutlass, not brougham, but in the early 90’s.

My best buy was a 65 chevelle with a 283 and 2 speed slushbox (best selling auto transmission ever) with a friend when we needed a ride to go on holiday to BC. (Alberts boys) we went halves on the 250 dollar car and by the end of the monthlong holiday he handed me 125 bucks and said thanks but its mine now.

That was bargain finder days, the trunk lid on that chevelle musta weighed at least 150 pounds.

#187 MaskArade on 02.03.21 at 11:58 am

Agree with you Garth, this wont end well, seeing multiple offers for crappie houses in Edmonton can tell you all you need to know about today’s real estate market.

#188 Piano_Man87 on 02.03.21 at 1:11 pm

Even though gamestop is plummeting, there is some fishy stuff going on.

Every WSB post I’ve read regarding silver says that they aren’t buying silver, it’s not a part of the short squeezes being attempted, and that Citadel owns silver options and are trying to distract WSB from their short squeezes.

WSB says don’t buy silver.

All the media websites (except for a few like CBC) are saying redditors are now going after silver. No clue why this is happening…

#189 meslippery on 02.03.21 at 2:05 pm

#114 Nonplused on 02.02.21 at 7:45 pm

#54 meslippery on 02.02.21 at 4:27 pm
Two people making $500 a week would be 52k
not too many people making that kind of coin in the mid 70s

————————————

I am pretty sure Garth dropped an inflation adjusted number. It is pretty hard to do meaningful comparisons over long periods of time without adjusting for inflation.

In 1967 you could buy a brand new Ford Mustang for about $3,000. A new one today can be $70,000. But comparing those numbers is useless unless you adjust for inflation. And other factors like the fact the new one has 500 hp and heated seats.
————————–
$3000 1967 Mustang adjusted for inflation is $23 000 today not 70k a few horses and heated seats cost a lot.

https://www.in2013dollars.com/us/inflation/1967?amount=3000

Found this 1975 to 1995 20years 5k more pay
It seems your right about adjusting for inflation.
Can I adjust my capital gains for tax purposes to inflation?

#190 meslippery on 02.03.21 at 2:06 pm

#114 Nonplused on 02.02.21 at 7:45 pm

#54 meslippery on 02.02.21 at 4:27 pm
Two people making $500 a week would be 52k
not too many people making that kind of coin in the mid 70s

————————————

I am pretty sure Garth dropped an inflation adjusted number. It is pretty hard to do meaningful comparisons over long periods of time without adjusting for inflation.

In 1967 you could buy a brand new Ford Mustang for about $3,000. A new one today can be $70,000. But comparing those numbers is useless unless you adjust for inflation. And other factors like the fact the new one has 500 hp and heated seats.
————————–
$3000 1967 Mustang adjusted for inflation is $23 000 today not 70k a few horses and heated seats cost a lot.

https://www.in2013dollars.com/us/inflation/1967?amount=3000

Found this 1975 to 1995 20years 5k more pay
It seems your right about adjusting for inflation.
Can I adjust my capital gains for tax purposes to inflation?
http://www.ccsd.ca/factsheets/fs_avgin.html