Losing faith

“Love your blog,” says Phil from Hamilton, worming his way into my graces with a slurpy MSU. “My life has changed dramatically since the day a good friend pointed me towards it.  I am a devout follower and I thank you.”

Okay, but Phil’s Garthonian devotion is being shaken by current events. The world, he notes, is nuts. Up is down. Risk is safe. Caution is loss.

In the recent & ongoing real estate climate, where despite EVERYTHING people still ignore any logic and dig themselves further into a debt-slathered grave, why should those that so devoutly follow your tidings not employ a “if you can’t beat them join them” mentality?

If human behaviour/idiocy (in this context “FOMO”) can apparently be so depended on, with a government that shows little inclination of stemming this behaviour, why should we responsible people not get in on the action?  Or is it already too late?

I read all your posts and agree with all of your points, but what if human behaviour/idiocy finds a way to surpass even all these?  Am I missing something that could actually curb the current house-buying craziness? I fully expect an eviscerating but would love to know what points and/or assumptions of mine are wrong.

Actually he’s not wrong. Logic is but another victim of the virus. All around us souls are making decisions based on emotion and groupthink. Reason would dictate that swallowing big debt when rates are low and destined to rise is a really bad idea. Rational people would not be competing for houses at any price when they’ve never cost as much before. After all, we don’t buy anything else that way. In the midst of a pandemic, a recession, economic crisis and job uncertainty putting all your money into one asset and hiking living costs seems rash. Believing an indebted nation won’t goose taxes, that your boss will never want you back at work or that rural properties, lacking stores, hospitals or transit, are suddenly mainstream seems rash. Emotional. Reactive.

And we haven’t even mentioned GameStop yet. Or Tesla. The kiddies on Reddit. Bitcoin, or the dog crypto. The Hoodies. Meme stocks. And the ludicrous NFTs. After an entire year of Covid (the sad anniversary is today) never have we seen such FOMO swelling assets or speculation making people crazy. Combine that with pandemic-induced YOLO, governments throwing money around irresponsibly and the viral destruction of our societal work ethic, and we’ve ended up here. The everything bubble.

Time, Phil, for a small refresher on the science of behavioural finance. The premise (and it’s true) is that people do things primarily for emotional reasons and are unable to overcome personal biases. That leads to herd investing. Asset inflation (or destruction). And distorted markets. Like now.

In the last few days, Oxford prof Greg Davis warned that Covid has really messed with our heads, so that emotional investing has hit a new peak with people piling into inflated assets – just because everyone else is.

 “We currently have the perfect ‘storm’ for emotional investing.  Following the Coronavirus crash in the first quarter of last year when stock markets saw big falls, we are now in a bull market, with markets around the world rising.  Optimism is higher because of hopes around the vaccine roll-out and stimulus programmes.  However, there are huge economic problems ahead around unemployment and huge public spending deficits for example, so we should expect the unexpected in the markets over the coming months.

“The rise in the value of Bitcoin has also led to a crypto-assets ‘gold rush’, with retail investors piling into an incredibly volatile asset class that most don’t understand. The pandemic means many investors are currently highly emotionally sensitive and have a shortened emotional time horizon which increases the appeal of get-rich-quick gambles.”

There are always reasons to invest your money, buy a house or take a calculated chance. Lately a lot of those gambles have paid off. But with each tick higher in price, risk augments. Phil (and everybody else) should be aware certain biases make us do weird things that in the absence of a crowd, we would never.

For example, ‘disposition bias’ compels people to hang on to losing investments until they (maybe) recover because they fear admitting to a mistake (GameStop). So they gamble that the pooch won’t go lower. Equally, ‘confirmation bias’ makes us put weight on information we agree with (‘interest rates will never rise’) and discount what this pathetic blog (and economics) says. ‘Recency bias’ leads us to believe what happened recently (like WFH or romping suburban house values) will last forever. And ‘familiarity bias’ seduces us into investing in stuff we know about (like houses) even realizing this may lead to dangerous debt and a seriously unbalanced life.

So, Phil, you can follow your brain. Or your pants. But never both. Amen.

192 comments ↓

#1 Sail Away on 03.11.21 at 1:05 pm

“So, Phil, you can follow your brain. Or your pants. But never both. Amen.”

————

So I tell my dogs. And what do they choose?

Bacon. Every time.

Thus concludes Management Lesson #1.

#2 Millennial 1%er on 03.11.21 at 1:07 pm

Familiarity bias basically defines my relationship with crypto

#3 Concerned Citizen on 03.11.21 at 1:14 pm

I certainly appreciate where Phil is coming from. This country stopped rewarding responsible people long ago – now it’s the reckless speculators that get the bulk of the spoils. And perhaps the most reckless speculators of them all control the country’s printing press.

Maybe it really is different this time. I honestly can’t see the Bank of Canada ever having an overnight rate that is positive (in real terms) ever again. They’ve blown the asset bubbles so big, that if money ever cost something again the crash would likely be epic.

So if Tiff and the gang are looking to Venezuela for monetary policy inspiration – as it would seem – then maybe Phil and I are greater fools for not getting on board at any price. After all, if real estate has gone up 20% this year, maybe it will go up 40% next, 80% the year after, etc.

It is next to impossible to discern the value of anything when the real discount rate is zero or negative. The result is massive speculation on an almost never before seen scale, which is what we’re seeing now.

#4 crowdedelevatorfartz on 03.11.21 at 1:15 pm

A year ago people were stampeding each other for ….toilet paper.

Now?

Houses.

#5 VGRO and chill on 03.11.21 at 1:19 pm

It’s important to point out that speculative bubbles work both ways. If everyone is buying something merely because they think the price will go up, they can easily flip and start selling like mad because they think the price will continue to go down. This is why markets tend to overcorrect.

#6 crowdedelevatorfartz on 03.11.21 at 1:20 pm

@#244 wrk.dvr
“In your scenario, why even show up for more?

I stopped selling time 32 years ago, and I still wish I had more of it to do what I do.”

+++

Yep.
I hear ya.
Coupla more years, I’ll be done, finito, sell the biz and retire.

#7 Swanson on 03.11.21 at 1:21 pm

I have been pondering the same questions as Phil, so thanks for writing in.

And thanks Garth for the post.

#8 Paterfamilias on 03.11.21 at 1:22 pm

”With each tick higher, … risk augments.” Seems like heading out to buy bulbs, just at the end of the tulip mania.

#9 Trimtab on 03.11.21 at 1:34 pm

Wonderful, in every way.

#10 Linda on 03.11.21 at 1:35 pm

Herd mentality is scary stuff. Bubbles burst. Lots of historic examples. Problem this time round seems to be that institutions that normally apply the brakes are instead joining the herd. How long can this bubble sustain itself with CB & government support? Because it sure seems like that is what is happening here. Do not see this ending well.

#11 Irrationality on 03.11.21 at 1:38 pm

https://seekingalpha.com/article/4408864-we-dont-acknowledge-our-get-rich-quick-urge-because-its-irrationality-shames-us

#12 Cheese on 03.11.21 at 1:39 pm

Disposition bias very much got me. Still holding a lithium mine investment for seven years, despite battery and lithium prices at all time highs, it continues to languish (still one of the most shorted stocks on it’s market (ASX))

I really should bite the bullet and get rid of it…

Bias is real and very easy to fall prey to.

#13 ogdoad on 03.11.21 at 1:44 pm

Phil, dood – Turn off the news and for gods sake stay away from SM and HGTV. You’ll find you may start feeling human again – like we are. Feelings FOMO will recede, and as an onlooker, seem absurd.

Og

#14 Doug in London on 03.11.21 at 1:52 pm

The rise in the value of Bitcoin has also led to a crypto-assets ‘gold rush’, with retail investors piling into an incredibly volatile asset class that most don’t understand.
—————————————————————–
I don’t get it and never will. Shouldn’t they have been piling money into stocks and ETFs that invest in things we actually use like banks, utilities, oil companies, REITs, and other useful goods and services a year ago when they were all on sale? As for investing by emotions, my emotions were at a record setting high when scooping up all those assets DIRT CHEAP a year ago.

#15 Sarah Taunton on 03.11.21 at 1:53 pm

My aunt is and has always been very conservative and cautious with her money. She remembers her mother talking many times during her life about the great depression and the 1930’s. My aunt first remembered this when she was 9 years old in the late 1940’s.

After my uncle passed away, just a few years ago from today, 2017, she sold the house in 2018, paid off her small mortgage, has no more debts is now renting with a good long time friend and took all her RRSP’s, non-registered and put most of in 10 year GIC’s and OSB’s.

She has my uncle’s deceased CPP, OAS and some laddered GIC’s she uses if needed for unexpected expenses. About 43% income is from interest and 57% is from CPP, OAS for a combined $49,000 a year.

Compared to many of her other family and friends which are in deep debt, having no to little savings, investments etc., getting reverse mortgages at 5%+ compounded semi-annually interest rates, fees etc., keep on borrowing to pay for property taxes, other bills she is doing okay.

She is net $1,900 a month after all her living expenses, taxes etc. so she is in good financial shape. Until most of her fixed interest investments mature, 90% of them, GIC’s, OSB’s mature in 2028 her interest income is set up just fine.

#16 Rook on 03.11.21 at 1:57 pm

Am I the only one who’s feeling like anybody who: lives below their means, stays out of debt, saves money for a rainy day, lives lean, is being actively punished for doing so?

We have somehow stopped being a nation of savers, and become a nation of, “As long as you have the cash flow to make the payments, go wild.”

Should the S really HTF, I can only wonder what class of ‘wealthy’ the people who have savings will get thrown into, and what will get confiscated to save those in trouble.

What I don’t understand is WHY one should be punished for saving? Of what benefit to the government is it to have yet ANOTHER person consuming government handouts, and not contributing?

#17 RMTL on 03.11.21 at 2:00 pm

I share the same feelings as Phil.

Avid reader of your blog for years, I couldn’t have agreed more on what you were saying.

I have taken the arguments you were sharing back at home to cool off my GF housebuying horniness. Back in 2017, 2018, 2019, 2020, and now 2021. Home prices were too expensive then, and sure they are now.
However if I now dare to mention your articles, I get a “You and your stupid blog !!! We could have bought that house (a house that we visited and liked) 4 years ago. It just sold again for more then twice the value. It is now forever out of reach thanks to you !”.

So back to the philosophy of making decisions with our brain VS our pants and to Phil’s comment:

Wouldn’t be just smart to just aknowledge that all that housing crazyness doesn’t make sense at all for many economical reasons… but still go with it because we know Mr Socks is gonna be re-elected and he won’t be deceiving the housebuying fools voting for him, thus putting whatever gas on the fire necessary to maintain this insanity ?

#18 Michael on 03.11.21 at 2:00 pm

Garth, Thanks for your blog.

Because there “are huge economic problems ahead around unemployment and huge public spending deficits for example”… should we try to “rebalance” individual stocks?

I have a mix of ETFs, and individual stocks but for example.. BMO.. why not sell at these prices and wait for things to correct. Generally my philosophy is hold for life and I understand I would be missing out on dividends, but things can’t remain this high… (specifically talking about BMO).

Any words of wisdom is appreciated. Thanks!

#19 Faron on 03.11.21 at 2:00 pm

#191 Ponzius Pilatus on 03.10.21 at 10:50 pm
#129 Faron

—————-
I’m not a quantum physical guy, but I read somewhere that on a sub-atomic level, particles can go through a brick wall.
Ergo, if you could do a “honey, I shrank the kids”, a person indeed could walk through a wall.

Yep, it’s true. Statistical Mechanics extends quantum mechanics to every-day scales to connect what we know about molecules and atoms to the behaviour of solids and gasses. It tells us the “thereness” of physical objects of almost any size is a statistical measure. But, for you to walk through a wall, all of the particles in that wall have to, by chance, move in the same direction for a period of time. The chances of that happening are extremely small for obvious reasons.

At extremely cold temperature, elementary gasses and fluids (liquid helium) have been observed to do this — move in concert. That is the Bose-Einstein condensate. The random walk no longer applies and all the atoms groove in sync like a group of Albertan line dancers. And, no, you will never have to scrape such condensate off your windshield even when Saskatoon is at its coldest :-).

#20 John Doe on 03.11.21 at 2:02 pm

Gone… from this country.

One PhD in Computer Science specializing in Machine Learning, with Masters degrees in Mathematics, Physics and Statistics.

With Venture Capital barking at his heals. His brothers are soon to join him in the USA, where you can still buy a home in a sleepy town for what it’s actually worth.

In Canada? You can buy an inflated home from a corrupt Real Estate agent who is in league with drug dealers and criminals from abroad who are laundering their money using the BoC and the CRA’s “home investors plan”.

Don’t worry, be happy. The BoC and the CRA could care less what you think.

