The guardian

Are the bankers worried?

One of them – a big poohbah at the nation’s largest lender – says it’s time to reconsider tax-free house gains. Gulp. Heresy. The country’s dominant real estate board has reacted in unvarnished disgust. And from the trenches, here’s the report of one of our own – slogging daily to hand out fresh loans, many in refinancing as people use their homes like ATMs (to buy more real estate).

I watch this and am shocked.  Like some mindless stampede.  Why this would happen during such a time of pandemic, virus and uncertainty is a puzzle, or perhaps not.  This smells a lot like some kind of societal breakdown, when I just know looking at these applications that there will be jobs lost and reversals galore. You have said, ‘This won’t end well’.  It won’t.  Best to stay lean, mean, with dry powder and a low profile.

Hmm. As noted there’s a budget coming down in Ottawa in three weeks. The first one since before the pandemic hit, when we entered the housing maelstrom. Once the March stats are published it will be evident the country has lost its mind. Our housing bubble is the biggest on the planet. Canadians devote more household income to paying off debt than any other G7 country. We fork over 65% more than American families for shelter. In the GTA there are almost 60,000 realtors and fewer than 10,000 listings. Unemployment last year was over 10% yet we borrowed $120 billion more. Two-thirds of people say the highest prices ever will only go up.

Does any of this sound, er, dangerous to you?

The International Monetary Fund says Canada’s at risk of having housing “destabilize” the whole economy. It’s calling for lenders to turn off the spigots and the country to slap on a speculation tax. Meanwhile even the Bank of Canada (as noted here yesterday) admits concern over the flipping in places like steamy Brampton, plus the FOMO seeping into the hick cities, burbs and backwoods where people used to live less stressful lives.

And did you catch the vibe at RBC? No flies on chief economist Robert Hogue. The bank is practically telling T2 the property bonfire must be doused.

“It’s overheating… Making matters worse: buyers and sellers expect prices to continue to escalate. Until recently, Canadian housing-market worries mostly reflected conditions in Toronto and Vancouver. Now, it’s a national concern.”

Should the feds act? “Yes,” it answers. And as this pathetic (but chiseled) blog had laid out, the reasons are obvious. First, real estate will correct. Inevitable. Nothing rises forever. And the bigger we let it get, the more guts will fly. Second, 60,000 realtors in one city show how we’re turning Canada into a house-horny economy, selling each other real estate instead of building stuff to sell the world. And housing inflation, FOMO and speculation are creating two classes – owners and serfs. The wealth divide grows daily. The kids can’t buy. Rotten social policy.

So, what to do?

Maybe whack investors, the bank says, by not letting owners of investment properties deduct financing costs (like in NZ). Ouch (half the condos in Toronto are investor-owned). Plus, FOMO has got to end. Canadians need to know prices will not rise forever.

“Policymakers should put everything on the table, including sacred cows like the principal residence exemption from capital gains tax. These considerations will be complex, controversial and no doubt fraught with unintended side-effects. Yet this support was largely designed during times when interest rates were much higher, and in some cases to counter the effect of high rates.”

To the Realtor Industrial Complex, them are fighting words. Lisa Patel, boss over at the Toronto Regional Real Estate Board, is aghast.

“Piling on a capital gains tax would mean homeowners get dinged when they buy (land transfer tax), every year while they own (property taxes), and when they sell (capital gains tax). Enough is enough,” she says. Of course, folks with financial portfolios are taxed every year on income received, pay HST on fees and capital gains tax on dispositions.

Lisa also claims this is an ugly idea because, “homeownership is the cornerstone of retirement planning for many people.” True enough, but this may flow from the abnormal tax break on house sale proceeds, coaxing people to have a risky one-asset strategy.

And this concern: “Many younger homeowners and buyers already feel like they have greater challenges than previous generations to become a homeowner, and now this would penalize them on the back end when they sell, something that previous generations were not subject to.” Again, true. But today’s buyers have 2% mortgages – a massive discount from the historic norm – plus 5% down payments (thanks to CMHC) along with tax-free RRSP deposits, a shared-equity mortgage and first-timer tax breaks. The hurdle is price. And prices might be a lot lower if residential real estate were not the only asset in the nation allowed taxless profits.

What next?

Don’t expect a capital gains tax on houses on the 19th. Not happening. Too rad. But I hear a national speculation tax based on length of ownership is in play. That might be enough.

Remember the 2017 dominoes? Everybody who buys in bubble must sell. When you can’t close because the guy you sold to can’t close because the guy he sold to couldn’t close because… well… FOMO ends in a hurry.

Will Justin man up?

About the picture: Madison, a shepherd-mix, waited in the ruins of her family’s burned-out home in California for an entire month until her owners returned. Rescue workers fed and watered the pooch, who refused to leave her station.

211 comments ↓

#1 Brian Ripley on 03.25.21 at 2:40 pm

I rebuilt my Employment and Unemployment charts to show annual data since 1976
http://www.chpc.biz/employment.html

I added tables showing the percentage changes over 10, 20, 30 and 40 years.

A major trend is forming and the 2020-2021 lockdown measures fit the trend.

Over the decades the number of us employed as a percentage is dropping (and unemployed rising) and the inflection points appear to be aligned with the major credit contractions of the 1980-81 rate spike, the 1990-91 oil/trade recession, the 2000-01 dotcom credit crash and the 2008-09 credit crash.

The 2020-21 pandemic recession fits the trend. Our productivity http://www.chpc.biz/employment.html#Productivity has increased as our employed population has decreased.

We do more with less labour and this trend will continue. Encourage young students to educate themselves appropriately. Choose educational paths that will lead to excellence in non-routine work.

The problem is going to be the growth in the unemployed data. In Canada, it’s up 22% over the last 10yrs and up 27% over the last 20yrs.

Governments globally should supply free contraception and family planning education. We do not need more unemployed people on this planet.

#2 Ponzius Pilatus on 03.25.21 at 2:44 pm

About the picture: Madison, a shepherd-mix, waited in the ruins of her family’s burned-out home in California for an entre month until her owners returned. Rescue workers fed and watered the pooch, who refused to leave her station.
————————
Yeah, that’s a dog for you.
Unlike some posters here, who leave as soon as there is a little bit of trouble.

#3 Ponzius Pilatus on 03.25.21 at 2:47 pm

#193 Faron on 03.25.21 at 1:15 pm
#187 Sail Away on 03.25.21 at 12:14 pm
#166 Kato on 03.25.21 at 6:12 am
#13 Ryan on 03.24.21 at 2:19 pm
Unless it’s a Tesla, which continuously becomes new again with every update. That’s the best part.

Do their OTA updates correct the galvanic corrosion in the suspension? Or the holes your dog tore in the seats? That would be awesome.
————————-
When I came to Canada, the domestic cars were so crappy that many people only bought cars that were more than 1 year old. The reason was, that by that time most of the factory defects were repaired under the 1 year warranty.
Then the Japanese came along, with five year bumper to bumper warranties, devastating the North American Auto industry.

#4 Josh in Calgary on 03.25.21 at 2:49 pm

It should be phased out after a certain period of owning. And you should be able to deduct any amount for renos and maintenance. After all, if I do a big reno and increase the value of the property then why should I pay capital gains on that portion?

#5 TurnerNation on 03.25.21 at 2:52 pm

This weblog said pandemics are temporary. Not in Kanada they aren’t. This all about compliance:

Yukon’s top doctor urges public to get vaccinated, no plan to lift restrictions (ctvnews.ca)
“Yukon has no current cases of COVID-19, but Hanley says there are no plans to lift health restrictions.”

– This is the future. Laid out clearly. a Techno-health tyranny: https://www.clearme.com/healthpass

–Gee didn’t see this coming – children must never again know normalcy in this New System.

“Ontario considers move to make remote learning permanent for all boards going forward (theglobeandmail.com)”
“Turkey’s remote education is project for future: Education Minister Selçuk (dailysabah.com)”

https://torontosun.com/opinion/columnists/furey-my-son-just-turned-three-all-he-knows-are-lockdowns

…or did you see it coming. This apparently was a priority to them last May:

https://www.governor.ny.gov/news/amid-ongoing-covid-19-pandemic-governor-cuomo-announces-collaboration-gates-foundation-develop
MAY 5, 2020 Albany, NY – Amid Ongoing COVID-19 Pandemic, Governor Cuomo Announces Collaboration with Gates Foundation to Develop a Blueprint to Reimagine Education in the New Normal”

– And this: 13 Aug 2020 https://www.weforum.org/agenda/2020/08/science-education-reset-stem-technology/

…………
-See this was the idea all along. Kommunism. All equal and poor.

Gov. Newsom: ‘We’re Not Going to Go Back to Normal’ Because ‘Normal Accepts Inequity’ (cnsnews.com)

– 94 pages…for our health? Really? |This is not a new world order??

https://unherd.com/thepost/why-has-public-health-turned-on-the-public
“The [UK] Government has just published yet more pandemic legislation under the catchy heading “The Health Protection (Coronavirus, Restrictions) (Steps) (England) Regulations 2021”. It runs at a mere 94 pages and outlines which day-to-day activities will be legally permitted or prohibited over the next few months”

#6 Leftover on 03.25.21 at 2:56 pm

Maybe the capital gains exemption is a red herring. It’s not something any politician is dying to try. But with a straight face they could:

1. Treat all secondary property transactions as regular income, and enforce existing laws to once and for all squelch rampant tax evasion.

2. Get CMHC out of the mortgage insurance business. Taxpayers shouldn’t be on the hook for leverage risk, let the private sector take that on (banks won’t touch it).

3. Strike a new deal in the real estate business – make all data available in real time and outlaw blind auctions, for starters.

No new taxes. Stop the transfer of wealth from young buyers to boomer sellers. Let the shoe drop. Win the next election.

#7 KLNR on 03.25.21 at 2:56 pm

as seen in Garth’s last survey, folks clearly vote with self interest being a priority. with 70% of Canucks owning real estate it will be interesting to see which party has the stones to propose additional taxes on residential properties.

#8 Dolce Vita on 03.25.21 at 2:57 pm

“Once the March stats are published it will be evident the country has lost its mind.”
“And the bigger we let it get, the more guts will fly.”

—-

Oh Garth.

Learn to be more forthright.

THAT was good.

[I like it when you get visceral]

——————-

“Precious”.

Tax “Precious”?!

A nation of Gollum’s in revolt.

Canada, reverting to Sméagol won’t be all THAT bad.

Fewer wrinkles. No bug eyes.

#9 Sue on 03.25.21 at 2:57 pm

Just like the movie Hachi! Must see for dog lovers. Keep the tissue close. Dogs are so wonderfully loyal almost to a fault.

#10 Pricedoutmillenial on 03.25.21 at 3:00 pm

From your earlier post:
—————————————-
Better solutions include a levy on speckers and flippers, higher downpayments for everyone (especially investors), graduated capital gains taxes on all residential properties and realtor reform to deal fairly with multiple offers, bully bids, blind auctions and market transparency.

So it looks like
#1 is a Check
for this budget..

#11 The West on 03.25.21 at 3:05 pm

I can hear it in Eisenhower’s voice:

“… we must be forever vigilant of the REALTOR INDUSTRIAL COMPLEX…”

#12 Big Mac on 03.25.21 at 3:05 pm

Will Justin man up?

No, never has, never will

#13 Tony Dimante on 03.25.21 at 3:06 pm

Garth, everyone knows it is the central banks and banks, lenders that loved low to very low interest rates now for decades. I classify low mortgage rates anything under 5%.

Since, 2009, at least 12 years almost now mortgage rates have been 4% or less. Compare this to just start of the century, year 2000, 7.5%+ mortgage rates. Now, with 1.7% to 2% mortgage rates are still really ridiculous.

I think a good policy move would be make mortgage insurance from CMHC much higher, add a 1.25% point per year increase so 6.25% more or $625 per $100,000 5 year term up to $500,000 and over $500,000 12.5% higher CMHC insurance premiums of $1,250 per $100,000.

Also, a much bigger down payment of 10% for under $500,000 and 20% for over $500,000. The Bank of Canada needs to raise rates. We also need much higher interest rates, at least a minimum 3.5% mortgage rate over the next 18 months.

#14 Concerned Citizen on 03.25.21 at 3:07 pm

I doubt they’ll do anything. Policymakers the world over are trying desperately to preserve paper wealth for millionaires and billionaires, while throwing those without assets – including most young people – under the bus. All assets are absurdly expensive relative to historical norms – homes, stocks, bonds, everything. And if history is any guide, high asset values beget low long-term returns. How do we expect those without assets to grow their wealth in these conditions? As you say Garth, this is terrible social policy.

They’d better be careful in their “disenfranchise young people” policy though, because young people – especially skilled young people – have freedom to move, and may not want to be debt serfs their entire adult lives. With each passing week I spend more time looking abroad. I don’t want to leave Canada, but realistically I may have little choice.

I maintain that nothing will change until central banks no longer cater to millionaires and billionaires by keeping real rates negative. And I very much expect that day to never come. Canada is rapidly turning into a place where social mobility is next to impossible, and judging by policymakers actions this is exactly what they want.

#15 Dolce Vita on 03.25.21 at 3:08 pm

The damning of the Suez Canal by the 220,000 ton Ever Given ship stalling 10% of the World’s Oil supply.

As usual, the Comedians of the World came out in force on Twitter with updates and novel solutions to the stuck ship.

Hourly, daily dispatches from the Digger:

https://twitter.com/SuezDiggerGuy/status/1375025667503501312

Novel solution by a community of Forex Traders that always are on the “Up” and Up:

https://twitter.com/forexflowlive/status/1374728053675470851

For more memes (and some actual news about the ship):

https://www.vox.com/2021/3/24/22348186/ship-stuck-suez-canal-blocked-ever-given-memes

#16 JLinVic on 03.25.21 at 3:10 pm

So if any of these changes materialize, we are looking at years before they pass into legislation, right? How does this help now? Are we expecting the market to price it in immediately? I can imagine the scores of people panicking to sell their rentals after they can’t write off almost all of the income. Properties already can’t cash flow – what happens when they have to actually pay taxes on that income? That would be a big one.

#17 Peter McLean on 03.25.21 at 3:11 pm

I ain’t paying anymore tax. I going to take my life savings and park it in Bitcoin. It’s safe. The guy who sits beside me at work said it was so it must be.

#18 Andy Boyd on 03.25.21 at 3:16 pm

Maybe we should put a speculation tax on the banks, lenders, corporations that are taking on too much risk with borrowed, leveraged, cheap money, low interest rates that they called for with the help of their central bank buddies.

#19 Dolce Vita on 03.25.21 at 3:19 pm

Yup, there will be an election but it will depend upon how the vax drive goes as to when.

I think Spring in case the Budget is a disaster, which all of Canada knows it will be, so let the flames die down on that and happier vax’d Cdns by then.

Election may be sooner though.

Jagmeet wanting to reach out to Cdns in a “novel” way. This 3 hr ago on Twitter and 1 reaction to Jag’s Tweet:

https://twitter.com/markcritch/status/1375150660451233802

————————

Yup, just another Covid-19 day on Planet Earth.

#20 Jens Happe on 03.25.21 at 3:19 pm

Wouldn’t a capital gains tax on your principal residence be as counterproductive as first-time home buying incentives have proven to be? If homeowners face being dinged with a big tax, wouldn’t they hold off on selling, driving down supply and fueling the price explosion even more?

#21 Doug t on 03.25.21 at 3:19 pm

Like lemmings to the sea

And I agree with chappy on “societal breakdown” – I’ve said as much before, we as a society are at a turning point in history- Yuval Harari makes a great assessment of the human race in his book Sapiens, we have become lost souls running wild, disconnected from nature and spirituality with no sense of purpose – technology has brought us to a precipice and the future looks bleak

#22 Albertastrophe on 03.25.21 at 3:21 pm

Uh oh, Alberta is Pooched!:

Turns out, the Carbon Tax IS Constitutional after all:

https://www.cbc.ca/news/politics/supreme-court-federal-carbon-tax-constitutional-case-1.5962687

The beginning of the end of Alberta’s decades of oblivious denial about the backbone of its economy.

If you live in Alberta, put your home up for sale ASAP or your value will be down by probably 90% by 2026.

And if Albertans want any kind of economic future, get rid of the Kenney dinosaurs, vote NDP or Lib and get a government that can create some new ideas for a future for you.

The ability, and soon the necessity, to massively tax carbon will blow up things pretty badly for Alberta.

#23 Millennial 1%er on 03.25.21 at 3:24 pm

raising taxes? how about not artificially crashing interest rates by printing oodles of cash?

1 bitcoin buys the same amount of house every yera

#24 Avi Barzelai on 03.25.21 at 3:24 pm

Taxing capital gains on real estate is a good idea. Money will always flow to the lowest tax bracket, which is part of the reason why we have bloated real estate costs. Will it solve the problem? No. Real estate prices in the current situation ballooned because central banks dropped interest rates. That’s it, that’s all. Central banks, good or bad, are using the housing market to prop up the economy. This is not a problem that will be solved anytime soon, because the people in power don’t think it’s a problem, they think it’s a solution.

#25 KLNR on 03.25.21 at 3:26 pm

@#18 Andy Boyd on 03.25.21 at 3:16 pm
Maybe we should put a speculation tax on the banks, lenders, corporations that are taking on too much risk with borrowed, leveraged, cheap money, low interest rates that they called for with the help of their central bank buddies.

watch how quickly they turn off the taps without CMHC.

#26 Paul on 03.25.21 at 3:27 pm

big poohbah at the nation’s largest lender – says it’s time to reconsider tax-free house gains. Gulp.
————————————————————————————————
I know let’s tax the banks more that’s where the money is!
Tell the bankers to stick to banking! The Government doesn’t need any help TAXING!

#27 S.Bby on 03.25.21 at 3:27 pm

Government and the CMHC need to stop backstopping the banks who have no risk. If the banks shouldered the default risk then mortgage rates would be a lot higher.

#28 IHCTD9 on 03.25.21 at 3:30 pm

“But I hear a national speculation tax based on length of ownership is in play. That might be enough.”
____

If Trudeau does this, and does it properly (IE – Howitzer in the face level financial pain for quick flippers 5 years and under), I promise I will come on here and post something nice about him.

#29 KLNR on 03.25.21 at 3:31 pm

@#21 Doug t on 03.25.21 at 3:19 pm
Like lemmings to the sea

And I agree with chappy on “societal breakdown” – I’ve said as much before, we as a society are at a turning point in history- Yuval Harari makes a great assessment of the human race in his book Sapiens, we have become lost souls running wild, disconnected from nature and spirituality with no sense of purpose – technology has brought us to a precipice and the future looks bleak

“Life is a mirror and will reflect back to the thinker what he thinks into it.” — Ernest Holmes

#30 Tripp on 03.25.21 at 3:31 pm

We are in a new era, when a dog has more solid values and principles than many of humans. Madison shows loyalty, attachment, love and dedication.

Meanwhile, our success in life is measured in square feet, horsepower (or mAH), air-miles, selfies and FB friends.