#21 Fragrant Cookie on 03.11.21 at 2:03 pm

The market can stay irrationally bubbly longer than most people can stay disciplined.

#22 Alberta Ed on 03.11.21 at 2:07 pm

A lot of young Canadians are heading south to greener pastures. Doesn’t bode well for Canada when potential immigrants look at the cost of housing/living here compared to the US, not to mention Liberal policies that have driven away international investment.

#23 SnowOwl on 03.11.21 at 2:19 pm

#17 RMTL
Just watch the Harry and Meghan interview and realize that no matter how much you sacrifice and give up for her, it will never buy you any sort of loyalty or equity.

#24 Dogman01 on 03.11.21 at 2:23 pm

“The best lack all conviction, while the worst
Are full of passionate intensity.”

I nibbled at Bitcoin, more of a sign I am losing faith with TPTB than confidence in Bitcoin.

#25 baloney Sandwitch on 03.11.21 at 2:23 pm

So invest in stuff which is not bubbly – like oil & gas stocks, office and mall reits, emerging market debt and stocks.

#26 Tanya Becker on 03.11.21 at 2:27 pm

Sarah, my cousin Tammy a 35 year old is the same way. She is very unusual for most people her own age.

Her father died when she was just 11 years old and her mother and aunt helped raise her. She saw her mother struggle for years raising her. She is very driven, ambitious with her career, job opportunities but very cautious with her money. I will say this about her, she understands how to take care of her won money.

She has $300,000 in her RRSP’s and TFSA’s, $25,000 in a reserve account and no debts. She puts away $3,000 a month and still manages to go at least 1 vacation a year until covid happened. She rents with a roommate and saves alot on rent and other expenses.

I guess the big shock when she was a kid really made her think and act this way.

#27 mark on 03.11.21 at 2:49 pm

If real-estate is up so much the last 12 months why have BMO REIT etf that has 23 companies in its composition share price has not recovered along with stock market.

This is NOT because its all office space in this riets ETF, their are lots of residential, commercial, private, hospital, shopping malls in their yet share price has not recovered like everything else?

#28 Doug in London on 03.11.21 at 2:49 pm

@Rook, post #16:
I agree with you fully, it seems like sensible and rational financial management has gone the way of the dinosaurs. So, why do governments do nothing about it? Because they, as we’ve seen recently, are in on it too. Borrow recklessly now, and to hell with any future consequences.

#29 Linda on 03.11.21 at 2:52 pm

#16 ‘Rook’ – I hear you. Thing is, actions having consequences doesn’t get considered by those piling on the debt. Nope, when the bill comes due it will be blamed on anyone or anything other than their own actions. Further, they will demand the government ‘do something’ & obviously anyone who isn’t mired in debt & has assets to boot will be expected to pay the tab. It’s ‘only fair’ & anyway, those folks obviously gamed the system somehow so should be punished for it. Misery loves company!

#30 mark on 03.11.21 at 2:54 pm

I also see and read that their is a lot of angry people who listened about RE and now 4 years later the house they went and looked at and liked, just sold again for 50% more! Moral of the story, no one has a crystal ball and no one knows where any of this is going…… do what is right for you…..

#31 ElGatoNerodeYVR on 03.11.21 at 2:56 pm

Not sure about rest of the readers but in real terms the inflation experienced in the past year was keeping it simple at 10% . Fixed rate mortgage, no travel or eating out so that kept things in check. Now when everything reopens all bets are off as to the real pace of inflation.
I understand that our host dismissed hyperinflation as a concern,however even 6-10% a year overall will compound really quick .
Housing no matter how illiquid does serve as the only hedge left against that sort of inflation hence the explosion in places even remotely close to a big city or those that are seen as retirement options. Besides every house will sell if the price is right in the right location.
I still think that one should have 30-40 % of net worth in real estate and ofcourse no more than 50% of net take home pay in house carrying costs including utilities( hydro,gas,water).

#32 Stoph on 03.11.21 at 3:01 pm

#18 Michael on 03.11.21 at 2:00 pm

——————————————————————-

Might I suggest rebalancing if you think things are too frothy and you want to lock in some of the gains.

#33 Dolce Vita on 03.11.21 at 3:01 pm

It will be like the ending of the Big Short.

It will take longer in Canada to happen since when it comes to RE Cdns would rather commit Seppeku than part with their “Precious”.

Sad as that read, you all know that it is true.

#34 Concerned Citizen on 03.11.21 at 3:04 pm

#20 John Doe,

Unfortunately I think you’re bang on with your last point – the BoC and CRA (and more broadly the government) could care less what you think. For every skilled young person essentially forced out of their own country, they’ll bring in two poor SOBs to which they’ll quickly attach hundreds of thousands of debt for a 300 sqft shoebox in the sky.

I saw a comment on another site the other day that said we need to tone down the immigration rate temporarily – for the immigrants’ sake! The point is well taken – where are these new immigrants going to live? Bringing in 1% of your population in immigration each and every year while existing Canadians can’t afford to live is just absurd. There is no cohesive policy at play here. Perhaps not surprising – we live in an era where the solution to every problem is to print more money.

#35 Leftover on 03.11.21 at 3:05 pm

It’s acknowledged that Canadian real estate is about 40% more expensive than the American equivalent, and that it makes up about double the share of our GDP that it does in the USA.

Is it any wonder that Tesla, Apple, Goldman Sachs, Moderna and Pfizer, et al, are American companies? Or that we’re months behind them in our (beggars can’t be choosers) vaccine roll-out?

America, being the land of the free, will party on its $1.9 trillion, while we “invest” in houses because we don’t know what else to do. But that party will stop in 2022. As Churchill said when he was accused of being hungover in Parliament, “Yes, but I will feel better tomorrow, while you, sir, will still be ugly”.

#36 Stone on 03.11.21 at 3:07 pm

#16 Rook on 03.11.21 at 1:57 pm
Am I the only one who’s feeling like anybody who: lives below their means, stays out of debt, saves money for a rainy day, lives lean, is being actively punished for doing so?

We have somehow stopped being a nation of savers, and become a nation of, “As long as you have the cash flow to make the payments, go wild.”

Should the S really HTF, I can only wonder what class of ‘wealthy’ the people who have savings will get thrown into, and what will get confiscated to save those in trouble.

What I don’t understand is WHY one should be punished for saving? Of what benefit to the government is it to have yet ANOTHER person consuming government handouts, and not contributing?

———

My suggestion is don’t live below your means, just within them. You’re likely not feeling good about it because you’re probably overdoing it. That’s just a mindset shift. It’s probably best to take a step back and try to take another look at what you’re actually doing. If you still think you’re depriving yourself, maybe just ratchet back your savings/investing rate in favour of discretionary spending.

For myself, I will upfront, allocate how much goes to savings/investing, needs, and wants over a given period (if you notice, savings/investing takes the priority position in that list of 3). At this time, I’m happy and satisfied with how much I allocate towards each of those categories.

As for worrying about the powers that be confiscating your wealth, I wouldn’t. Gouvernments are slow to react while private sector financial institutions are very eager to help you minimize that risk. Worst case, ETFs are easy to liquidate to cash and wire out of the country.

#37 -=withwings=- on 03.11.21 at 3:13 pm

@#17 RTML
Wouldn’t be just smart to just aknowledge that all that housing crazyness doesn’t make sense at all for many economical reasons… but still go with it because we know Mr Socks is gonna be re-elected and he won’t be deceiving the housebuying fools voting for him, thus putting whatever gas on the fire necessary to maintain this insanity ?

This. Just buy a house Phil. In five years you’ll thank me. Without drastic action these bubbles don’t burst. They just top out.

I’m living through my third bubble now. Los Angeles 2000-2005. Toronto 2009-2015. Ottawa 2020-???. Same pattern each time. The complainers get nothing, the buyers win. A house on our street sold for 519 last fall. No one ever moved in. Just listed for 670 on Monday. Same pattern each time. My wife and I were like “We knew this would happen, why didn’t we get all over it at 500k?! We knew!”. Alas, we did not and are OK to sit out this one :)

#38 JSS on 03.11.21 at 3:14 pm

Since working from home, i have noted the following:

– I don’t shower everyday like I used to. Now every second day
-Less deodorant
– Sometimes I forget to brush my teeth in the morning
– I wear mostly the same navy blue sweats my wife bought me from the Gap outlet back last november
– my work pants are very snug around the waist, as i just let the drawstring around my sweats loosen
– my neck and back hurt from working from the kitchen table
– I don’t go to Tim’s or McDonald’s as much as i used to, so there’s a bit of money saved
– When I go for a walk around the neighbourhood, permitted during my scheduled lunch hour at Noon, I meet other professionals walking around too. We wave at each other as we walk far away from each other. Sometimes, we yell “HI!!!!” from far away
– I still have a half tank of gas in the car, so i’m only filling the gas tank once a month

#39 Brian Ripley on 03.11.21 at 3:15 pm

My six big Canadian city SF detached price chart is published with FEB data:
http://www.chpc.biz/6-canadian-metros.html

On the chart as well, is a plot of the Average Price of Vancouver, Calgary and Toronto Condos.

It remains interesting to note that the average of the summed prices of Vancouver + Calgary + Toronto condos is 15% higher than a median priced Montreal SFD (blue plot line).

Ex-Calgary (dashed plot line), it was 45% higher.

In FEB 2018 the metrics were 73% and 106% higher respectively!

Montreal and Ottawa especially continue to boom.

#40 Rochdale GM on 03.11.21 at 3:16 pm

Like others, I’ve also been feeling like Phil. I was not in a rush to buy another property after selling the oversized house in 2012. But these days, I have to expend considerable energy every day staying calm and focused to NOT empty my accounts to buy a place to live in. As a senior female, I am now suffering from fairly severe residential insecurity affecting my mental health. And when I hear the BofC announce they’re waiting for signs of inflation… it’s really difficult…

#41 Rustom Kavasji on 03.11.21 at 3:18 pm

The key issue here is that this “everything” bubble has been generated by the conduct of CB’s and governments constantly interfering in the free market by endless currency creation and interest rate.

Phil can’t really be blamed for wondering what most of us are thinking, which is whether the BOC will ultimately go down exactly the same road that the FED is doing, i.e. pumping money till the point where debt inflated away and hyperinflation sets in. As crazy as that sounds, the reality is that it’s been done time and again in history.

So Phil, if you believe that the current trajectory will continue, than yes, paying back debt in debased fiat currency is exactly the way to go. But if you believe the opposite, i.e. at some point the CB’s and government will pull the rug out from under the people’s feet, well than the opposite deflationery mess will result.

The best course of action for the government and the people would be to let the bubble burst now (i.e. deflation) but history shows they generally go the other way, till they reach the end of the road (Hint. Weimar, Venezuela etc).

#42 Prince Polo on 03.11.21 at 3:18 pm

I choose to invest in myself:

biweekly contribution to RRSP
+monthly pay down of margin loan
+daily blog dog devotion to the TI brain trust
=preparation for the biggest eye-roll when the over-mortgaged collective starts crying their crocodile tears!

#43 an investor on 03.11.21 at 3:20 pm

I agree with John Doe #20.

I now spend hours each day looking at American RE in places like SW Florida where $250K can buy you a 2 bedroom condo on a golf course in a town where Happy Hour is not illegal.

Canadians are getting screwed.

#44 Hilroy on 03.11.21 at 3:24 pm

The quickest way to pay down the debt is – every adult female in Canada starts an Onlyfans page. IMHO.

#45 Adam on 03.11.21 at 3:25 pm

“Reason would dictate that swallowing big debt when rates are low and destined to rise is a really bad idea.”

So when should people swallow big debt? When rates are high? Or should people never swallow?

Did you miss the word ‘big’? – Garth

#46 crowdedelevatorfartz on 03.11.21 at 3:26 pm

@#16 Rook
“What I don’t understand is WHY one should be punished for saving? Of what benefit to the government is it to have yet ANOTHER person consuming government handouts, and not contributing?”

+++++

Yup.
Unfortunately the idiots in charge only care about the next election.
There are more “have not” voters than “have” voters….

#47 Tron Light on 03.11.21 at 3:31 pm

DELETED

#48 Sara on 03.11.21 at 3:32 pm

#40 Rochdale GM on 03.11.21 at 3:16 pm
Like others, I’ve also been feeling like Phil. I was not in a rush to buy another property after selling the oversized house in 2012. But these days, I have to expend considerable energy every day staying calm and focused to NOT empty my accounts to buy a place to live in. As a senior female, I am now suffering from fairly severe residential insecurity affecting my mental health. And when I hear the BofC announce they’re waiting for signs of inflation… it’s really difficult…

=======================
If it makes you feel any better, you are not the only non-young person who got out of the housing market and made the mistake of not getting back in at the right time.