#31 mj on 03.25.21 at 3:42 pm

the best way to slow down the housing market is to lower the amortization to 20 years max. It would be less spending power to the buyer. Seems like a very simple solution to me.

#32 Classical Liberal Millennial on 03.25.21 at 3:42 pm

I’m not feeling this idea of capital gains on a principal residence. We bought our first and only home, which we reside in fulltime, 9 years ago. It is not part of our retirement plan. We are not flippers. We are not speckers. Why should we be dinged when we sell? This should be a last resort.

#33 Paul on 03.25.21 at 3:42 pm

It’s amazing blaming Real Estate Boards, Agents, Greedy Sellers? The Government/C M H C low down payments, Banks paying nothing on accounts giving out mortgages @ 2% and as soon as the buyer moves in the bank sends out card and Heloc offers to bury them deeper. They control the bubble and try to shift blame.

#34 Dolce Vita on 03.25.21 at 3:42 pm

Speaking of, Just another Covid-19 day on Planet Earth…

You can’t make this up.

EU pissed at Vax Hog UK (10M doses in Feb to them from the EU, 0 AstraZeneca doses from Vax Hog UK to the EU).

Game On: EU export controls for the next 6 weeks.

…meanwhile

Yesterday, a La Stampa reporter discovers in Rome, stashed by AstraZeneca:

29M doses

Gov Italia not a clue and right under their noses at the Rome Agagni plant. Hastily claims the doses were destined for Belgium. To make the story sound good they added 10M of the doses were for Covax (for the World’s poor, who can argue with that).

https://www.rainews.it/dl/rainews/articoli/Dosi-vaccino-AstraZeneca-in-stabilimento-Anagni-Palazzo-Chigi-Destinate-al-Belgio-a56351ae-604b-4c5d-b944-672d08c66536.html

EU Commish Thiery Breton says “Oh no they’re not, they’re now staying in the EU”.

—————

Personal Note to Justin:

Pretend your Covax, like you already are and HELOC that stash andale to Canada.

The EU won’t notice. Trust me, I live there.

#35 NoOneOfConsequence on 03.25.21 at 3:47 pm

Now for something completely unconventional…

How about we just carefully plan and systematically reduce the size of government?

Governments that focus more on governing, and less on pushing agendas, drugs and alcohol would probably do a better job.

When the CEO of a company starts micro-managing the mail room, the company is in trouble.

When the government starts micro-managing the populace…the country is in trouble.

#36 The Woosh on 03.25.21 at 3:52 pm

The International Monetary Fund says Canada’s at risk of having housing “destabilize” the whole economy. It’s calling for lenders to turn off the spigots and the country to slap on a speculation tax.

———————————————

Laughable! They’re worried about a destabilizing economy? I don’t think so…more like they want it to happen. Turning off the spigot and slapping on a spec tax will destabilize the economy. It becomes a self-fulfilling prophecy. Leave it be…the economy will take care of itself when it’s ready.

#37 Armpit on 03.25.21 at 3:53 pm

Friend’s neighbour was approached by a Real Estate Agent, encouraging them to list their home for sale.

They didn’t initially think about selling. They live in the poor area of Thorold Ontario. About 800 square foot wartime home.

Agent suggested they sign with him for two weeks… yes… only two weeks. They can list the house for $399,000 and see what blind offers come in.

Non binding for them to accept any of them, and no commission paid if the decide not to sell. It was suggested they may fetch way way way over… over 500 +++

I asked what are they doing??

Friend said they are looking at properties further away to see what $500 can buy before they decide.

And that’s whats happening.

#38 Ken on 03.25.21 at 3:57 pm

Anybody know how many Canadians are debt and mortgage free?

Just wondering.

#39 Larry App on 03.25.21 at 3:57 pm

Well Garth , looks like we are going to get taxed much more eh? At this point , honestly , what is the point of working long hours to try to get ahead and/or leave more than what you found to the offspring if the govt comes in and takes roughly half of what you make?

#40 ts on 03.25.21 at 3:58 pm

#5 TurnerNation

MAY 5, 2020 Albany, NY – Amid Ongoing COVID-19 Pandemic, Governor Cuomo Announces Collaboration with Gates Foundation to Develop a Blueprint to Reimagine Education in the New Normal”

Yes. They start with the children in their plan for global dominance. “The hand that rocks the cradle rules the world.”

#41 Puzni on 03.25.21 at 3:59 pm

RE #14 Concerned Citizen ;

Your post is right. Why would anyone from RBC, which is in a money lending and financing say they don’t want to make more money? When was the last time someone in business say they don’t want any more business? They know that at some point either younger workforce will start to look for opportunities somewhere else(outside of Canada) or they might demand harsh government action. There are too many players involved in the real estate so I don’t except much of government action now. Basically low interest rates, removing business risks with bailouts and continuous money printing have caused this.

#42 Ponzius Pilatus on 03.25.21 at 4:05 pm

#29 KLNR on 03.25.21 at 3:31 pm
@#21 Doug t on 03.25.21 at 3:19 pm
Like lemmings to the sea

And I agree with chappy on “societal breakdown” – I’ve said as much before, we as a society are at a turning point in history- Yuval Harari makes a great assessment of the human race in his book Sapiens, we have become lost souls running wild, disconnected from nature and spirituality with no sense of purpose – technology has brought us to a precipice and the future looks bleak

“Life is a mirror and will reflect back to the thinker what he thinks into it.” — Ernest Holmes
—————-
Ernest Holmes, eh.
I got a quote from a guy on the other side of the equation:
“If you stare into the abyss long enough, the abyss will stare back”
Nietsche 

#43 Dolce Vita on 03.25.21 at 4:07 pm

One Last Salvo…

Good news about getting back to normal.

Yesterday Provinces, Territories set a new daily vax’ng record of:

170,604 doses administered (prior record was 164K last week).

A BIG step up from Mar 23’s 125,338.

Also good news (I think) Single to Double dose ratio going up:

5.6 to 5.8X in 1 day.

If Canada keep single AND double dosing, 32M Cdns ≥ 15 yrs old, incl all dosed to date, it will be done at today record rate by:

March 8, 2022

My strategy is stop double doses now, go SINGLE DOSE ONLY from now on in. If so, Canada done by, as in 32M Cdns ≥ 15 yrs old single dose vax’d:

September 2, 2021

Herd immunity probably achieved before then. Say 80% is the magic number, that happens on:

July 31, 2021

THAT is when I would resume double doses.

Canada then returns to prosperity, wealth generation, normalcy land and peace of mind a LOT quicker.

And Moderna, for instance, claims 92% efficacy with a single dose.

-FWIW

——————

PS:

2 days ago Variant spike of 726 new cases was indeed an anomaly. Yesterday back to a more consistent (with prior data) 316 new cases.

Cumulative variant cases still trending much, much closer to linear than exponential. But, the numbers by themselves are a bit scary:

+716% cumulative variant case increase in the past 31 days.

So far, Canada keeping a lid on the variants…a good thing.

#44 AM in MN on 03.25.21 at 4:11 pm

The real estate market will correct, like all markets, and there will be real pain for some.

There are also much bigger economic and social issues going on with the trend towards ever more centralized control over the economy.

Today’s ruling over the supposedly constitutional questions of the federal governments right to take carbon dioxide emissions will have far reaching consequences with regard to the forward march of centralization and the gutting of the private sector economy.

This insane spouting of the usual leftist moralizing from the Chief Justice, “Chief Justice Richard Wagner said in the written ruling that climate change is a real and existential threat to Canada and the entire world, and evidence shows a price on pollution is a critical element to addressing it.”

No evidence was litigated.

No evidence anywhere that higher taxes led to substantially lower consumption of necessary energy.

The main effect will be simply make it more likely that heavy industry doesn’t expand, and the country continues to need more money printing to pay the bills, such as the $400k/yr it takes to keep this out of touch Ottawa elitist in comfort.

Meanwhile, the rest of the world moves on. Check out the missed opportunities in LNG exports due to this nonsense.

It isn’t just Canada, it’s other western democracies that seem to have run their course. Australia is importing refined oil from China, who it exports all sorts of raw materials to, after closing 2 of it’s 4 refineries. These imports come with conditions, like not speaking out against the concentration camps. Welcome to the future for your grandchildren.

#45 Shirl Clarts on 03.25.21 at 4:13 pm

Garth, can you tell us why the Liberal government was allowed to skip a budget? We know Covid spending put things out of whack, but you still need to budget for all the other expenditures. My household had to.

#46 Lee on 03.25.21 at 4:13 pm

I think it is safe to say now that there has not been a major and sustained (at least two years) pull back in real estate prices in the GTA in twenty-five years. That’s a long run.

#47 Karen on 03.25.21 at 4:18 pm

Garth you correctly started calling Canada’s economy a “condo economy” after you correctly assessed that Canada had a housing bubble back in 2008 (based on economic fundamentals). At that time you also said that CMHC was Canada’s Economic Action Plan during the GFC, which was also spot on.

Years ago you pointed out that investors in some Canadian cities were responsible for half of all new condo sales. That isn’t a recent thing.

Over the past 2 decades, Canada has been making it too easy for investors/speculators/flippers to buy up properties with equity, creating artificial demand, pushing inventory to unusually low levels, and obviously pushing prices to unimaginable levels.

Unfortunately Canada’s economy has become dependent on this housing ponzi scheme activity. No country has maintained permanent prosperity with this type of lazy strategy. It simply isn’t possible. History proves it.

All housing bubbles have two stages – the boom and the bust. Canada’s bust stage will happen, and it could start tomorrow for all anybody knows. Nobody can predict exactly when.

Making mortgage rule or tax exemption changes won’t matter now. It’s too late. That ship sailed in 2006. Canada’s magnificent housing bubble faces a catastrophic price correction. It’s inevitable.

#48 Shirl Clarts on 03.25.21 at 4:19 pm

Yes, of course Trudeau with pick option B – the Spec tax.

I already have his speech written….

“Allowing investors with deep pockets to inflate the price of the average Canadian home cannot be allowed to go unpunished, as it hurts the middle class… and those working hard to join it. “

#49 AmbiVasu on 03.25.21 at 4:24 pm

To show our kid the delta between “Own vs Rent” we did a quick, back of the cigarette pack excel calculation. This is what we found using the Financial Consumer Agency of Canada mortgage calculator: https://itools-ioutils.fcac-acfc.gc.ca/MC-CH/MCReport-CHSommaire-eng.aspx

We considered a 620k house (a two bed condo)with a down payment of 20% (120k) and a 500k mortgage with 25 year amortization.

For rental comparison we used the current rent of these condo’s at $2,200/month with a 2.5% raise every year.

What we found is as follows:

Monthly mortgage amount the landlord paid as per the mortgage tool was $2,117.26 (capital + interest) per month. This worked out to a total of $635,178 (500k capital+ 135,178 int) over 25 years. Add to this 120k down payment, the landlord paid about 755k in total over 25 years

But the tenant had paid to the landlord a total sum of $1,071,851 in the same 25 years.

This means that the landlord earned 300k over the total invested on the same house

In addition, the landlord had the house free to sell after 25 years.

Not sure, there are some errors in the calculations but if we considered the numbers above, a capital gains tax on all non principal residencies definitely need to be looked at

You forgot condo fees. Over 25 years that comes to at least $120,000, plus insurance and special assessments. Oh, and higher rates upon mortgage renewals, plus the lost investment use of the down payment money. Also temporary vacancies, redecorating and maintenance over a quarter decade, plus rent controls. Suggest you let schools teach. – Garth

#50 The real Kip (Ret) on 03.25.21 at 4:27 pm

Of course the $20-trillion printed by CB’s around the world is not going to be inflationary. Let’s just blame homeowners, much easier.

Prices are going up.

#51 Stone on 03.25.21 at 4:29 pm

Whatever happens to real estate will happen. I do like the rules imposed in New Zealand as well as South Korea. Would be nice to see the same here. In the meantime, I’ll focus on my balanced and diversified portfolio with an 8.35% return ytd.

Next stop? April 19th and the federal budget. Will it be anything like yesterday’s Ontario budget which will only have a balanced budget by 2030?

2030!!! WTF?!?

#52 Prince Polo on 03.25.21 at 4:31 pm

Never did I think that banks would be the first in line to cry the crocodile tears! We’ve got the dastardly & diabolical trifecta (banks, realtors, buyers) in cahoots, while the government (current and previous) picked lint out of their navels: “oh, that’s a fuzzy one”!

Perhaps some suggestions for each one of the guilty parties:
A) Banks – get rid of CMHC and push actual risk assessment back onto the banks! Also, publicly flog (punitively & substantially fine) any parties involved with inflating incomes/assets on mortgage applications
B) Realtors – these crooks can’t be left to self-regulate; nationwide bid system implemented to force transparent bidding and automatic sale if offer is for list price!
C) Buyers – institute mortgage licenses that require buyers to actually learn something about amortization tables, debt loads, and financial suicide!

Oh who am I kidding – nobody cares! Keep issuing those gargantuan mortgages so bank stock dividends can keep getting juicier.

#53 Alberta Ed on 03.25.21 at 4:31 pm

Justin man up? His budget blame-catcher, Chrystia Freespender, has more balls. Homeowners will get screwed, along with every taxpayer, but not until after the election.

#54 Dolce Vita on 03.25.21 at 4:33 pm

#5 TurnerNation

“Yukon has no current cases of COVID-19, but Hanley says there are no plans to lift health restrictions.”

——————

That’s wrong I think. Look it, Yukon West is at 78% single dose vax’d and data from 2 days ago, probably closer to 80% tomorrow?

I would drop restrictions in Yukon West. If no cases, then guess what…first in the World to achieve Herd Immunity.

They have got to be so close in that region to herd immunity, see Territory graphic:

https://yukon.ca/this-is-our-shot#vaccine-progress-in-yukon

———————-

As for the UK, worse yet than you wrote:

MPs agree to extend Covid powers until September…

https://www.bbc.com/news/uk-politics-56521358

#55 Sail Away on 03.25.21 at 4:35 pm

#3 Ponzius Pilatus on 03.25.21 at 2:47 pm

When I came to Canada, the domestic cars were so crappy that many people only bought cars that were more than 1 year old. The reason was, that by that time most of the factory defects were repaired under the 1 year warranty.

———-

1923?

#56 Doug t on 03.25.21 at 4:36 pm

#29 KLNR

“Try to imagine what it will be like to go to sleep and never wake up… now try to imagine what it was like to wake up having never gone to sleep.” – Alan Watts

#57 Leprechaun on 03.25.21 at 4:38 pm

I rent a house that is in there 7 year old daughter’s name.

Nope. A minor cannot enter into an enforceable contract to hold legal title to real property. – Garth

#58 chris on 03.25.21 at 4:41 pm

I might be stupid but I don’t see how a capital gain tax on principal residence will make the prices go down. Contrary IMO people will just not move which will see way less listings so price increases or ask more for the house in order to buy the next one … And BTW second residences being kept empty or rented are TAXED for capital gains .. and all repairs and enhancements are subject to HST …. beside the LTT … What other investment is taxed upfront like RE (LTT) ? Nothing else .. Also if you don’t make or loose money when you sell principal residence you can’t carry looses over .. You cannot deduct interest cost as any other investments .. and so on .. I say the worst idea ever … political suicide .. enough with taxes taxes taxes .. there are many other ways to cool the market
Use a minimum 20% down .. no more 5% and will see the market stabilize

#59 Freedom First on 03.25.21 at 4:41 pm

Garth, beautiful story about Madison and friends. I have been blessed in my life by having dogs, and even some people, share with me their spirit as Madison does. I know many Blog dawgs have also been blessed!

#60 Oakville Rocks! on 03.25.21 at 4:50 pm

Wow – what a dog! Cheers to Madison the Shepherd-mix. Most of us humans are not worthy of our dog’s devotion.

Bring on a capital gains tax on residences and definitely tie the inclusion rate to the inverse of length of ownership. But why stop there? When was the last time the tax code was overhauled? The 60’s? If 40% of Canadians pay no net- tax then a review of the tax code and subsidies is needed.

Having said that – I would prefer if these measures were considered by a majority government and not one beholden to the NDP/BQ.

#61 CHERRY BLOSSOM on 03.25.21 at 4:55 pm

In the old days we had a 25 to 30 % down payment requirement, no funds from RRSP, no grants and no tax incentives. Let’s just go back to reason. Interest rates on on the rise and so is the taxpayers vunerability. Like we need that. I haven’t already said that.

#62 Faron on 03.25.21 at 4:56 pm

#3 Ponzius Pilatus on 03.25.21 at 2:47 pm

#193 Faron on 03.25.21 at 1:15 pm
#187 Sail Away on 03.25.21 at 12:14 pm
#166 Kato on 03.25.21 at 6:12 am
#13 Ryan on 03.24.21 at 2:19 pm

————————-
When I came to Canada, the domestic cars were so crappy that many people only bought cars that were more than 1 year old. The reason was, that by that time most of the factory defects were repaired under the 1 year warranty.
Then the Japanese came along, with five year bumper to bumper warranties, devastating the North American Auto industry.

Some of the stories that have come out of the old GM plants are horrific and I’m sure that attitude to quality was industry wide domestically. No Surprise that Toyota, Honda and Subaru came in and ate their lunch even after stiff import taxes/tarrifs. Hearing wheezing power steering pumps in Chryslers with 80k miles has sworn me off of North American cars.

That said, there’s a Ford Escape in the family that is well loved and has served reliably. So, times have probably changed.

#63 Sail Away on 03.25.21 at 4:57 pm

#21 Doug t on 03.25.21 at 3:19 pm

Like lemmings to the sea

And I agree with chappy on “societal breakdown” – I’ve said as much before, we as a society are at a turning point in history- Yuval Harari makes a great assessment of the human race in his book Sapiens, we have become lost souls running wild, disconnected from nature and spirituality with no sense of purpose – technology has brought us to a precipice and the future looks bleak

————

Speak for yourself; my life is greatly fulfilling and has much purpose: industry domination, hunting, money.

Harari thinks it’s the connection to nature? Maybe rudderless people should take up hunting, foraging and fishing. Or homestead like Wrk.dover.

#64 cuke and tomato pickere on 03.25.21 at 4:58 pm

I agree with being lean, mean, (not too mean) keep a low profile and keep your powder dry. Enjoy your family with
spring and summer coming soon we will all be vaccinated
and there will only be pleasure and enjoyment to look forward to.

#65 Sparky on 03.25.21 at 5:01 pm

Good, I hope that some sort of government intervention can help cool this market. People cry when their single asset starts to lose money but don’t blink an eye when their portfolio dips. Why? Because housing “has to” appreciate. If you viewed it as an investment, much like your portfolio, then you shouldn’t be concerned if the prices dip, especially when it enables you to purchase another at a lower cost.
Society took a place for shelter and found a way to exploit it so they can sit at home collecting rental income, and from first hand experiences, evading taxes, tenancy rights and just general pride taken on home ownership. Just because you bought a house and it happened to go up, doesn’t make you the wolf of Wall Street. If you were though, you should have the savvy to adapt in case it went down right? Like a balanced portfolio..
The notion that people want to sip the kool-aid, have a place to call home, raise a family and live near friends and family with no monetary gain is viewed with disgust.
I have always said to greedy home owners and speculators, you reap what you sow. I hope that through years of neglecting rental properties, running rental housing like a puppy mill and driving up property costs you are content living in a dilapidated neighbourhood, filled with unfriendly people where your own kids can’t afford to live in. When you’ve finally done enough complaining as you age about how “this place has changed”, you cash out your pretty little profits and move to greener pastures, only to find your money doesn’t go as far as you think. All the while needing to compete with half the retirement complex for that same house. Good riddance.