My spouse and I sold our family home in a small city in southern Ontario in 2012 to move to Ottawa due to a job relocation. Although we looked for a new home when we first moved here, nothing piqued our interest, so we decided to rent until our family got smaller before buying back in. I kick myself now for that decision, but what can you do?

#49 IHCTD9 on 03.11.21 at 3:40 pm

Times like these test your Stoicism Phil.

Don’t worry about what others are doing, thinking, succeeding at, or failing at. What matters is you own plan and the milestone you need to pass.

Look on the bright side, when all this is over, when talking about RE; no one will say:

“Oh, that’ll never happen!”
“It’ll never go that high!”
“Nobody’s that stupid!”

…ever again, because what happened here in Canada.

#50 binky barnes on 03.11.21 at 3:40 pm

I lost my senses last night! I actually believed–albeit briefly–that our PM will not be able to solve this housing mess. But I have since come to my senses. Of course he can solve it. He solves problems, that is what Mr. Justin Trudeau does.

So I would advise Phil to put his faith in the PM. He has the economic well-being of Canadians at the top of his list. So you see Phil, there is absolutely nothing to worry about. Nothing!

BB

#51 WHATEVER! on 03.11.21 at 3:41 pm

So full steam ahead to endless DEBT Town?

Terminus: failure of Canadian Dollar? Failure of USD?

BORROW, BORROW, BORROW!

Hipster and millennials had it right? Who cares!

Covid helped people realize that no one lives forever, but the memories you make, even on borrowed money you can take with you!

Meanwhile….$2.3M for this lovely 3bdrm with a 12×11 master prison cell right on the “pond” which is really a water treatment reservoir with lovely aromas all summer long can be yours today! Another bedroom 7″ wide! Probably will be sold by Sunday.

https://www.realtor.ca/real-estate/22901647/86-ellis-ave-toronto-high-park-swansea

#52 Sara on 03.11.21 at 3:43 pm

@ #40 Rochdale GM “But these days, I have to expend considerable energy every day staying calm and focused to NOT empty my accounts to buy a place to live in.”

My 2 cents. Keep on staying calm and don’t empty those accounts to buy an overinflated asset. If you do that, you may end up regretting it big time. Invest your money (houses are not the only thing going up in value) and learn how to appreciate the pros of renting.

#53 WHATEVER! on 03.11.21 at 3:46 pm

Yo Dolce Vita,

Come back visit Canad-ly in 2023. It will be just like the Lira days soon!

Dolce Vita at Tim Hortons: “Un espresso per favore”

Server: “That will be 3000 CAD-lira Signore.”

#54 Tron Light on 03.11.21 at 3:47 pm

#47 Tron Light on 03.11.21 at 3:31 pm

Why deleted?

Sick of your Covid-denial and anti-vax messages. You are now gone. – Garth

#55 WHATEVER! on 03.11.21 at 3:48 pm

Liberals identify themselves with color RED!

How did we not pick it up? It was right there all the time!

Red means STOP. Reds are commies! We should have known!

What does RED make you think of?

OH YEAH….Canada…in the RED! DEEP RED!

#56 Greene deal on 03.11.21 at 3:51 pm

#5 VGRO and chill

Garth wrote about Canada’s housing bubble back in 2008. He pointed out Canada had rampant speculation around that time and so far the speculators and flippers have not paid the piper. But they will. Boom – bust. Nothing new here. The herd will learn their lesson the hard way.

It’s funny how the herd thinks rates will never rise and now, apparently, that the free money falling from the sky will never end. A tough reckoning is in Canada’s future.

Stay positive. There will come a time when you will realize that ignoring the current FOMO was the play that kept you from becoming a victim of the housing market’s catastrophic price collapse.

#57 Dolce Vita on 03.11.21 at 3:56 pm

It’s just another Covid-19 day on Planet Earth people.

What was unprecedented today becomes commonplace tomorrow. Expect the unexpected. Grin and bear it.

As all good things must come to an end, so will the bad.

Light at the end of the tunnel, Vax Canadense.

——————

Speaking of bad, I am surprised at how the variants gain voracity in a short time.

Canada Variant World:

+260% cumulative cases in 17 days (Feb 25 to Mar 9, 800 to 2879).

Trend line is a 3rd order polynomial, 99% fit, steep enough but nowhere near exponential and hoping it stays that way:

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

Regardless, hospital/ICU beds not filling up so far. A GOOD thing.

Canada’s economy does not need more/continued lockdowns due to the variants exacerbating an already whily Wild Covid-19.

#58 Diversified in Mississauga on 03.11.21 at 3:57 pm

#18 Michael
——————-
If you have been reading this blog for any length of time, you will understand that you simply can’t predict or time when the market will correct.
Invest however diversified you feel comfortable with – when you are able to.
Who among us thought the DOW was due for a correction at 25,000, then surely at 30,000?
This advice and $2 will get you a coffee.

#59 Armpit on 03.11.21 at 3:58 pm

In any market, there is a percent of doom and boom believers.

Until one side is less than 20% on either side of the pendulum, Momentum will stay the course.

I don’t believe we reached that yet – hence the ride continues… but it’s a matter of when do you get off before it’s all downhill and you fall big time.

No Worries though. T2 will pick you up and tell you the System is to blame, and will carry you through to make the same errors on the backs of the guys like Phil.

#60 The Totally Unbiased, Highly Intelligent, Rational Observer on 03.11.21 at 4:01 pm

“The world, he notes, is nuts. Up is down. Risk is safe. Caution is loss.” — Garth

And even worse, evil is good, good is evil, and the so-called Conservatives under Erin O’Toole are now Liberal Lite. What is Canada coming to?

It looks like the only real choice that people in Canada are being offered currently is between Maxime Bernier’s People’s Party of Canada and the Lib/Con/NDP/Green enemy of all good.

#61 Greene deal on 03.11.21 at 4:03 pm

#21 Fragrant Cookie

Bubble markets often turn on a dime and the catastrophic price collapse quickly replaces FOMO with the fear of not being able to sell fast enough.

Those with enough discipline to stay out of the bubble always get rewarded with the opportunity to buy at cents on the dollar.

#62 yorkville renter on 03.11.21 at 4:15 pm

you can follow your brain. Or your pants. But never both

NOT TRUE! I married my wife, after all.

#63 Dolce Vita on 03.11.21 at 4:20 pm

My cousin tells me they finally finished vaxing Italia’s 80 year olds.

Now they are going to start to vax the 70 year olds.

I guess I’ll find out soon enough (or much, much later) how many of them Covid didn’t kill.

—————————

Meanwhile, EC President Ursula von der Leyen wants to spend €530 million to cover the costs of medical & protective equipment, emergency support, prevention, monitoring & control of the spread of the disease [Covid-19].

That woman is perpetually late to the table. Honest to God, I kid you not.

Yet another Covid-19 day in the EU.

https://twitter.com/vonderleyen/status/1369982149869383680

#64 Readiness on 03.11.21 at 4:22 pm

#17 RMTL

You assume it is possible to maintain permanently rising house prices by continuing to artificially stimulate the market with low rates and printing free money for everyone.

Your assumptions are wrong. History shows that the “growth” produced by extreme money printing is short lived and has severe consequences when taken away. If left in place the country will also face severe economic consequences.

If it was possible to print money to infinity to create or maintain permanent prosperity then every poor country in the world would be rich and there would have been no poverty or starvation over the past 100 years or more. It has been tried many times and has never worked. And it won’t work this time if that is where this is headed.

Near-zero mortgage rates work for some time but inevitably wear off. The housing market needs lower and lower rates to be stimulated enough to keep prices rising while allowing enough first time buyers to enter the market at the bottom. There are examples of housing bubbles where rates were slashed to zero shortly after the price correction began but that didn’t stop the catastrophic price correction.

The continuation of near-zero rates and printing to infinity will not prevent the inevitable for Canada’s housing market.

#65 Adam Smith on 03.11.21 at 4:24 pm

Didn’t buy any but GME is at $266 now. Wild.

You know the government done screwed the pooch when being deeply fiscally irresponsible starts to seem prudent.

Basically like standing behind a guy at the craps table and telling him that if he takes his life savings and takes out a massive loan and puts it all on black that you will triple it if he wins. Of course if he loses he is ruined forever but statistically that starts seeming like a pretty attractive play.

#66 Barb on 03.11.21 at 4:53 pm

At the grocery store today, the new cashier is an approx 75 year old gentleman. Bet he has a sad tale to tell.

#67 Phylis on 03.11.21 at 4:58 pm

My 2 cent story. Remember kmart and the blue light special? Anywho, the day was the ‘shamwow’ demo-day. No, it was well before Vincent. The mic’d up demo man ran the spiel and a mini crowd warmed and formed and followed his every motion. I stood a little ways back and had more of an interest in the spectacle other than the pitch. Well as the pitch was thrown, the sell began. How was the crowd to react? The two for one pricing and ‘today only’ struck a note, but no takers. Then a man appeared with the fist of dollars and the first sale was made. All of a sudden everyone was reaching for their purses and wallets. I couldn’t believe it. As I had observed from a distance, that first buyer wasn’t real, he appeared from the back only at the moment the pitch called for it. The herd had been successfully rounded up.
Happy house buying y’all.

#68 KLNR on 03.11.21 at 5:05 pm

@#51 WHATEVER! on 03.11.21 at 3:41 pm
So full steam ahead to endless DEBT Town?

Terminus: failure of Canadian Dollar? Failure of USD?

BORROW, BORROW, BORROW!

Hipster and millennials had it right? Who cares!

Covid helped people realize that no one lives forever, but the memories you make, even on borrowed money you can take with you!

Meanwhile….$2.3M for this lovely 3bdrm with a 12×11 master prison cell right on the “pond” which is really a water treatment reservoir with lovely aromas all summer long can be yours today! Another bedroom 7″ wide! Probably will be sold by Sunday.

https://www.realtor.ca/real-estate/22901647/86-ellis-ave-toronto-high-park-swansea

I remember looking at this place pre-reno about 13-14yrs ago. Was priced around 560k then. Its is an amazing spot.
no bad aromas, water treatment plant is waaay west of there. wouldn’t be surprised if it goes well over asking.

#69 Loonie Doctor on 03.11.21 at 5:09 pm

#16 Rook

What I don’t understand is WHY one should be punished for saving? Of what benefit to the government is it to have yet ANOTHER person consuming government handouts, and not contributing?

—————————————————————–
Because they will vote for the government that gives them more handouts. Simple.
-LD

#70 Dr V on 03.11.21 at 5:09 pm

15 Sarah

“She has my uncle’s deceased CPP, OAS and some laddered GIC’s she uses if needed for unexpected expenses. About 43% income is from interest and 57% is from CPP, OAS for a combined $49,000 a year.”

Please elaborate. My understanding is that a single CPP benefit will never exceed the max, even with a survivor’s benefit. Somewhere under $1200/mo. Add 1
OAP of $600 gets $21600 pa. If that is 57% gets about
$38000 pa.

Also, should have bought some cdn bank stocks near
the low last year – 7% yields. Tax free until income exceeds $49 kpa.

And FYI, you sound like every other GIC thumper that leaves comments here. It’s…..just…..weird.

#71 TurnerNation on 03.11.21 at 5:11 pm

The Economic Lockdowns in Ontario will extend until June, maybe September. They must force the UBI.
Remember, there no longer is “news” only the predictive programming.
The old system, old ways and culture must be wiped out. This is the New World Order and we are under total global control. Prove otherwise.

– Fraser Health could see major COVID-19 spread through May if current trends hold, modelling shows (Canada) globalnews.ca


CP24 @CP24 Coronavirus variant spread will force Ontario into third ‘harsher’ lockdown, director of province’s COVID-19 Science Table says
https://cp24.com/news/ontario-will-need-even-harsher-third-lockdown-soon-due-to-covid-19-variants-top-epidemiologist-says-1.5343242

…………………….
— WOW From that ‘crazy leaked’ and debunked thing that went around the internet – a few times. This weblog hopped into the melee even.

“- Enhanced lock down restrictions (referred to as Third Lock Down) will be implemented. Full travel restrictions will be imposed (including inter-province and inter-city). Expected Q2 2021.
– Transitioning of individuals into the universal basic income program. Expected mid Q2 2021.”

#72 Penny Henny on 03.11.21 at 5:14 pm

Reason would dictate that swallowing big debt when rates are low and destined to rise is a really bad idea.-Garth
/////////////

I would say that the best time to assume debt is when rates are low. What better time would there be, all else being equal?

Of course not. When rates are low real estate is inflated and debt increases. – Garth

#73 Faron on 03.11.21 at 5:18 pm

#58 Diversified in Mississauga on 03.11.21 at 3:57 pm

#18 Michael
——————-

Invest however diversified you feel comfortable with – when you are able to.