#66 Faron on 03.25.21 at 5:03 pm

@ IHCTD9:

Tools question if you’ll suffer it.

As a newish owner of a mouldy bung(alow), I have need for better power tools. I’ve been living with cheap and/or second hand corded tools and am looking at cordless.

I’m tempted by RIGID’s offerings, but wondering if it’s worth it to splash out on DeWalt or Milwaukee? Looking brushless and these are going to get a typical handy homeowner’s level of use. Bathroom reno is in the queue (a need not a want BTW), may convert the garage to a suite somewhere down the line.

Thanks in advance.

#67 gfd on 03.25.21 at 5:04 pm

Canadian housing market faces ‘moderate’ degree of vulnerability: CMHC

https://www.ctvnews.ca/business/canadian-housing-market-faces-moderate-degree-of-vulnerability-cmhc-1.5361995

#68 Dave on 03.25.21 at 5:07 pm

RBC, the biggest loaner to oil companies hinting at a bubble, imagine that.

#69 Timmy on 03.25.21 at 5:09 pm

“Will Justin man up?” Not if history is any guide. He cut in half the TFSA contributions, he’s not enacted tougher measures on the housing market, he doesn’t care, he’s a rich property owner. He’s done almost nothing to clamp down on money laundering through real estate…

#70 Doug t on 03.25.21 at 5:19 pm

#63 sail away
Speak for yourself; my life is greatly fulfilling and has much purpose: industry domination, hunting, money.

Bully for you – you get a gold star when you leave this rock

#71 Dogman01 on 03.25.21 at 5:20 pm

Row of Houses
https://www.youtube.com/watch?v=EIvBPmv_rfg

Our new post national state anthem!

Great video & song for Canada today.

#72 604_housing on 03.25.21 at 5:20 pm

New law – commission for real estate agents is calculated on the lesser of the sale price or the listing price. Also make it so that it can’t be greater than 1.5% of existing sale price.

#73 Wrk.dover on 03.25.21 at 5:24 pm

#47 Faron on 03.25.21 at 5:03 pm

————————————————-

Cut all of the chords to 6″, get twist locking connectors and one chord. I hang doors with up to five tool with only one chord. No tangles.

$50 B&D 20V chordless drill @ CTC is convenient, all else is overkill. 1/2″ Milwaukee chorded hammer drill will last your life. The cheap blue and yellow CTC belt sander is good, but their hammer drill died on me. Mystery electronics inside. No idea why. Friends router, same story.

#74 Shirl Clarts on 03.25.21 at 5:26 pm

#50 The real Kip (Ret) on 03.25.21 at 4:27 pm
Of course the $20-trillion printed by CB’s around the world is not going to be inflationary. Let’s just blame homeowners, much easier.

Prices are going up.

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

Indeed. But if prices are going to stay up (4/5ths of it anyway), don’t we need wages to go up at the same time rates go up? I don’t think this is lost on the BoC, especially if they want to avoid a market crash.

#75 CapitalK on 03.25.21 at 5:26 pm

#6 Leftover

Maybe the capital gains exemption is a red herring. It’s not something any politician is dying to try. But with a straight face they could:

1. Treat all secondary property transactions as regular income, and enforce existing laws to once and for all squelch rampant tax evasion.

2. Get CMHC out of the mortgage insurance business. Taxpayers shouldn’t be on the hook for leverage risk, let the private sector take that on (banks won’t touch it).

_______________

#2 will never happen, do you know what happens with mortgages after they are originated? Majority of loans don’t just sit on a lenders balance sheet as a receivable…The secondary market needs default insurance to MBS the loans as essentially a risk free asset.

I agree with #1. And I think if a flipper or RE investor/speculator is only planning to hold a property for less than 2 or 3 years the that should be taxed as full cap gains as well.

#76 Grasshopper on 03.25.21 at 5:28 pm

Can you tax number of kids?

Too many people is bad for the planet.

First kid, the government provides a monthly allowance. Second kid, no more additional allowance.
Third and subsequent kids are taxes (a monthly fee).

You can have more than two kids if you want, but it will cost you.

Just like, you can choose to drive a Prius or a Suburban. The Suburban driver buys a lot more gas (and pays more tax) to cover 100kms than the Prius driver.

Added benefit, as the number of people in Canada decreases, the demand for the existing supply of real estate will decrease, so the price of real estate will also decrease.

(We could keep housing demand, and prices, stable by using immigration to keep the population steady)

#77 Jason De Rocher on 03.25.21 at 5:31 pm

Madison is a very good dog.

#78 willworkforpickles on 03.25.21 at 5:34 pm

The conventional fix to rising debt to GDP ratios in the past to keep the debt from becoming too unmanageable was to raise taxes and/or cut spending. That ship has left port for good. That debt is unmanageable now with only fuel to the fire to make it worse stoking it now.
With the US officially having no intention of ending debt spending under the Biden admin. along with T2 in Canada to follow in lock-step there…it leaves only further taxation for them to work with, but not for long… as that dilemma of consequence is reaching its saturation point now.
Pair this up with how runaway government spending and new debt creation can ultimately slow the economy with the only band-aid solution (non-solution) they have remaining through raising rates. Slowly at first but like a dam holding a large body of water back that starts to crumble later.
An imperilled economy with stifled growth will result from all this (self serving greed) mindless runaway debt creation, a true curse on every nation and people as many are gradually beginning to realize.
Expect a stifled (real) growth dilemma as interest rates will be forced higher. The end result/s won’t be near as pretty as many seem to believe they’re going to be.

it competes with businesses and consumers for loans, thereby forcing borrowing rates prohibitively high and imperiling growth.
But if interest rates exceed growth rates, debt-to-GDP ratios are likely to increase quickly, which will force governments to raise taxes or cut spending, or both, to stabilize public finances.

#79 WTF on 03.25.21 at 5:34 pm

Are we now understanding the travesty of being forced by the Liberal Party to take Manboy as our “leader”?

For our less than financially astute PM and FM nothing substantive to deflate this gasbag will be forthcoming. Unless its in the binder of talking points the Buttster left behind for his Vacantness to read word for word in the HOC, whilst gulping air every 4th syllable.

#80 Vic HOOD on 03.25.21 at 5:35 pm

Has anybody seen Kondratieff? He’s around here somewhere.

#81 Jim on 03.25.21 at 5:37 pm

@24
‘That’s it, that’s all’? You don’t think people are rushing to hard assets like real estate as the pending inflation bubble grows larger? There are more factors at play than cheap money.

#82 Barb on 03.25.21 at 5:39 pm

Heart-wrenching story about Madison.
The housing issue?
Like everything else, it can be fixed by giving more money to government.
Jeez.

#83 David Greene on 03.25.21 at 5:42 pm

Isn’t this somewhat analogous to a drug dealer lecturing his buyers that they should take live a more healthy lifestyle?

“It’s overheating… Making matters worse: buyers and sellers expect prices to continue to escalate. Until recently, Canadian housing-market worries mostly reflected conditions in Toronto and Vancouver. Now, it’s a national concern.”

#84 willworkforpickles on 03.25.21 at 5:45 pm

I should add to that last post: resorting to raising taxes beyond the saturation point and cutting spending to essential services after raising interest rates eventually too historical norms will be our governments final desperate course of action.

#85 Rogerhomeinspector on 03.25.21 at 5:46 pm

Tax principle housing gains on a decreasing rate over time to zero percent after say 25 years. Any other income from real estate sales- such as the sale of a second property such as a cottage or rental- should be taxed as a capital gain. Eliminate CMHC. If we’re going to be a capitalist economy let’s stop privatizing profits and making public the risk. This is nonsense.

I do believe we should incentivize business and innovation. So you start a business and it’s profitable you should be able to sell it tax free. No handing it down to kids etc… or you’ll be hit with a significant inheritance tax. Actual sale to another entrepreneur at fair market price.

We need to stop this nonsense of convincing ourselves we’re wealthy because we’re sitting on unrealized housing profits. These gains are based almost solely on the reduced cost of borrowing and the generous protections offered to lenders (CMHC). We need to get back to actually creating something of value that the world wants to buy. My favourite saying still applies… dirty hands, clean money.

#86 leebow on 03.25.21 at 5:50 pm

Amateur landlords and flippers hold more than 500 thousand units in Ontario. And possibly much more. That’s 10%+ of the total housing stock.

I’m sure BoC can run some queries and find how much financial leverage they use. Could it be that they were prudent all along? Are they gonna be able to sustain a 15% stress?

As Warren B says, only when the tide goes out do you discover who’s been playing dominoes.

#87 KLNR on 03.25.21 at 5:51 pm

@#42 Ponzius Pilatus on 03.25.21 at 4:05 pm
#29 KLNR on 03.25.21 at 3:31 pm
@#21 Doug t on 03.25.21 at 3:19 pm
Like lemmings to the sea

And I agree with chappy on “societal breakdown” – I’ve said as much before, we as a society are at a turning point in history- Yuval Harari makes a great assessment of the human race in his book Sapiens, we have become lost souls running wild, disconnected from nature and spirituality with no sense of purpose – technology has brought us to a precipice and the future looks bleak

“Life is a mirror and will reflect back to the thinker what he thinks into it.” — Ernest Holmes
—————-
Ernest Holmes, eh.
I got a quote from a guy on the other side of the equation:
“If you stare into the abyss long enough, the abyss will stare back”
Nietsche

here’s another good one for dour Doug.