And have a look-see at the correlation matrix of your holdings during times WTSHTF. That will show you the true protective diversity in your portfolio. Currently, bond prices are more positively correlated with equities than one would like, so it would be easy to conclude that they aren’t offering your port anything. 60/40 has had a rough couple of weeks because of this.

But, when the next correction comes, bond prices will almost certainly go up (negative correlation) right as correlation among all equities approaches one. That gift will buffer volatility in your total portfolio and allow you to rebalance to capitalize on the newly bargain equity prices. USD is another inversely correlated asset, but you may not like the steady decline in value of these as the bull market extends.

#74 Penny Henny on 03.11.21 at 5:21 pm

#4 crowdedelevatorfartz on 03.11.21 at 1:15 pm
A year ago people were stampeding each other for ….toilet paper.

Now?

Houses.
/////////////

What are you trying to say?
They’re both going in the shitter?

#75 joe on 03.11.21 at 5:25 pm

Speculation in GameStop stock is frowned upon but with housing for Canadian families, it’s OK?

Mr Macklem’s job should be under review. After all, one of Trudeau’s election promises was to bring the cost of housing DOWN.

#76 Dr V on 03.11.21 at 5:28 pm

15 Sarah – the numbers work much better if the percentages are switched to 43% OAP/CPP and 57% interest.

so that would be $27kpa in interest which is a sizeable principal these days. She is taxed to the max. Garth can
help.

#77 Penny Henny on 03.11.21 at 5:31 pm

#15 Sarah Taunton on 03.11.21 at 1:53 pm
My aunt is and has always been very conservative and cautious with her money. She remembers her mother talking many times during her life about the great depression and the 1930’s. My aunt first remembered this when she was 9 years old in the late 1940’s.

After my uncle passed away, just a few years ago from today, 2017, she sold the house in 2018, paid off her small mortgage, has no more debts is now renting with a good long time friend and took all her RRSP’s, non-registered and put most of in 10 year GIC’s and OSB’s.

She has my uncle’s deceased CPP, OAS and some laddered GIC’s she uses if needed for unexpected expenses.
////////////////

Sadly once you pass away your OAS goes with it.
So she is not getting uncle’s OAS but most likely a survivors benefit of CPP.

#78 Claire on 03.11.21 at 5:32 pm

#16 Rook – samesies. When we made the decision to continue renting until things unravelled and to invest in our portfolio to the max we knew people would call us crazy, we knew we’d look stupid, but we never realized we’d look this stupid and for this long. We’re finally at the point of ultimate idiocy because I’m honest to god sitting looking at a house worth $1.3M and thinking the mortgage payments on $1M don’t look all that bad. I thought a $500K mortgage was too big and now five years later I think $1M look reasonable. And I’m not even smoking crack! It’s truly time to just hold the line, stay the course. Diamond hands, as they say.

#79 Dr V on 03.11.21 at 5:36 pm

62 Yorkville re: comment the other day about getting a loan.

I thought you were trying to be funny as the original
question was wrt a “HELOC” which of course a renter
cannot get.

Apologies if I misinterpreted.

#80 crowdedelevatorfartz on 03.11.21 at 5:39 pm

@#67 Penny Henny
“What are you trying to say?
They’re both going in the shitter?”

++++

Merely an observation of the herd mentality.
I leave it up to you to determine if one is crappier than the other…

#81 Toronto no more? on 03.11.21 at 5:46 pm

As relatively high income millennial, housing prices in the GTA make me contemplate moving to the US.

Tying myself to high housing prices in Toronto compared to warmer weather, cheaper housing and likely higher wages down south make me continuously contemplate at what point should I make the decision to leave Canada. Higher taxes incoming, high housing prices aren’t an encouraging future.

(note: Originally from outside the GTA, however, matching positions and limited)

#82 AM in MN on 03.11.21 at 5:49 pm

#14 Doug in London on 03.11.21 at 1:52 pm

The rise in the value of Bitcoin has also led to a crypto-assets ‘gold rush’, with retail investors piling into an incredibly volatile asset class that most don’t understand.
—————————————————————–
I don’t get it and never will. Shouldn’t they have been piling money into stocks and ETFs that invest in things we actually use like banks, utilities, oil companies, REITs, and other useful goods and services a year ago when they were all on sale? As for investing by emotions, my emotions were at a record setting high when scooping up all those assets DIRT CHEAP a year ago.

———————————————————-

As the price hits a new record…..

You need to study a lot to really understand it, but what is happening now is that many Fintech companies are being created that ride on the BTC structure to, for instance, allow for near instantaneous transfers between foreign bank accounts at 1/100th the fees of a SWIFT transaction.

This sort of thing is made possible by the chain of custody nature of Bitcoin.

Now imagine more and more transactions globally being done this way, even if the BTC part lasts for less than 1sec., and all of the global financial firms involved need a reserve stash, like they do with USD… and that adds up to a lot more demand than the 900/day being mined right now.

#83 Tron Light on 03.11.21 at 5:50 pm

DELETED

#84 Rochdale GM on 03.11.21 at 5:51 pm

#48 Sara
#52 Sara
I’m guessing we also are not alone in this senior non-owner space. My accounts have done ok following Garth’s wise advice, BUT… one of these days I’ll describe what it’s like renting from the REIT where I live. It’s not pleasant.

#85 Sheesh on 03.11.21 at 5:53 pm

I haven’t felt this much FOMO angst since the dot.com bubble. Which burst shortly after I convinced myself that ‘it really IS different this time’ and invested in a Nasdaq mutual fund. Ouch.
But damn, it really feels like things are different this time.

#86 Doug Peters on 03.11.21 at 5:56 pm

Hey Dr.V, reading Sarah Taunton’s post, I understand it as 57% is from $49,000 which is her aunt’s total income. This is $49,000*.57=$27,930 a year from C.P.P., OAS. Well going by her post, C.P.P. is not all her aunt’s C.P.P. but survivor benefits of her husband’s C.P.P. This makes full sense and numbers work out. As for the 10 year GIC’s, I did not want to use bonds as I don’t understand them, tax implications etc. so I used to buy 5 year GIC’s for my fixed income but now last year I found a 10 year 2.70% GIC and are fully CDIC as they changed it to terms more than 5 years.

#87 Faron on 03.11.21 at 6:07 pm

#193 Nonplused on 03.10.21 at 10:53 pm
#177 Faron on 03.10.21 at 9:33 pm
#167 Nonplused on 03.10.21 at 8:47 pm
#137 Sara on 03.10.21 at 7:28 pm

Garth, I’m sorry for the epic ramble. But, it’s clean, mostly respectful and I hope it’s at least entertaining for you to read.

Obviously this isn’t about survival of the planet. Yes, life will persist on earth regardless of almost anything we or the universe does ’cause extremophiles. And even if we bork the job we currently face (by listening to you or T-rone Lyte) some humans will survive and carry on. But that’s a low bar to clear and zero reason for romping as it our lives don’t depend on the smooth functioning of the ecosystems that we evolved with and remain inextricably tied to.

Your line of thinking may feel comfortable, but is actually pretty nihilistic. You are saying that it’s cool if we eff the D ’cause the 3rd rock will continue its orbit, so YOLO some GME calls bru. It’s like saying that if I take an irreplaceable part from your car that you still have a mostly functioning car. Sure, but it’s utility drops disproportionately to the effort it took me to steal your brake lines and spark plug wires (if they were irreplaceable).

Anyhow,

These sentences simply are not compatible:

we aren’t nearly as important as we think we are

and

That is until the nukes go off. The nukes are the real worry

You get confused because one (the nukes) are instantaneously acting and literally blindingly powerful incarnations of human ingenuity while CO2 and GHG emission is relatively sedate and benign while having very strong cumulative effects. Global thermonuclear war would bring on the so-called nuclear winter and lead to a geologically instantaneous mass extinction. Human activities including GHGs are also driving a mass extinction (this is not up for debate, the evidence is vast) but because it’s slow to us, yet still geologically instantaneous. But you can’t feel the force of it and are unwilling to look at the heap of evidence. A ruined earth will ruin our ability to live as we do today which is cush as hell regardless of how that ruination comes about. That is what matters.

And, don’t neglect that ecological damage leads to geopolitical strife (Cf. the Syrias civil war). As we lose ecosystem functioning, one of the feedbacks is that we are ever more likely to get in that nuclear war. Precipitation patterns in the tropics are and will continue to change. There are very large populations of people in those areas and they are largely poverty stricken. They will migrate and that migration will piss people off.

And well you are a scientist. You therefore know that the light and radio waves the earth has emitted has at best reached a few close by solar systems at this point. The chances that those solar systems have advanced space travel capabilities whereby they could transvers 25-50 light years of space is small, the chances they would want to even smaller.

I was entertaining your alien visitor fantasy. Jesus.

However, I thought about what I said last night in conjunction with the earth’s radiative balance and can say that a keenly observant ET may have had 4000 years to get here. There’s some (albeit thin as this is an edge theory, but a cool one to think about) evidence that roughly 8000 years ago when agriculture took hold humans began to measurably modify the climate. This happened through land modifications that increased methane emissions. It’s ever so slightly detectable in ice cores, but some argue that the signal is something else because the natural methane cycle isn’t well enough understood to pin down these small changes.

An alien with a very good IR telescope could have detected this change if it existed.

#88 Faron on 03.11.21 at 6:12 pm

#75 joe on 03.11.21 at 5:25 pm

Speculation in GameStop stock is frowned upon but with housing for Canadian families, it’s OK?

Housing has real utility worth maybe 1/3rd the price. GME’s utility is several orders of magnitude below its share price.

If families don’t get shaken out of their mortgages, they at least have a place to live. When you lose money on GME you have nothing to show for it because GME has little to no intrinsic value. NOwadays you don’t even have the paper shares to wipe your azzz with.

#89 Islandgirl on 03.11.21 at 6:24 pm

It’s so crazy out there now. Last May we refinanced after being in the house 5 years to do some needed updates to the house (new roof, new siding – which will make it more fire retardant, new electrical, and then some cosmetic changes), didn’t borrow as much as the house was assessed at and have been carefully watching the costs compile. In the meantime neighbours who bought 2 years ago have already refinanced once, and are in the process of doing it again to pay for the next round of renos after paying off all thier previous debts. Houses in our neighbourhood are selling for 500 more than we initially bought so they are likely trying to squeeze out every penny but it just seems so reckless.

#90 Sara on 03.11.21 at 6:27 pm

#263 Sail Away on 03.11.21 at 3:36 pm
#262 Sara on 03.11.21 at 2:45 pm
#257 Tron Light on 03.11.21 at 1:26 pm
#247 Sara on 03.11.21 at 12:00 pm

For someone relatively new to posting comments on here that’s pretty egotistical.

———-

I’m new here? Thanks for letting me know.

———-

Well, in your current guise. You could, of course, revert to any one of your many previous pseudonyms. Or would you like me to call you by your real name, since that seems to be a thing with you? Don’t ignore your US taxes by the way.

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

Do you prefer Charles or Charlie?

BTW, the guy you are defending was just told to leave this blog. Remember when you were also banned for awhile?

#91 Penny Henny on 03.11.21 at 6:28 pm

#72 Penny Henny on 03.11.21 at 5:14 pm
Reason would dictate that swallowing big debt when rates are low and destined to rise is a really bad idea.-Garth
/////////////

I would say that the best time to assume debt is when rates are low. What better time would there be, all else being equal?

Of course not. When rates are low real estate is inflated and debt increases. – Garth
///////////

Oh I see you are referring to real estate debt specifically.

More debt at lower rates is not preferable to less debt at a higher cost. – Garth

#92 Michael in-north-york on 03.11.21 at 6:35 pm

#55 WHATEVER! on 03.11.21 at 3:48 pm
Liberals identify themselves with color RED!
How did we not pick it up? It was right there all the time!
Red means STOP. Reds are commies! We should have known!
What does RED make you think of?
OH YEAH….Canada…in the RED! DEEP RED!

===
In the U.S., Dem states are BLUE and Rep states are RED. Oops.

And once upon a time, their Republican party was to the left of their Democrats. That was long ago, before and right after the Civil War.

#93 The West on 03.11.21 at 6:40 pm

Breathing Underwater
Presented by Metric:

I’m the blade
You’re the knife
I’m the wind
You’re the kite

They were right when they said
We were breathing underwater
Out of place all the time
In a world that wasn’t mine to take

I’ll wait, is this my life?
Am I breathing underwater?
Is this my life?
Am I breathing underwater?

They were right when they said
We should never meet our heroes
When they bow at their feet
In the end it wasn’t me

Is this my life?
Am I breathing underwater?
Is this my life?
Am I breathing underwater?

Lights of days
Is there a path through the mirrored maze?
I can see the end
But it hasn’t happened yet

Is this my life?
Am I breathing underwater?
Is this my life?
Am I breathing underwater?