I was in darkness, but I took three steps and found myself in paradise. The first step was a good thought, the second, a good word; and the third, a good deed.
-Nietsche

#88 JSS on 03.25.21 at 5:52 pm

Tough day for AB Premier Kenny. Wonder what his next steps are

#89 Flop... on 03.25.21 at 5:53 pm

Mrs Flop likes to clean.

I think she has a bit of OECD…

M46BC

———————————————————————

Here’s How the U.S. Tax System Compares to Other Developed Countries.

“What would it mean to have a fair tax system? Would individuals pay more than companies? And would people pay more taxes through consumption, or when they earn an income? This visualization contains a snapshot of different tax categories for OECD member countries, demonstrating how there are lots of different ways to raise revenue.

* The U.S. tax system generates the most money in the world ($5.2T), and individuals shoulder a disproportionate burden of that total (41.5%) compared to other OECD countries.

* Social insurance and consumption taxes contribute a higher share of tax revenue for other OECD countries than the U.S. (24.9% OECD average vs. 17.6% in the U.S.).

* Companies pay far less in taxes in the U.S. (3.9%) compared to other countries, like Japan (12.9%) or Australia (19.1%).

* Consumption taxes, like the Value-added Tax (VAT), make up a third of total tax revenue for OECD countries, but this is usually passed to consumers through higher prices.”

Top 10 Countries With the Highest Tax Revenues
Country Total Tax Revenue (2019)

1. United States $5.2T

2. Japan* $1.6T

3. Germany $1.5T

4. France $1.2T

5. United Kingdom $933B

6. Italy $849B

7. Canada $581B

8. Spain $482B

9. Korea $450B

10. Australia* $417

https://howmuch.net/articles/oecd-total-tax-revenue-by-member-countries

#90 leebow on 03.25.21 at 6:02 pm

#76 Grasshopper

Do you support taxing idiots?

#91 -=withwings=- on 03.25.21 at 6:03 pm

“Should the feds act? “Yes,” it answers.”

Because RBC has no way to stop lending, they just cant say no its like impossible or something. The banks could stop taking ridiculous comps. The banks could start doing stronger underwriting. They could stop accepting downpayment loans. They could do lots of things, but claim to be powerless and need government intervention to act?

#92 Sunny Daze on 03.25.21 at 6:06 pm

Capital gains tax would demolish housing. Stop it in its tracks and then run it over. So can’t happen.

Half the lending isn’t done by the big six. Nobody has a clue how much exposure there might be to any price decline. I’m pretty sure the median for mortgage renewal is now under 3 years so things might turn quickly with any small price control measure.

I really don’t think anything can be done without a lot of carnage. They backed off rates in 2018 because just one little point caused all kinds of damage.

But it will be fun to see people argue about it. Actually it’s kind of sad.

#93 willworkforpickles on 03.25.21 at 6:07 pm

Inflation along with real growth is healthy inflation.
Without real growth inflation is destructive.
Inflation isn’t the only driver nor will be moving ahead now for rising interest rates.

#94 KLNR on 03.25.21 at 6:10 pm

@#66 Faron on 03.25.21 at 5:03 pm
@ IHCTD9:

Tools question if you’ll suffer it.

As a newish owner of a mouldy bung(alow), I have need for better power tools. I’ve been living with cheap and/or second hand corded tools and am looking at cordless.

I’m tempted by RIGID’s offerings, but wondering if it’s worth it to splash out on DeWalt or Milwaukee? Looking brushless and these are going to get a typical handy homeowner’s level of use. Bathroom reno is in the queue (a need not a want BTW), may convert the garage to a suite somewhere down the line.

Thanks in advance.

recently bought several milwaukee tools off facebook marketplace for a fraction of what they cost new.

#95 binky barnes on 03.25.21 at 6:23 pm

Will Justin man up? Of course he will, Garth. He is the Prime Minister Prime Minister. He will know exactly what to do (I heard that world leaders often seek his counsel, and that Ms. Merkel, in particular, relies on his wisdom).

BTW, I need a word that rhymes with ‘infallible’ for my ode to the PM PM.

BB

#96 ogdoad on 03.25.21 at 6:25 pm

O.a.n. Garth, I know of people who have received honorary degrees for volunteer services less than what your team offer on this blog. Policy, finance, humor, advice, psychology, behavior – pressing that release button must give you something a little more powerful than a deposit or, Gott bewahre , a shot of vodka.

Anyway, enough of that. Hey, I think I may buy shares in the Mississippi Company…I hear its going to the moon!

Og

#97 Pylot Project on 03.25.21 at 6:29 pm

#66 Faron on 03.25.21 at 5:03 pm

My two-bits. Take a look at Metabo HPT (aka Hitachi). They don’t have the product line selection of DeWalt (aka Black & Decker), Makita or Milwaukee but they are a solid choice.

If you want to take the tool with you to your grave… Festool.

For what it’s worth, Techtronic Industries, which owns Milwaukee, also owns Ryobi.

=====

I’ve been singing this old Depeche Mode song in my head when ever I read stories of this Real Estate nonsense.

“The grabbing hands, grab all they can. Everything counts in large amounts.”

#98 earthboundmisfit on 03.25.21 at 6:37 pm

Re: The Dog Photo
There’s about as much Shepherd in that dog as there is Windsor blood in Prince Harry, the whipped ginger of dubious lineage with the whiney, bad actress wife. That lovely lady is a Golden Retriever, the most beautiful of all canines.

#99 Hurtin' Albertan on 03.25.21 at 6:42 pm

We could have been largely free of covid by now, but Canada’s worst governments have failed us and we are now about to be overtaken by a 3rd wave of covid misery:

https://thetyee.ca/Analysis/2021/03/25/We-Could-Have-Been-Largely-Free-Pandemic-By-Now/

#100 Sail Away on 03.25.21 at 6:44 pm

#70 Doug t on 03.25.21 at 5:19 pm
#63 sail away

Speak for yourself; my life is greatly fulfilling and has much purpose: industry domination, hunting, money.

———-

Bully for you – you get a gold star when you leave this rock

———-

No star needed. More like this:

“I want to be thoroughly used up when I die, for the harder I work, the more I live. I rejoice in life for its own sake. Life is no ‘brief candle’ to me. It is sort of a splendid torch which I have a hold of for the moment, and I want to make it burn as brightly as possible before handing it over to future generations.”

-George Bernard Shaw

#101 Linda on 03.25.21 at 6:46 pm

As noted, for many homeowners the house is effectively their only retirement asset. Of course in order to cash in the property must either be sold, used to obtain $ via a HELOC/reverse mortgage or rented out to someone who is willing to pay enough in rent to fund the owners retirement lifestyle. However this blog has noted that many landlords are effectively supporting their tenants lifestyle, not the other way around. If folks are already ‘cashing in’ via a reverse mortgage or HELOC, selling up could possibly leave them homeless & still without sufficient funds to replace working income. Now throw in a capital gains tax. Rich on paper, broke in reality. What a deal.

#102 Grasswhopper on 03.25.21 at 6:48 pm

#76 Grasshopper

You forget that parents already pay more tax on bigger homes to house them, bigger cars to transport them, food to feed them, and incomes to pay for it all.

If Sox’s woke schooling system works, those kids will produce big time. That or throw cocktails at federal buildings. My eldest is in grade six and has only learnt participation so far – row row row the boat gently down the stream. What could possibly go wrong. Lol.

#103 You're all wrong on 03.25.21 at 6:51 pm

A mortgage is one of the few ways to force people to “invest” for their futures. Although Garth continues to fight it, there’s no doubt that for 99%, homes will fund retirement. It’s that simple that people would rather dine at restaurants, go on vacation, buy depreciating assets and so much more rather than putting money away for retirement in tax shelters. Just saying.

#104 wallflower on 03.25.21 at 6:56 pm

Is it possible you are paying the 7 year old?
If so, I recommend reporting this to CRA.

Re
#57 Leprechaun on 03.25.21 at 4:38 pm
I rent a house that is in there 7 year old daughter’s name.

#105 Steven Rowlandson on 03.25.21 at 6:56 pm

“Too many people is bad for the planet.”

Is someone advocating genocide? I do believe they are.
This price inflation creating conditions of life causing the destruction of my people via habitat deprivation and prevention of families is bad enough. What new and depraved genocidal schemes are they devising?

#106 Chase them out on 03.25.21 at 6:58 pm

Seniors need to be chased out of their big homes close to the city. Young families travel for hours to get to/from work in the city, while retired seniors sit on their asses and occupy 3,000 sq ft homes within throwing distance of where they don’t work.

We are a family of 5 in 1,800 sq ft … so 360 each. Most seniors around us are living in homes over 3,000 sq ft or 1,500 each. Time to tax their asses out of these homes.

WFH has changed the game for now. But it will return.

#107 TS on 03.25.21 at 7:00 pm

Garth,

House in the ottawa valley (Arnprior Area) went for $110,000 over asking.

Only one bidder on the house unfortunately

How much would that be at retirement in a diverse portfolio for a young couple who just spent $110,000 biding against nobody? :D

#108 Man of the cloth on 03.25.21 at 7:04 pm

My SIL works for a real estate lawyer just north of TO, in the 905. They are usually very busy closing deals at the end of each month. Right now, she says the office is dead.
Could be few listings. Could be the wacky prices. Perhaps buyer fatigue is finally setting in. Increasing rates? All of the above? Yes, all real estate is local, but, maybe this is a sign we have reached the top around the GTA, and, the spring won’t be as busy as predicted.