Am I breathing underwater?
Am I breathing underwater?

#94 JackYVR on 03.11.21 at 6:53 pm

Beware the Ides of March, – perhaps a correction, we can only hope.

#95 Faron on 03.11.21 at 6:54 pm

Garth, I know I already take far more than my share of your attention, which I appreciate, but may I ask a question of you or anyone with an idea on paying off debt?

We recently bought a house. We can afford the payment now and will be able to afford it when rates increase at renewal in ~5 years. I’m currently stuffing as much money into RRSP as possible and paying accelerated weekly. The question is if, given that rates will rise, should some of that stuffing be pointed at the mortgage?

The argument for is that paying it sooner will make renewing painless if rates jump substantially. The other argument for is that if the very worst comes to pass (by then it would be a 30% drop in the house’s value) we could land underwater at renewal and the bank may ask for a lump payment to bring the loan ratio back in line.

The argument against is that even with a big rate rise, we will be able to afford the payment and the portfolio will probably continue to outpace the interest on the mortgage. And, we are currently out of balance between net worth in house vs. not-house skewed toward the house.

Thanks to you or whomever answers this.

#96 Sail Away on 03.11.21 at 7:21 pm

#90 Sara on 03.11.21 at 6:27 pm

Do you prefer Charles or Charlie?

BTW, the guy you are defending was just told to leave this blog. Remember when you were also banned for awhile?

———

Captain is fine.

Never banned, by the way, but I did serve a penalty for expressing support for another poster (Attrition, I think) Garth was in process of punting.

Sometimes you just have to accept the risks and support your team.

#97 crowdedelevatorfartz on 03.11.21 at 7:25 pm

@#95 Faron

Sounds like your doing everything right.
Accelerated mortgage payments, RRSP investing.
You’re way ahead of 90% of the pack.
You could also use an interest free loan from your RRSP to pay down the mortgage if you were hit with a huge devaluation before renewal?

#98 S.Bby on 03.11.21 at 7:34 pm

Vancouver houses are selling for over $500,000 more than asking. “Buyers are in a frenzy”.

https://www.straight.com/news/vancouver-real-estate-east-side-home-gets-21-offers-sells-600000-over-asking-price-for-23

#99 Dr V on 03.11.21 at 7:37 pm

95 Faron

“I’m currently stuffing as much money into RRSP as possible and paying accelerated weekly. The question is if, given that rates will rise, should some of that stuffing be pointed at the mortgage? ”

A great question. last time I mortgaged (2004?) it was for that “once in a lifetime” of 4.35% for a fiver!

My life experience at that time told me “pay the damn
thing off” so I wouldn’t have to worry about it. Looked great by ’08 as the world started to fall apart and I managed to pay it off soon thereafter.

But in the end….I woulda been better off dragging that ball and chain out as long as the bank would let me and invested more.

Look at the whole picture though, as the converse is a house that loses value and a portfolio in the dumps…..
good luck.

#100 glenn wood on 03.11.21 at 7:41 pm

The real estate and stock markets can continue to behave irrationally longer than you can remain solvent, however this will end very badly even if JT and the gang meddle where they should not go. Royal bank has mostly uninsured mortgages because they say their loan to value ratio is 80% or less. My oh my. Real estate could eventually plunge more than 20%. This begets lack of liquidity and a 65 cent dollar.

#101 Stone on 03.11.21 at 7:45 pm

#66 Barb on 03.11.21 at 4:53 pm
At the grocery store today, the new cashier is an approx 75 year old gentleman. Bet he has a sad tale to tell.

———

The sad tale is that he’s actually 45 but looks 75. Just bought an overpriced slanty semi and he aged 30 years in the matter of…minutes.

You’re absolutely right. It’s the saddest tale I’ve heard.

By any chance, was he mumbling “I should have bought ETFs and gone balanced and diversified.”?

#102 Faron on 03.11.21 at 7:58 pm

#82 AM in MN on 03.11.21 at 5:49 pm

#14 Doug in London on 03.11.21 at 1:52 pm

Blockchain is redonculously energy inefficient and will never improve by design.

Quantum computing may get ahead of blockchain to make it crackable.

Most importantly, it might get snuffed by CBs.

Milk it if you can stand the vol, but don’t hodl forever.

#103 Nothing for Nothing! on 03.11.21 at 8:03 pm

Losing Faith – picture of a dog in church – Garth, we all will be judged one day and all our words and actions will be accounted for, you should know better. Shame on your reference there.

Maybe God is a dog. Be careful. – Garth

#104 Diamond Dog on 03.11.21 at 8:06 pm

Well said, Garth. It’s cliche’, but cliche’s repeat its what they do. “It won’t end well.” Sometimes I get lucky and run into a video that coins present history best as to where this market is headed and why. Jeremy Grantham answers that call:

https://www.youtube.com/watch?v=RYfmRTyl56w

Investors (in anything) would also do well to take a good long look at behavioral finance for a plethora of reasons, but mainly to recognize and address cognitive bias’s of our own. Getting rid of bias as human beings never mind investors, will only lead to better made choices down the road. A comprehensive list of cognitive bias covered in behavioral finance is found in the link below:

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

#105 Flop... on 03.11.21 at 8:09 pm

So my big idea at work today was to ask Garth, since he has so much spare time on his hands, to write 2 posts each night.

One white collar post, one blue collar post.

The white collared post for all the desk humpers on this site, would pretty much just be business as usual.

This is where my idea started to fall apart, because for the secondary blue collar post he could just pretty much write the same sentence each night, no matter what the topic du jour is.

She’s f#*%ed, mate…

M46BC

———————————————-

Mapped: The United States of Debt.

“Is there a state debt problem in the U.S.? A major part of President Biden’s $1.9T economic stimulus package is $350B in direct aid to states. The idea is that states need additional revenue to deal with the pandemic and supplement their reserves. Critics point out that states tax revenues in 2020 were roughly flat compared to the previous year. But nonetheless there is a massive state debt problem, as our latest visualization of debt by state makes clear.

California has the highest overall total debt liability of any state at $362.9B, representing 120.5% of total assets.

The most leveraged state is Illinois, where $248.7B of debt equals an astonishing 468.7% of assets.

13 states have debt loads topping 100% or more of assets, with a concentration of heavily indebted states in the Northeast.

The vast majority of states across the country have manageable total debt levels. Alaska (14.2%), South Dakota (15.1%) and Nebraska (15.1%) have the healthiest balance sheets.”

https://howmuch.net/articles/the-us-debt-map-2020

#106 George on 03.11.21 at 8:10 pm

My grandma used to say God gave men two heads but just enough blood to keep one working at any given time… Follow your brain or your pants because you cannot do both, no matter how hard you try.

#107 cuke and tomato picker on 03.11.21 at 8:16 pm

On this day of the one year anniversary of covid 19 we are very THANKFUL to A. LIVE IN CANADA B. FOR OUR PRIME MINISTER AND STAFF C. TO LIVE IN BC AND OUR PREMIER D. BONNIE HENRY. So far so good for south Vancouver Island – THANKS AGAIN WELL DONE.

#108 Nelson on 03.11.21 at 8:18 pm

Scratching my head wondering why this blog every day bemoans the ballooning prices of residential real estate in Canada, yet encourages investment in the stock market, which is also ridiculously bubblicious.

When rates are low, real estate is not the only inflated asset, and margin debt is skyrocketing as well.

Everything is speculation and everything is overvalued. The money printer keeps going brrrrr, or ka-ching, if your prefer, and all that money has to go somewhere. It is truly an everything bubble….perhaps the next bubble will be in real interest rates if people decide to start actually spending all this money on living their lives.

Every dime I’ve been putting into commodities has been paying off and will help hedge the pain when it comes….but at the end of the day I welcome it. There are lessons that need to be learned by central banks, corporations, real estate investors, speculative stock investors, and governments. Lord knows I’ve learned a few in the last 12 months.

Of course the reason this wonderful blog bemoans the state of the real estate market is that it is authored by a financial advisor, rather than a realtor, just so no-one feels compelled to point that out.

I love reading it though….forward it to friends regularly to try to scare the crap out of them, and sincerely believe in about 70% of it’s assertions.

Stoked to see your name on CBC news Garth, when the bubble finally bursts you’ll be a really popular guy with the media! Also, You and Rosenberg agree this week! That’s what finally did it for me, if this isn’t the peak, it’s coming soon (not sure when you two will agree on stocks though). Current plan is to sell my Van Isle property in the spring of 2022 (as bubbles always go on a little longer than the experts predict). Then buy a nice little place on those white sandy beaches south of Lunenburg somewhere (Keji down to the Hawk, some great beaches)….though unfortunately I’ve watched those prices just explode this year as well *sigh*.

Thanks for another great post.

This blog has never promoted stock-picking. – Garth

#109 Leebow on 03.11.21 at 8:21 pm

#95 Faron

You are overanalyzing things. Just max the total net worth which is the RRSP option in your case. Don’t be too conservative.

Its 5 years away, so just chill. The problem will solve itself if it’s ever a problem.

#110 Ed on 03.11.21 at 8:22 pm

This is going to get way crazier before things turn. Think Japan in the 80’s.

Generally a cautious investor, but enjoying some crazy returns on a small exposure to some of this frothy foolishness in the markets, knowing its a greater fool play at this point.

#111 Nelson on 03.11.21 at 8:23 pm

Maybe God is a dog. Be careful. – Garth

Very likely. From what I’ve seen, if there is a God, God more likely created Dog in his image, than man. My dogs have showed me how to live far better than most men who’ve tried!

#112 Stone on 03.11.21 at 8:26 pm

#96 Sail Away on 03.11.21 at 7:21 pm
#90 Sara on 03.11.21 at 6:27 pm

Do you prefer Charles or Charlie?

BTW, the guy you are defending was just told to leave this blog. Remember when you were also banned for awhile?

———

Captain is fine.

Never banned, by the way, but I did serve a penalty for expressing support for another poster (Attrition, I think) Garth was in process of punting.

Sometimes you just have to accept the risks and support your team.

———

What team is that? The disgusting anti-mask, anti-vax, let old people die because they’re not important…team?

You got punted because of your lack of empathy for all the poor souls who lost their lives tragically over the last year and their mourning families.

Yes. I remember that too. Looks like nothing has changed in your regard. How unfortunate we all have to be reminded what a gross person you are.

#113 Sara on 03.11.21 at 8:33 pm

#84 Rochdale GM on 03.11.21 at 5:51 pm
#48 Sara
#52 Sara
I’m guessing we also are not alone in this senior non-owner space. My accounts have done ok following Garth’s wise advice, BUT… one of these days I’ll describe what it’s like renting from the REIT where I live. It’s not pleasant.

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

I said I was non-young, not a senior. LOL. Still have a teen-ager at home. But, yeah, it’s not just the first time home buyers who have missed out on the last ten years or so of high housing growth. Anyone who got out of the market for whatever reason missed out.

Sorry to hear your renting experience has not been good. Not sure what you meant by “renting from the REIT”.

#114 Sara on 03.11.21 at 8:38 pm

@ Rochdale GM.

Now I get it…duh. Can you find another place to rent? I don’t know where you live, but here in Ottawa, my understanding is that there is more vacancy and rents have gone down a bit.

#115 Dr V on 03.11.21 at 8:44 pm

86 Doug Peters – from the link below

https://www.moneysense.ca/save/retirement/pensions/survivor-benefits-a-guide-to-cpp-oas-gis-and-more/

“The rules for combining a CPP survivor pension with regular CPP benefits are tricky. Service Canada says the survivor and retirement pensions are “combined into a single benefit” that cannot exceed $1,114.17 in 2017. As this article in the Globe & Mail explains, “if both partners were getting the maximum CPP retirement pension, there will be no survivor benefits when one dies. None … the survivor is allowed to get the equivalent of only one maximum CPP retirement benefit.” ”

max CPP is 2017 was $1114. MAX OAS now is $615. those both increase if you wait until after 65 but I do not know how much of the survivor benefit would transfer. If CPP was not max, amount could be less.

This is why I asked Sarah to elaborate. And why do you use your (apparent) real name? It creeps me out.

#116 Wrk.dover on 03.11.21 at 8:48 pm

Faron; you have to top the RRSP because you have a high income. The TSFA just because it is a gift.

But I would put every unregistered $ I have on the house and get ‘er done, never to be borrowed against again.

Leverage is bad for karma, and digestion.

We only ever bought RRSP’s (spousals) over time to get the exact amount out of a higher tax bracket, and sold them out, again staying under the next higher bracket. To the very limit.

RRIF’s will just cause grief in your taxable future.

TFSA’s provide dignity, in your future.

#117 Sue on 03.11.21 at 8:50 pm

#50 binky barnes on 03.11.21 at 3:40 pm
I lost my senses last night! I actually believed–albeit briefly–that our PM will not be able to solve this housing mess. But I have since come to my senses. Of course he can solve it. He solves problems, that is what Mr. Justin Trudeau does.

So I would advise Phil to put his faith in the PM. He has the economic well-being of Canadians at the top of his list. So you see Phil, there is absolutely nothing to worry about. Nothing!

BB

Love your humour! But was concerned yesterday.
Hes a disaster.

#118 Bert on 03.11.21 at 8:53 pm

Employers are anticipating 56% of employees return to work longer term.

https://twitter.com/lisaabramowicz1/status/1370189579882536964?s=21

#119 Garth's therapist on 03.11.21 at 8:59 pm

Garth, it’s clear to me you are suffering from a severe bout of depression over where things look headed.

It’s never too late to change course.

At our last session together, we talked about alternatives for you as the purpose of this blog seems to falter.

What about those possibilities?

You still have time to get a realtor’s license. You would be great at that!

Please reach out at any time.

Reminder: Our next session is Monday. Please pay $165 by e-transfer by Friday.

#120 Ponzius Pilatus on 03.11.21 at 9:00 pm

#97 crowdedelevatorfartz on 03.11.21 at 7:25 pm
@#95 Faron

Sounds like your doing everything right.
Accelerated mortgage payments, RRSP investing.
You’re way ahead of 90% of the pack.
You could also use an interest free loan from your RRSP to pay down the mortgage if you were hit with a huge devaluation before renewal?
————–
Accelerated mortgage payments?
When mortgage rates are so low.
Please leave the financial advise to the experts.
Like Salo, your getting too big for your breeches.

#121 Going In on 03.11.21 at 9:03 pm

#56 Greene deal on 03.11.21 at 3:51 pm
#5 VGRO and chill

Garth wrote about Canada’s housing bubble back in 2008. He pointed out Canada had rampant speculation around that time and so far the speculators and flippers have not paid the piper. But they will. Boom – bust. Nothing new here. The herd will learn their lesson the hard way.

—–

I balked at buying a house six years ago because I thought I might lose my job and I did.

I should have bought anyway and just figured it out. That house has doubled in value. I am renting a shittier apartment for more money.

I am getting in at any cost. I refuse to be a loser for the rest of my life. I am getting my shit together and I am buying a house and if I’m house poor for the next decade, so be it. I’m not screwing up a second time. This is the new normal. It’s not a bubble. It’s just this now.

#122 GAV on 03.11.21 at 9:04 pm

#87 Faron on 03.11.21 at 6:07 pm

Thank God my daughter turned down UVic and got her science degree somewhere else.

#123 Ponzius Pilatus on 03.11.21 at 9:07 pm

#106 George on 03.11.21 at 8:10 pm
My grandma used to say God gave men two heads but just enough blood to keep one working at any given time… Follow your brain or your pants because you cannot do both, no matter how hard you try.
———–
Actually, God gave us one head (brain) with 2 opposite sites.
After all, he created us after his own image.
He did not want us to look like some freak from outer space.

#124 Faron on 03.11.21 at 9:11 pm

#97 crowdedelevatorfartz on 03.11.21 at 7:25 pm
#99 Dr V on 03.11.21 at 7:37 pm
#109 Leebow on 03.11.21 at 8:21 pm

Thanks for the feedback! My fiance is more debt averse, but really we both are more averse than average. It sounds like the consensus is to plug the RRSP (and TFSA) and cross the refinance bridge when it arrives.

#125 Faron on 03.11.21 at 9:15 pm

#113 Sara on 03.11.21 at 8:33 pm

#84 Rochdale GM on 03.11.21 at 5:51 pm
#48 Sara
#52 Sara

Sorry to hear your renting experience has not been good. Not sure what you meant by “renting from the REIT”.

CAR.UN, for one, is a REIT that owns apartments. They oversee the management and essentially dictate how it’s done. REIT’s are for-profit, so they optimize for their shareholders at the expense of resident’s comfort insofar as they can get away with it. With vacancies near zero in many towns, they can get away with a lot.

#126 crowdedelevatorfartz on 03.11.21 at 9:16 pm

@#107 Shroom and bud picker
“On this day of the one year anniversary of covid 19 we are very THANKFUL to A. LIVE IN CANADA B. FOR OUR PRIME MINISTER AND STAFF ”

++++

Don’t get high on your own supply…….

#127 crowdedelevatorfartz on 03.11.21 at 9:19 pm

@#112 Stones and glass houses
” How unfortunate we all have to be reminded what a gross person you are.”

++++

Careful, your empathy is showing.

#128 alexinvestor on 03.11.21 at 9:20 pm

That’s the problem with the everything bubble. You don’t want to hold cash, but what’s the least bubbly asset out there … Canadian real estate, or junk bonds at 4% ? Of course, it would be nice to hold a bit of everything but not many can do this.

#129 Get what you pay for on 03.11.21 at 9:23 pm

However if I now dare to mention your articles, I get a “You and your stupid blog !!! We could have bought that house (a house that we visited and liked) 4 years ago. It just sold again for more then twice the value. It is now forever out of reach thanks to you !”

________________________________________

You should ask Garth for your money back.

#130 Dumb Wealth on 03.11.21 at 9:25 pm

What we’re witnessing is the complete destruction of Canada’s middle class.

#131 fishman on 03.11.21 at 9:41 pm

If its any help Garth, your in good company on this side of the continent. Our regular coffee clutch is down & with it the hot gossip from the regular R/E players. While walking the dogs early the other morning, crossed paths with Bob Rennie. Couldn’t miss my chance to query the King as to whats happening. “Nobody talks to me. Nobody phones me, nobody likes me anymore”. Aw come on Bobbi,I says, I still love you. Whats the matter? “I was right. I told them that there wasn’t enough supply & prices were going to go up by at least 25%. Now they all hate me.” So thats just the way it is. If you know your subject. If you got the history & track record to make a good call. From somewhere a dim ulterior motive urges you to lighten the load on the serfs. And you step out to tell the Powers to Be maybe their on the wrong path & things are likely to get worse. Just hope your honest informed opinion is wrong. Because if your right ,your cancelled.

#132 Dr V on 03.11.21 at 9:47 pm

124 Faron

What’s the saying? “You can’t live in a stock?”

I guess we can if it’s an REIT!

#133 crowdedelevatorfartz on 03.11.21 at 9:49 pm

@#120 Pshaw Pshaw
“Accelerated mortgage payments?
When mortgage rates are so low.”
++++

If they can shave several YEARS off their mortgage and they can afford to do it while stuffing money in an RRSP.
Why not.

#134 Ponzius Pilatus on 03.11.21 at 9:50 pm

#129 Dumb Wealth on 03.11.21 at 9:25 pm
What we’re witnessing is the complete destruction of Canada’s middle class.
—————-
Not what I see in my middle class neighborhood.
More F-150s than ever in the driveways.
Seems like people still have lots of extra cash to waste.

#135 WHATEVER! on 03.11.21 at 9:51 pm

#68 KLNR on 03.11.21 at 5:05 pm

Meanwhile….$2.3M for this lovely 3bdrm with a 12×11 master prison cell right on the “pond” which is really a water treatment reservoir with lovely aromas all summer long can be yours today! Another bedroom 7″ wide! Probably will be sold by Sunday.

https://www.realtor.ca/real-estate/22901647/86-ellis-ave-toronto-high-park-swansea

I remember looking at this place pre-reno about 13-14yrs ago. Was priced around 560k then. Its is an amazing spot.
no bad aromas, water treatment plant is waaay west of there. wouldn’t be surprised if it goes well over asking.

You’re mixing things up KLNR. The Humber Water Treatment plant is not WAAAY, it’s JUST 800m west of this house, and since 90% of wind patterns in Toronto are from the west, so you definitely get some of that nice Humber Water Treatment plant smell on more than a few days – especially summer time.

But the very pond upon which this house sits is part of a water treatment overflow system, including the Ellis Avenue Sewage Pumping station which was installed 2017 is memory serves me right, and TRUST ME, I bike up Ellis Ave all summer long as part of my loop – IT STINKS quite regularly! Even when we were skating on that pond this winter, because it froze first and due to size is safer to go onto early – you could smell it in the air.

#136 Doug t on 03.11.21 at 9:52 pm

#107 puke and nose picker

You must be on Pandora smoking crack lady – you constantly post the most incredibly ludicrous comments about life, politics and the state of this country – seriously, you must be on some great meds

#137 DON on 03.11.21 at 9:52 pm

So

According to Bloomberg, US mortgage rates rose for the 4th time in the last while.

Different thread, an uptick in buying Chinese debt rather than US Treasuries.

Inflation staring us in the face on a daily basis and the main herd marches onward thinking they are safe in numbers, while the wolves lie within.

I love banking my wife’s paycheque. We could upscale and live in a bigger place and lose that mola. I like the mola better – less stressful.

I noticed that Michael Burry went dark on twitter, ‘saying you know how I feel about the state of things and I won’t say another word…final warning’.

One of the best parts of the Big Short, was when he told his chief investors that ‘I looked at the data’.

So perhaps Michael will be wrong this time. Then again, most people are two lazy to look at the data. If you are planning on buying a $Million dollar house, and chaining yourself to huge debt at the lowest interest rate(s). That takes some kinda special and when most folks can’t make it through a year of mask wearing or social distancing restrictions. You become a banker’s bitch for a lot longer than a year. How long can you tread water when things go sideways. Life is full of experience.

And… for prices to increase further who exactly is left to buy when you have mid 20’s with kids flooding Kelowna already? Talent drain is a coming once the US opens especially at their house prices.

Look at the data, it does not lie. Surely with the combined brain power and egos on this blog we can map the current state and chart the possible paths forward by looking at the data. Garth’s been doing it for years and the bubble increases in size. It can also collapse under it own excessive weight.

If the US keeps printing money China debt becomes more attractive, and the jobs are not there to support what is happening in Canada, the Bank of Canada is their seemingly circular logic said as much. Look to the details and study the words that are chosen to deliver a message…communications 101. They are telling you we need to inflate the bubble to say our economy recovery. This is the point in a conversation with your best friends when one says…Are you stupid or just emotional? I hope you pick emotional especially in light of current affairs, you either have a roaring economy and higher interest rates or a sputtering engine running on low grade fuel.

My apologies for leaving all the electric car owners out.

Me/I/Human

#138 Ponzius Pilatus on 03.11.21 at 9:57 pm

#107 cuke and tomato picker on 03.11.21 at 8:16 pm
On this day of the one year anniversary of covid 19 we are very THANKFUL to A. LIVE IN CANADA B. FOR OUR PRIME MINISTER AND STAFF C. TO LIVE IN BC AND OUR PREMIER D. BONNIE HENRY. So far so good for south Vancouver Island – THANKS AGAIN WELL DONE.
—————-
Amen to this from the Lower Mainland.
There are incredible people who just come forward and lead in times of crisis.
And then there’s people who just drag everybody and everything down.

#139 Doug t on 03.11.21 at 10:02 pm

#137 fonzi phalus

WOW we have some ringer dingers here tonight folks – no wonder this country is on the skids

#140 Looking Up on 03.11.21 at 10:08 pm

137 Ponzius Pilatus on 03.11.21 at 9:57 pm
#107 cuke and tomato picker on 03.11.21 at 8:16 pm
On this day of the one year anniversary of covid 19 we are very THANKFUL to A. LIVE IN CANADA B. FOR OUR PRIME MINISTER AND STAFF C. TO LIVE IN BC AND OUR PREMIER D. BONNIE HENRY. So far so good for south Vancouver Island – THANKS AGAIN WELL DONE.
—————-
Amen to this from the Lower Mainland.
There are incredible people who just come forward and lead in times of crisis.
And then there’s people who just drag everybody and everything down.

————–

Say what you want about our prime minister but he kept us safe.

Thank you Justin!!

#141 BCWally on 03.11.21 at 10:11 pm

Hi, anybody out there reading this and about to throw in the towel and buy real estate, please take a minute and read this link.
https://theirrelevantinvestor.com/2018/05/16/druckenmillers-big-mistake/
I admire Stan Druckenmiller not just for his investing acumen, but his humility and down to earth personality.
If you watch him in a YouTube video you will like him almost immediately.
The point of this is, even one of the greatest investing minds out there fell for FOMO, in this case the tech bubble of 1999.
Every time I get that urge because I feel everyone else is getting ahead and I’m eating dust I remember Stan talking about his experience.
And I get through it to the other side.

#142 Ponzius Pilatus on 03.11.21 at 10:12 pm

#131 Doug t on 03.11.21 at 9:52 pm
#107 puke and nose picker

You must be on Pandora smoking crack lady – you constantly post the most incredibly ludicrous comments about life, politics and the state of this country – seriously, you must be on some great meds
———————
What’s with the insults?
What’s wrong with somebody bringing a positive attitude to this [email protected]/hate everybody comment section?
Goes for you too, CEF.