#109 Ustabe on 03.25.21 at 7:14 pm

@ #66 Faron on 03.25.21 at 5:03 pm

Prior to retirement my brother and I held a few rental properties in Calgary. That got big enough that we had a do it all handyman type on call. He was a master at keeping things in good order be it replacing a door or renovating studs out on a bathroom.

His cordless tools of choice were Panasonic. My brother was a Dewalt guy, I have a homeowner compliment of the Home Depot stuff….Ryobi.

So having used all three over the years I’d go Panasonic in an instant if I was to be starting over fresh.

Our current guy uses Rigid, he likes them. Pro carpenter next door uses Milwaukee.

#110 Shirl Clarts on 03.25.21 at 7:17 pm

I think it’s worse than 2016 this time…

https://bc.ctvnews.ca/red-hot-real-estate-market-sees-langley-b-c-home-sell-for-half-million-over-asking-1.5361284

#111 Sara on 03.25.21 at 7:18 pm

#4 Josh in Calgary on 03.25.21 at 2:49 pm
“It [capital gains tax on my principle residence] should be phased out after a certain period of owning. ”

===================
Ditto my ETFs then.

#112 crowdedelevatorfartz on 03.25.21 at 7:26 pm

Wanna wipe out the flippers and spec’ers?

Your 1st home sale will be tax free.
All other homes you buy and sell after that….

A Capital Gains tax.

It would make people think long and hard about buying AND selling.

Canada’s real estate porn problem solved.

#113 Sunny Daze on 03.25.21 at 7:27 pm

Gas $1.16 today. Even with the Suez mishap and Middle East nonsense.

Inflation talk is disappearing faster than TP at Costco during a pandemic.

The productive world is gonna make us work through this.

#114 Sara on 03.25.21 at 7:30 pm

#32 Classical Liberal Millennial on 03.25.21 at 3:42 pm
“We are not flippers. We are not speckers. Why should we be dinged when we sell? This should be a last resort.”

I don’t flip or speculate with my ETFs. Why should I be dinged when I sell?

Why is it OK to tax one form of gain (pretty much the only opportunity for gain available to renters), but not the other?

#115 Yuus bin Haad on 03.25.21 at 7:30 pm

I was talking with one of Chrystia’s aids who tittered, “The thinking was referring to it as ‘capital gains’ would trigger a rebellion, so we brainstormed and came up with the ‘speculation’ label.”

#116 Faron on 03.25.21 at 7:31 pm

#94 KLNR on 03.25.21 at 6:10 pm
#109 Ustabe on 03.25.21 at 7:14 pm
#73 Wrk.dover on 03.25.21 at 5:24 pm
@ #66 Faron on 03.25.21 at 5:03 pm

Thanks for the input guys. Hadn’t considered Panasonic. I’ve perused the orange store, but will check the others.

Just learned that Milwaukee, RIGID and Ryobi are all owned by the same parent.

Wrk.dover, good advice on trimming cords and using a locking extension. I’ve noticed that the nicer tools have short cords. I mean, you’re always going to be using an extension.

#117 Ottawan on 03.25.21 at 7:31 pm

CMHC’s national headquarters(building A) was built to potentially serve as a hospital in case of attack,

#118 FreeBird on 03.25.21 at 7:35 pm

Interesting…

https://lakesuperiornews.com/Health/liberal-government-busted-paying-people-to-praise-hajdus-department

Good news:

https://medicalxpress.com/news/2021-03-shot-covid-vaccine-previously-infected.html

#119 Nonplused on 03.25.21 at 7:36 pm

#66 Faron on 03.25.21 at 5:03 pm
@ IHCTD9:

Tools question if you’ll suffer it.

As a newish owner of a mouldy bung(alow), I have need for better power tools. I’ve been living with cheap and/or second hand corded tools and am looking at cordless.

I’m tempted by RIGID’s offerings, but wondering if it’s worth it to splash out on DeWalt or Milwaukee? Looking brushless and these are going to get a typical handy homeowner’s level of use. Bathroom reno is in the queue (a need not a want BTW), may convert the garage to a suite somewhere down the line.

Thanks in advance.

—————————–

A cordless drill is a must have, but most homeowners do not use the other tools enough to justify replacing corded tools if they already have them. (With the exception of lawn mowers and trimmers.)

I have a “Rona” branded cordless drill and it has been great. But after 10 years the batteries no longer hold a charge and of course replacements are not available but would cost as much as a new drill even if they were. Therefor I would look at RIGID because I believe they have free replacement batteries for life. (Read the fine print though.)

For home owners that don’t have any tools, a multi-tool “kit” that runs on the same set of batteries is probably an economic way to go, rather than buying corded tools. But if you already have a skill saw, ask yourself how many times you really use it before splurging on a cordless replacement.

For tradesmen, I understand a full set of cordless tools is considered indispensable. But they use them every day and often away from power.

#120 Cheese on 03.25.21 at 7:37 pm

I’ve been looking at tents and vans, perhaps a truck camper. That is the only housing those of us in the lower income bracket can look forward to.

Go on youtube and search for van dwelling or other ‘alternative lifestyles’, its become quite the phenomenon. I suspect its an artifact of the times.

#121 the Jaguar on 03.25.21 at 7:40 pm

What a photo. That beautiful dog’s expression says it all. Dignity, virtue, loyalty, and grace under pressure.

No wonder we feel humble in their presence.

#122 FreeBird on 03.25.21 at 7:43 pm

More on remote learning for Ont schools. Funding deal for TVO when resources already exist in schools?

https://www.google.ca/amp/s/globalnews.ca/news/7718634/ontario-schools-covid-remote-learning-permanent/amp/

#123 KNOW IT ALL on 03.25.21 at 7:43 pm

DELETED

#124 Out Of Work CEO, Will Travel on 03.25.21 at 7:43 pm

It is better PR for Royal Bank to alert the bank client and/or mortgage buyer before they contact the bank there is a limit to the amount of mortgage based on the appraisal. If Ms. Smith in Lindsay shows up at the local Royal Bank asking for a mortgage on a bungalow that sold last year for $229,000 and now Ms. Smith needs $600,000 for the same run of the mill 1,500 sq.ft. The appraisals are the screamers in the room.

#125 Ponzius Pilatus on 03.25.21 at 7:45 pm

#43 Faron 

That said, there’s a Ford Escape in the family that is well loved and has served reliably. So, times have probably changed.
——————
All I can say in shame that I actually owned a Ford Pinto.
And I test drove a Chevelle, once.
You needed Arnie’s muscles to steer that sucker.
And that was it for me.
Only German and Japanese since then.
Audi Q5 right now.
Bucket list:
https://openroadaudi.com/new-cars/2021-audi-e-tron-technik/e8293

#126 Ponzius Pilatus on 03.25.21 at 7:54 pm

#28 IHCTD9 on 03.25.21 at 3:30 pm
“But I hear a national speculation tax based on length of ownership is in play. That might be enough.”
____

If Trudeau does this, and does it properly (IE – Howitzer in the face level financial pain for quick flippers 5 years and under), I promise I will come on here and post something nice about him.
—————-
But would you vote for him?
Speculators are annoying me too.
Other pet peeves are Birth Tourism and DualCitizenship.
Make up your fricking mind for which country you wanna swear allegiance to!

#127 IHCTD9 on 03.25.21 at 7:59 pm

#66 Faron on 03.25.21 at 5:03 pm
@ IHCTD9:

Tools question if you’ll suffer it.

As a newish owner of a mouldy bung(alow), I have need for better power tools. I’ve been living with cheap and/or second hand corded tools and am looking at cordless.

I’m tempted by RIGID’s offerings, but wondering if it’s worth it to splash out on DeWalt or Milwaukee? Looking brushless and these are going to get a typical handy homeowner’s level of use. Bathroom reno is in the queue (a need not a want BTW), may convert the garage to a suite somewhere down the line.

Thanks in advance.
—- –

I have DeWalt, a 20 volt impact driver and drill, and a corded circular saw. These get the most use by far, and I’d only go with the good stuff for these three tools.

I also have a no name Walmart corded jigsaw, a must have tool; but not needed very often. These are hard to overload, so cheapie is ok for this one. Also a 25 year old corded Craftsman sawzall, good quality, good price, these are hard to overload too, I’d say middle of the road is good here – it tends to get used a lot all in one shot, then sit for years.

Definitely get an impact driver for screws. The one I have is the first I’ve ever owned and it rocks compared to a drill. Hex collet makes bit and drill changes a snap, and never slips. You can get a great kit from BOSCH with all the common hex drive bits/drills in it and a nice case. The impact effect will drive a 3” deck screw right through a 2×6, power galore even though it’s tiny and super light – awesome. If there is even the slightest possibility of a deck build in your future, just get it now, indispensable!

#128 Linda on 03.25.21 at 8:12 pm

#114 ‘Sara’ – it will all depend on whether a capital gains tax is imposed on the sale of a principle residence & what if any tax write-offs accompany the new tax. With your ETF or other investment funds, yes, one may pay capital gains upon the sale. However, if the investment has lost value one then can deduct the loss from ones tax return. For long term owners who may no longer hold a mortgage there must be an exemption, because it would be unfair to tax the sale of their property when they have never been able to deduct any of the costs of purchasing or maintaining it.