#143 canuck on 03.11.21 at 10:13 pm

#66 Barb on 03.11.21 at 4:53 pm

At the grocery store today, the new cashier is an approx 75 year old gentleman. Bet he has a sad tale to tell.
______________________________________________

Or maybe he’s bored sitting at home and needs a reason to get up in the morning.

#144 crowdedelevatorfartz on 03.11.21 at 10:13 pm

@#133 Potential Preapproved
“Not what I see in my middle class neighborhood.
More F-150s than ever in the driveways.
Seems like people still have lots of extra cash to waste.”

++++

You cant be that naive.
My experience over the past 30 years…
50% ( or more) of all new vehicles on the road are leased on 5,6,7 years of payment plans.

@#137 Pool peering Potentate
“And then there’s people who just drag everybody and everything down.”

++++
Ironic since you are the King of Put Downs…

#145 Freedom First on 03.11.21 at 10:21 pm

#56 Greene deal

Well put!!!

Freedom First

#146 Doug in London on 03.11.21 at 10:24 pm

@AM in MN, post #82:
On a regular basis I use the services of banks, utilities, oil companies, and shop at stores owned by REITs so that’s why I scooped them up last year when on sale. I’ve never used Bitcoin and have no intentions of using it anytime soon.

#147 Ponzius Pilatus on 03.11.21 at 10:26 pm

#136 Don
Chinese debt becoming more appealing than US Treasuries.
It’s in line with what I’m hearing from China.
They are fully open and ready to serve the World again.
The US lost valuable 4 years under Trump.
Biden looks good so far. Certainly is confounding his critics.
People say: Never bet against Uncle Samuel.
I, for one, am hedging my bets.

#148 Two-thirds on 03.11.21 at 10:27 pm

Meanwhile, Bank of Canada is quietly working to redefine how inflation is measured and whether its mandate must be inflation-based:

“Let’s Talk Inflation

Every five years, the Bank of Canada and the federal government agree on the Bank’s approach to monetary policy. Each time the agreement is renewed, we look at how we might improve our approach. The current review has three priorities:

– Compare our current approach to potential alternatives
– Ensure we have the right tools to do the job
– Assess how our approach works with fiscal and financial stability policies

So, as we review our current approach against other possible options, we’re using a survey to help us capture your thoughts.

We held an online survey in 2020 where over 8,500 Canadians from across the country participated and shared their views with us about what matters to them.”

https://www.bankofcanada.ca/toward-2021-renewing-the-monetary-policy-framework/toward-2021-outreach/lets-talk-inflation/

Straight from the horse’s mouth. No need to increase rates when you can change how inflation is measured, or even better, whether inflation targeting should even be part of the BOC’s mandate.

“We’ll be collecting your feedback into a report that summarizes what we heard during all the public engagement activities we have undertaken for this renewal. This includes survey results; focus group testing; and discussions with industry, labour and civil society groups.

This report will also be provided to our senior decision-makers. They will consider your input alongside the research our economists have been doing to put together a recommendation for the Minister of Finance about the Bank’s monetary policy approach for the next five years – from 2021 to 2026.”

Stay tuned…

#149 Don Guillermo on 03.11.21 at 10:45 pm

#137 Ponzius Pilatus on 03.11.21 at 9:57 pm
#107 cuke and tomato picker on 03.11.21 at 8:16 pm
On this day of the one year anniversary of covid 19 we are very THANKFUL to A. LIVE IN CANADA B. FOR OUR PRIME MINISTER AND STAFF C. TO LIVE IN BC AND OUR PREMIER D. BONNIE HENRY. So far so good for south Vancouver Island – THANKS AGAIN WELL DONE.
—————-
Amen to this from the Lower Mainland.
There are incredible people who just come forward and lead in times of crisis.
And then there’s people who just drag everybody and everything down.
*************************************
Hahaha, this is great stuff. Blinky should jump in here and help them through their 3rd stand-up set.

#150 Caron on 03.11.21 at 10:46 pm

This was certainly one of your most brilliant posts Garth.
I couldn’t have said it better.
I read an article in the post yesterday that David Rosenberg, who was on the right side of history when he expressed concerns prior to the 2007-2008 housing bubble bust in the US. He’s concerned we may be experiencing the biggest housing bubble in history here in Canada. The article also pointed out that housing prices are currently 40% higher (adjusted for the exchange rate) than they were back in 2007-2008 when the US housing bubble went bust.
God help anyone caught with their pants down when this housing market adjusts downward.
And the fact that the BoC isn’t intervening comes as no surprised. Disappointing but not surprising.
God help this country.

#151 Sail Away on 03.11.21 at 11:01 pm

#112 Stone on 03.11.21 at 8:26 pm
#96 Sail Away on 03.11.21

…I did serve a penalty for expressing support for another poster (Attrition, I think) Garth was in process of punting.

————

You got punted because of your lack of empathy for all the poor souls who lost their lives tragically over the last year and their mourning families.

————

Sigh… no, as stated.

Sometimes children lie to cause someone else trouble and adults must explain to them that while lying brings momentary satisfaction, the long term effect is that they are damaging their own reputation.

So Stone, my son, this is twice in a week. As the Good Book counsels:

‘Love thy neighbour as thy brother and bear not false witness lest thine plums shrivel.’

#152 cramar on 03.11.21 at 11:14 pm

16 Rook on 03.11.21 at 1:57 pm

Am I the only one who’s feeling like anybody who: lives below their means, stays out of debt, saves money for a rainy day, lives lean, is being actively punished for doing so?

We have somehow stopped being a nation of savers, and become a nation of, “As long as you have the cash flow to make the payments, go wild.”

Should the S really HTF, I can only wonder what class of ‘wealthy’ the people who have savings will get thrown into, and what will get confiscated to save those in trouble.

What I don’t understand is WHY one should be punished for saving? Of what benefit to the government is it to have yet ANOTHER person consuming government handouts, and not contributing?

——

Why do you feel like you are being punished? You are doing what is right, are doing just fine, and should be able to sleep soundly at night. What happens to the profligate majority who have no margin for error, and the housing market stops increasing and/or interest rates start rising? They are in serious do-do while you are sleeping soundly. Even if things tank, are you still not better off than those with debt?

#153 Sail Away on 03.11.21 at 11:18 pm

#120 Ponzius Pilatus on 03.11.21 at 9:00 pm

Like Salo, your getting too big for your breeches.

————-

In high school, I had a washed dishes at a restaurant owned by a German couple, and the hausfrau would yell at us dishwashers:

‘Don’t be too big for your breeches. Dishwashers are a dozen for a dime!’

Sweet old battleaxe.

#154 Robert Ash on 03.11.21 at 11:19 pm

Beware the Ides of March… Irrational Exuberance, and Financial Repression, are cliff walking, as the more conservative parts of the Globe start to open up… More people start to rationalize that the Credit risk reward is just well foolish, and then all the CB’s can do… is Ease, and Policy… It is happening now.. 10 year up, 0.55 Basis points, in 3 months, and now the Fed is considering intervening in the longer duration Treasuries. That may be necessary to implement Yield Control, another form of Financial Repression, and somewhat a last resort…

#155 Regjeg on 03.11.21 at 11:21 pm

Article in the Atlantic explores the widening disparity between renters and homeowners and the worsening housing situation – more expensive, more inequitable, more precarious – in the US.

https://apple.news/Af8ofaGYoRQK1PGJRdju_WQ

#156 Regjeg on 03.11.21 at 11:57 pm

BINGO!!

https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-in-a-hot-housing-market-we-need-to-check-our-smugness-about-owning/

#157 Damifino on 03.12.21 at 12:02 am

#107 cuke and tomato picker

I’m good with A, C, & D. Especially D.

B… not so much.

#158 Sara on 03.12.21 at 12:41 am

Excellent opinion piece by Rob Carrick.

https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-in-a-hot-housing-market-we-need-to-check-our-smugness-about-owning/

#159 Robert Ash on 03.12.21 at 1:02 am

Doing my Income Taxes today and I was wondering how my paltry income ranked in terms of other Canadians. I clicked on this Site….. A Non Profit… Have a look, if these are credible stats, Canada, has a lot more to worry about than I thought…. Was clueless, and the Edmonton, stats, were a Gobsmack to me… I lived there for many years… have a quick look at the Facts put forward…
https://cwp-csp.ca/poverty/just-the-facts/
I think we need to do something, to change this, and structurally. I am an Advocate, that Canadians, need to participate in a complete Review of What Government services we want, and can afford, and before Public Unions, etc… and overpriced studies, we need to prioritize some help here… Come on have a look.

#160 No left turn on 03.12.21 at 5:13 am

Welcome to the Age of Absurdity. Each moment defined by an ever increasing level of absurdity. Canada at the fore front of this new Era.

May dog have mercy on us all. What terrible choices we have made (well, the rest of you, not me).

#161 Sail Away on 03.12.21 at 6:55 am

#126 crowdedelevatorfartz on 03.11.21 at 9:19 pm
@#112 Stones and glass houses

” How unfortunate we all have to be reminded what a gross person you are.”

————

Careful, your empathy is showing.

————

Haha

#162 Sail Away on 03.12.21 at 7:25 am

#158 Robert Ash on 03.12.21 at 1:02 am

Re: Poverty

I think we need to do something, to change this, and structurally. I am an Advocate, that Canadians, need to participate in a complete Review of What Government services we want, and can afford, and before Public Unions, etc… and overpriced studies, we need to prioritize some help here…

————

Advocate all you want. More fruitful is to replace the collective ‘we’ with ‘me’ and ‘I’.

If you truly want to help the Edmonton poor, donate to the Edmonton Rotary club. Or, better, join the club and become an integral part of this committee:

https://portal.clubrunner.ca/399/stories/andrea-burkhardt-end-poverty-edmonton

Our club runs a used booksale that raises (shh) $250k per year. Best fundraiser ever. There’s your path forward.

#163 Do we have all the facts on 03.12.21 at 7:30 am

The theory behind ‘Quantitative Easing’ (QE) by a Central Bank is to stimulate economic growth to the point where additional revenues generated will cover the obligations of government to their citizens. As the economy of a country expands the representative government and their Central Bank apply monetary and fiscal policies to maintain growth based inflation within established limits.

Beginning with the 9/11 crisis in 2001 the Federal Reserve bank in the USA decided to stimulate economic growth through the purchase of assets. These purchases increased prices within several asset classes and the increase in price stimulated additional demand.

Increased demand continued to inflate asset based bubbles to the point where continuation of QE purchases by the Federal Reserve became essential to keep the asset based bubbles from collapsing.

Between 2001 and 2021 the economic growth necessary to support government obligations failed to materialize and the combination of QE and increased debt became an inveterate component of government operations.

As asset based bubbles grew and became key components of an economy these bubbles became ‘too big to fail’. In order to protect the trillions of stimulus dollars invested in the past the US government and the Federal Reserve continued to inflate asset based bubbles through QE.

In 2021 the use of QE to stimulate economic growth has been replaced by a need to protect asset based bubbles from collapsing. Unfortunately the volume of debt associated with QE since 2001 has made it all but impossible for the US economy to generate the revenues necessary support government operations.

At some point in the future the bough will break and the QE cradle of asset based bubbles will fall.

#164 Ponzi's Pal on 03.12.21 at 7:32 am

#141 Ponzius Pilatus on 03.11.21 at 10:12 pm

What’s with the insults?
What’s wrong with somebody bringing a positive attitude to this [email protected]/hate everybody comment section?
Goes for you too, CEF.

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

YOU are gonna preach about negativity?! Someone whose main contribution is taking shots at others? Wow. Is utter lack of irony a Teutonic thing? Your comments are nearly ALWAYS far less Amadeus and Arnold, far more shouty guy with a funny moustache.

And as far as “Chinese debt becoming more appealing than US Treasuries. It’s in line with what I’m hearing from China.”

Appealing to whom? Debt issued by the least transparent political entity in the world, the CCP is more desirable than US T-Bills? Sure, ok.

Oh, and since you mentioned something about leaving things to the experts…having a Chinese spouse doesn’t confer any special expertise on China.

#165 TurnerNation on 03.12.21 at 7:36 am

More evidence of Economic Lockdowns till JUNE in the (formerly) economic engine of Ontariowe.

This came out a month ago. (And in 2020 the province set its fictional ‘state of emergency’ well into 2021. It was planned out)

“Toronto extends all covid bylaws until June 2021.”

——–
Once again this is the New System being rolled out, slowly, to that we accept it via Incrementalism.
“CV rules” = the tyranny to keep us off balance and unawares in the mean time.
Flip what our leaders tell us 180 degrees to make sense

“Sustainability” Means your small business must close, you will get UBI.
“Income Equality” means yes, on the UBI you will be equal!
“Minister of Middle Class Prosperity”. Bzzzt. Middle class to be wiped out.

………

Yep the old system, the old beliefs and culture must be turn down. Submit.
Did ya noticed that the most observant and strong-culture areas like Italy and Quebec are being punished the hardest? Quebec’s prison-curfews over the people are being extended into May.

–Italy to impose nationwide coronavirus lockdown over Easter weekend – draft decree (reuters.com)

#166 crowdedelevatorfartz on 03.12.21 at 8:32 am

@#146 Peking’s Publicist

China good.
U.S. bad.

Gotcha.

I’m just glad I wasnt working in China when Canadian authorities grabbed Meng on a legitimate warrant.

https://apnews.com/article/technology-beijing-newspapers-coronavirus-pandemic-crime-07aa688fc22738cbc6575a83d24aa899

Any Canuck was a target.

It should be interesting to see what someone will “confess” to after 2 years in solitary.

#167 UCC on 03.12.21 at 8:45 am

#151 cramar on 03.11.21 at 11:14 pm
16 Rook on 03.11.21 at 1:57 pm

Am I the only one who’s feeling like anybody who: lives below their means, stays out of debt, saves money for a rainy day, lives lean, is being actively punished for doing so?

We have somehow stopped being a nation of savers, and become a nation of, “As long as you have the cash flow to make the payments, go wild.”

Should the S really HTF, I can only wonder what class of ‘wealthy’ the people who have savings will get thrown into, and what will get confiscated to save those in trouble.

What I don’t understand is WHY one should be punished for saving? Of what benefit to the government is it to have yet ANOTHER person consuming government handouts, and not contributing?

——

Why do you feel like you are being punished? You are doing what is right, are doing just fine, and should be able to sleep soundly at night. What happens to the profligate majority who have no margin for error, and the housing market stops increasing and/or interest rates start rising? They are in serious do-do while you are sleeping soundly. Even if things tank, are you still not better off than those with debt?

Future Taxes on current sacrifices?

#168 Tron Light on 03.12.21 at 8:56 am

DELETED

#169 Dan in Nanaimo on 03.12.21 at 8:57 am

Really dig how your blogs ends with …dangerous debt and a seriously unbalanced life

Unbalanced life being the pinnacle

The Genie’s out of the bottle and it ain’t going back in.

Never has been a better time for the snake-oil sellers to rake it all in

#170 Prince Polo on 03.12.21 at 9:03 am

Blowing the doors off of its hinges! How many are realtors and mortgage brokers?

https://www.cbc.ca/news/business/canada-job-market-1.5947032

“Canada added 259,000 jobs in February, recovering most of the jobs it lost in the previous two months, Statistics Canada said on Friday. The results handily exceeded analysts’ expectations of 75,000 added jobs and an unemployment rate of 9.2 per cent.”

#171 Bond 007 on 03.12.21 at 9:11 am

So, I am a little fuzzy on the bond buying by the CBs. It sounds like they are:

1. Buying Government Debt – S-loads of it to finance generous payouts to just about everyone by the Federal Governments. Really just deferred taxes.

2. Private Sector issued bonds – loads of it as well to keep the bond prices artificially low. Risky investments to prop-up shakey companies with cheap loans. When many of them fail – they will just become deferred taxes as well? The transfer of private corporate debt to public debt.

Is this somewhere near accurate?

#172 Dharma Bum on 03.12.21 at 9:13 am

I’ve been vaxed for over a month.
Wife got her vaccine yesterday.
Does this mean sex is back?
I doubt it.
Excuses.
Sigh.

#173 crowdedelevatorfartz on 03.12.21 at 9:41 am

@#171 Dharma Karma
“Does this mean sex is back?”

++++

Sorry this is a Finance blog.
Where only markets go up.

You want Dr. Ruth

#174 IHCTD9 on 03.12.21 at 9:47 am

The Canadian RE gun is locked and loaded. Lead will fly this spring – my local MLS is jam packed with commercial property, vacant lots, fancy houses, and farms – 90%+ of which I’d wager do not need to be sold at all – but they will go if the gut-punch list price is offered. Lots of agents from Toronto and other larger centers listing these places. That tells you all you need to know.

You kids reading this might want to pay attention. It won’t be too much longer before something has to blow. If RE is still on an upward trajectory in 24 months, then you really should start making plans to exit Canada if you want to own your own home. The relationship between the RE market and Canada’s overall financial health is just getting too strong.

I mean, what’s left to keep an educated young Mil/Gen Z in this country anyway? We offer stupid house prices, ever increasing taxes, debt piled to the moon right across the board, and an 11 figure annual debt service bill. Sounds like a winner.

#175 Guelph Guru on 03.12.21 at 9:52 am

I tried to lookup all the biases and behavioural finance on the net and now I realize how ignorance can be bliss.
My simple brain only understands:
Prosperity = Earnings – Expenses
Wish we can return to that simple time where we sell goods that we make and ensure that the things we need to buy are less than our earnings.

#176 Calgary rip off on 03.12.21 at 10:26 am

Thanks for your report.

“All around us souls are making decisions based on emotion and groupthink.”

Unfortunately the “science” does not really know what they are doing, as shown with the entire Covid 19 response. There are many unanswered questions regarding vaccines, cov 19 itself and long term health responses of innate immunity vs. modified immunity via an injection.

People seem to think that the current situation will resolve. At issue is current research. At Wuhan currently research is ongoing about Ebinur Lake virus. Many local residents want the Wuhan virology institute to leave the city. Other residents are asking that a vaccine is made for this new virus. Apparently residents of the Kazakhstan/China border already possess antibodies. What is up for question is whether the institute will screw up yet again in releasing the Ebinur virus on the world in the future due to an oversight as the virus is being studied presently there.
https://www.frontiersin.org/articles/10.3389/fmicb.2019.03111/full

People want solidity in thoughts, plans and decisions at all levels. There isnt any. What has returned is instability in a “civilized” world, much like thousands of years ago when real problems were locating food, water and quarters to sleep. The problems are the same, just cloaked in politics and “civilization”.

#177 Craig Danesh on 03.12.21 at 10:43 am

Bonds are getting wacked again today. The 5 year is now above 1.01% while the 10, 20 years are 1.55%, 1.77%, 30 year is over 2% at 2.01%.

#178 Ponzius Pilatus on 03.12.21 at 10:46 am

#161 Sail on, Sail on, Sailo
Where in the world is Sailo?
Apparently, he’s in Edmonton now, feeding the poor and hungry.
And he donated to the Rotary Club, the whale mural that he bought in Hawaii, and then brought on his sailboat past Canadian Custom back to Canada.
What an outstanding member of the community?

#179 Ponzius Pilatus on 03.12.21 at 10:52 am

#172 crowdedelevatorfartz on 03.12.21 at 9:41 am
@#171 Dharma Karma
“Does this mean sex is back?”

++++

Sorry this is a Finance blog.
Where only markets go up.

You want Dr. Ruth
——————
You are a single guy.
What do you know about marital bliss?

#180 Tron Light on 03.12.21 at 10:58 am

Fine. I’ll just keep blasting you with blank comments.

A quality response from someone who abused his privileges as a guest. Just so all can see your nature. – Garth

#181 CL on 03.12.21 at 11:02 am

“#16 Rook on 03.11.21 at 1:57 pm
Am I the only one who’s feeling like anybody who: lives below their means, stays out of debt, saves money for a rainy day, lives lean, is being actively punished for doing so?”

Nope.

#182 Russ on 03.12.21 at 11:04 am

If yew must buy a house, at least get an interesting one.

https://www.redfin.com/OK/Pryor/1627-Lindley-Ln-74361/home/82755823

Cheers, R

#183 DON on 03.12.21 at 11:04 am

163 Ponzi’s Pal on 03.12.21 at 7:32 am
#141 Ponzius Pilatus on 03.11.21 at 10:12 pm

What’s with the insults?
What’s wrong with somebody bringing a positive attitude to this [email protected]/hate everybody comment section?
Goes for you too, CEF.

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

YOU are gonna preach about negativity?! Someone whose main contribution is taking shots at others? Wow. Is utter lack of irony a Teutonic thing? Your comments are nearly ALWAYS far less Amadeus and Arnold, far more shouty guy with a funny moustache.

And as far as “Chinese debt becoming more appealing than US Treasuries. It’s in line with what I’m hearing from China.”

Appealing to whom? Debt issued by the least transparent political entity in the world, the CCP is more desirable than US T-Bills? Sure, ok.

Oh, and since you mentioned something about leaving things to the experts…having a Chinese spouse

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

The Chinese debt being more attractive came from a bloomberg article as it appears to be happening.

I did not see Ponzi’s name on the article as the author.

#184 Doug in London on 03.12.21 at 11:27 am

@cramar, post #151:
Agreed, and I think we’re in a small minority who think this way. I’m debt free and also have no trouble sleeping at night. I took on some margin debt to buy some stocks and ETFs when they were on sale a year ago, but sold some of them off, for a good profit to pay that debt down. I’m prepared for higher interest rates. It’s not a matter of if there will be higher interest rates, but rather when.

#185 DON on 03.12.21 at 11:38 am

#172 crowdedelevatorfartz on 03.12.21 at 9:41 am
@#171 Dharma Karma
“Does this mean sex is back?”

++++

Sorry this is a Finance blog.
Where only markets go up.

You want Dr. Ruth

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

Badda Bing Budda boom

nice one

#186 Sail Away on 03.12.21 at 12:23 pm

#177 Ponzius Pilatus on 03.12.21 at 10:46 am
#161 Sail on, Sail on, Sailo

Where in the world is Sailo?
Apparently, he’s in Edmonton now, feeding the poor and hungry.
And he donated to the Rotary Club, the whale mural that he bought in Hawaii, and then brought on his sailboat past Canadian Custom back to Canada.
What an outstanding member of the community?

————

Haha. Guilty. And donated schmomated, I was pres. Can you mention my wealth next time?

#187 Looking up on 03.12.21 at 12:26 pm

#177 Ponzius Pilatus on 03.12.21 at 10:46 am
#161 Sail on, Sail on, Sailo
Where in the world is Sailo?
Apparently, he’s in Edmonton now, feeding the poor and hungry.
And he donated to the Rotary Club, the whale mural that he bought in Hawaii, and then brought on his sailboat past Canadian Custom back to Canada.
What an outstanding member of the community?

——————

I heard that the Rotary Club gave back his Hawaiian whale painting. Only after they almost perished from laughter when they opened the package saw what it was.

Perhaps he should change his handle from Sail Away to Whale Away….

#188 Sheesh on 03.12.21 at 12:35 pm

#175 Calgary rip off on 03.12.21 at 10:26 am
Thanks for your report.

“All around us souls are making decisions based on emotion and groupthink.”

Unfortunately the “science” does not really know what they are doing, as shown with the entire Covid 19 response. There are many unanswered questions regarding vaccines, cov 19 itself and long term health responses of innate immunity vs. modified immunity via an injection.
………
More science denying. Science does know what it’s doing, you just don’t understand how it works.
Educate yourself about that.

#189 crowdedelevatorfartz on 03.12.21 at 12:59 pm

@#178 Priceless Prenuptual
“You are a single guy.
What do you know about marital bliss?”

++++

Ask your wife.

#190 Stone on 03.12.21 at 1:01 pm

#181 Russ on 03.12.21 at 11:04 am
If yew must buy a house, at least get an interesting one.

https://www.redfin.com/OK/Pryor/1627-Lindley-Ln-74361/home/82755823

Cheers, R

———

Better than $700k or so for the garage in Toronto posted here a few days back.

#191 AmbiVasu on 03.12.21 at 4:33 pm

The beaver economy churned out an incredible 259,200 jobs last month, about three times what the experts had predicted.

To this jobs report in Globe and Mail, my wife commented as follows:

“part-time positions (171,000)”

I was a part time employee once; when I started, if I managed to get 4 to 8 hours work in a week, it was a miracle. I was there on the rolls with no hours, sometimes for weeks on.
4 to 8 hours did not put bread and butter on the table.
“But”, I HAD A JOB.
ANOTHER PLUS NUMBER ON THE STATSCANADA’s JOBS REPORT which did not put bread and butter on the table.
I wonder how many of these jobs are like mine?????

“retail and hospitality industries combined for an increase of roughly 187,000 jobs”

Wondering if these are also “on the rolls minimum wage jobs” like mine. If yes, how can they put bread and butter on the table, buy a million $ house and educate their kids and thus ensure CANADA still remains in G7 for our future generations????

All in all, these are just feel good numbers and do not tell anything else, to me of course

#192 Robert Ash on 03.12.21 at 11:00 pm

Watched that one to the end… Thanks ! Best 4:28 min., I spent this week… Go Realtors Go!!