#129 TurnerNation on 03.25.21 at 8:16 pm

Careful…farm animals (our Food source) and pets may become a target. Any excuse for the new laws, or a cull.
How diabolical is the New System.

https://www.sciencemag.org/news/2021/03/major-coronavirus-variant-found-pets-first-time

——————————

-C’mon don’t tell me that our rulers do not have a clear plan & timeline to take out what’s left in the Former First World Countries – finances and culture.
“Provinces prepare for 3rd wave of COVID-19 driven by variants”

**Footage of the massive internment camps errected at Sunnybrook hospital. It’s here. Note the individual units/cells:
https://www.youtube.com/watch?v=CbL_cBlAsVI
COVID-19 Quarantine camp at Sunnybrook Hospital in Toronto, Canada pt 2
https://www.youtube.com/watch?v=4wsbrAQZaXc

-Ooh look more “voluntary” things.

“Health Minister Patty Hajdu on Tuesday said the government would commit an additional $23.7 million towards operating isolation sites in communities across Ontario, including Toronto, Peel Region, York Region and Durham.
These sites allow people who are diagnosed with COVID-19, or may have been exposed to the virus, and who are faced with crowded living conditions or resource constraints to voluntary self-isolate.”
———————————

– Supply Chain: If the Suez and Panama canals became blocked it would throw the world into (more) chaos. Half way there. Classic WW3 action, cut off the supply lines of your enemy (hint we are the enemy in this one)

National Kommunist Quotas:

Supreme Court rules Ottawa’s carbon tax is constitutional
In 6-3 decision, top court finds federal government can impose nationwide pricing standards

#130 IHCTD9 on 03.25.21 at 8:17 pm

#119 Nonplused on 03.25.21 at 7:36 pm
#66 Faron on 03.25.21 at 5:03 pm
@ IHCTD9:

—————————–

A cordless drill is a must have, but most homeowners do not use the other tools enough to justify replacing corded tools if they already have them. (With the exception of lawn mowers and trimmers.)

I have a “Rona” branded cordless drill and it has been great. But after 10 years the batteries no longer hold a charge and of course replacements are not available but would cost as much as a new drill even if they were. Therefor I would look at RIGID because I believe they have free replacement batteries for life. (Read the fine print though.)

For home owners that don’t have any tools, a multi-tool “kit” that runs on the same set of batteries is probably an economic way to go, rather than buying corded tools. But if you already have a skill saw, ask yourself how many times you really use it before splurging on a cordless replacement.

For tradesmen, I understand a full set of cordless tools is considered indispensable. But they use them every day and often away from power.
—- – ——-

I second the “kit” option as well. The drill and impact I have are a kit with a charger and two batteries. I bought a 3rd battery, and even driving deck boards rapid fire, you’ll never run out of juice if you keep cycling the batteries onto the charger once they tap out.

I had a mastercraft cordless drill before the DeWalt, got a lot of years out of it. Eventually one of the batteries became weak after a multi-day sub-zero vacation in my truck, and no new batteries were available. It didn’t owe me anything though.

The DeWalt stuff is much better, and it really wasn’t all that expensive IIRC.

#131 Doug t on 03.25.21 at 8:18 pm

#100 sail away

Don’t you get nervous way up there on that pedestal you have yourself on – all you seem to come here for is talking about yourself and looking for a round of applause – your ego is showing – perhaps you could take a note from your handle and “sail away”

#132 Garfield on 03.25.21 at 8:20 pm

My kind of dog this Madison…too lazy to look for her owners, expecting them to return with a lasagna instead.

Amazing that Madison could smell anything to point it home after it all burned up in crazy heat to beyond recognition. Oh and smoke. Golden coat stayed so clean, even though only us cats lick ourselves clean.

#133 GreaterFool on 03.25.21 at 8:24 pm

Heard EU has export control on vaccine. I guess the only power Canada has is to offer them some houses in downtown Toronto and Vancouver. Not free though, just we Canadians promise that we will not place offers, they are the only one so they can sit down and negotiate with the sellers.

This is a huge favor to them!!!

#134 Doug t on 03.25.21 at 8:25 pm

#87 KLNR
“Think of how stupid the average person is, and realize half of them are stupider than that.”
― George Carlin

Lol “dour Doug”

#135 NoName on 03.25.21 at 8:27 pm

@faraon

For around house store brand tools are good enough, even if you do whole floor renovation at a time.

https://youtu.be/e2szflBzicM

#136 crowdedelevatorfartz on 03.25.21 at 8:31 pm

@#107 TS
“House in the ottawa valley (Arnprior Area) went for $110,000 over asking.”

++++

O..M…G…
Arnprior.

I decided to seek “fame and fortune” out west with a co worker/ buddy of mine in 1980.
Calgary was the goal!
Drove nonstop from Halifax to Arnprior Ontario the first day.
Pulled in to a small Motel just off the highway at 12 midnite.
The Office was closed but the room next to the office was unlocked with the lights on and no luggage. 2 Beds and linen untouched. Perfect.
Weird but ok.
We assumed that we were supposed to check in the room and pay in the morning.
Backed in to the parking sport directly in front of the room.
Went in, had a hot shower and crashed.

4am…. dead asleep……someone puts a key in the door and tries to open the door. Boom. WTF?
. I had put the chain on the door and that stopped them.
We immediately woke up.
5 drunk guys outside are arguing with each other , “THIS is the room! No its THAT room!”
Down the entire length of the motel they went trying their key on every door banging their fists on every door.
I said to my buddy Frank, “WE’RE NOT SUPPOSED TO BE HERE!”
Fastest packing job i ever did.
Opened the door and reached out and unlocked the trunk.
Toosed our crap in the trunk slammed it shut and scrambled into the car….
Left the room door open, lights on, wet towels in the bathroom, beds disheveled, …. like a movie.
Started the car as two of the guys were hammering on the Motel Nite office door…..
One guy looked at us with the dawning realization of what had happened and started yelling for his friends as we tore off out of the parking lot and took the highway on ramp….
Drove for another 2 hours and pulled in to a truck stop for breakfast…

Arnprior…. free room and board….if you’re fast enough.

#137 Ken on 03.25.21 at 8:31 pm

Clearly, this out of control real estate price escalation has to be attributed to Trumps past policies.

There is nobody else to blame.

Anyone with orange hair and a rebellious (pre-censure Twitter feed) is the only conceivable reason Canadians would participate in record setting bidding wars.

#138 Rosco on 03.25.21 at 8:34 pm

Financial people trying to manipulate the business cycle.
Health people trying to manipulate my immune system.
Tax people trying to redistribute my money.
Climate people trying to tax the natural Carbon Cycle which is a closed system with nothing produced or lost but only changing from gaseous(CO2) to solid matter (pretty much everything) back to gas back to solid in a never ending cycle of naturalness.
The Water Cycle works the same way with evaporated water returning to earth as rain with nothing lost or gained in a closed system.
These are all fact checked facts by someone who gives a fact.

#139 Shortymac on 03.25.21 at 8:34 pm

My thoughts to fix this mess:

1) CMHC is not available on houses over 500k, condos over 250k.

2) Massive house sales audit, as I suspect many people are claiming a flip as their primary residence for tax free gains. I’ve seen this happen in my neighborhood a lot, sit on an empty property for 2 years, knock it down, mcmansion, sell.

I have 2 houses on my street right now that are in the “McMansion Building” phase, and at least 1 that I suspect is going to be an empty home. The family living there moved out, but no one has moved in. This is rexdale, far from a posh neighborhood.

3) Empty houses reporting service, see above.

4) Raise the minimum requirement for mortgages, especially for investment and second properties. I think NZ has it right in this regard.

#140 Northshore guy on 03.25.21 at 8:35 pm

3480 Sunset Blvd, north Vancouver
Listed for 1.9 and sold for 2.4
Only half a million over asking.
A lot of people will regret buying in this market. What has been happening in last 2 months is simply not sustainable..

#141 Faron on 03.25.21 at 8:38 pm

#119 Nonplused on 03.25.21 at 7:36 pm

#66 Faron on 03.25.21 at 5:03 pm

Therefor I would look at RIGID because I believe they have free replacement batteries for life. (Read the fine print though.)

Yeah, it seems like a good deal. Home Depot has buy a tool get a battery kit deals right now. Good points about replacing corded tools.

#125 Ponzius Pilatus on 03.25.21 at 7:45 pm

My first car was an ’83 Subaru. No power steering. Occasionally the tire pressure would get a bit low. That was fun.

Yeah, the e-tron is sick looking. Volkswagon group is setting up to swallow the electric car market. I could see getting an ID.4 (Audi is out of my price range :-) ). Curious to see what Toyota comes out with with their solid state battery tech (if it can be mass produced).

#142 Drinking on 03.25.21 at 8:43 pm

Bankers and selfish individuals are to blame for all this; The Big Short on top of a Pandemic and record debt will make this next crash very interesting; love my cash!

#143 N on 03.25.21 at 8:44 pm

Should the feds act? NO…. Let the markets decide. The Feds job is to finance and incentivize first time home-buyers. It crossed it’s bounds a long time ago.

“We fork over 65% more than American families for shelter.”
Most people do not realize that we earn almost 50% less than most Americans after both direct and indirect taxation is taken into account. When that’s taken into account, it’s like we’re paying almost 140% more for Shelter.

#144 Northshore guy on 03.25.21 at 8:47 pm

Very nice of rbc to ask feds to do something.
Meanwhile nobody is forcing them to hand out mortgages at these insane levels. There are several sales recently which are a million over assessed values and way over asking. Why don’t they simply reject such applications?
Oh right because they don’t want to lose market share due to competition. Right. Silly me.
Banks and CMHC are the problem, they can’t control themselves and so they think just doing the talk will make them look like good guys.

#145 Faron on 03.25.21 at 8:49 pm

#130 IHCTD9 on 03.25.21 at 8:17 pm

et al.

Thanks for the input! Thanks for hosting Garth.

#146 Sara on 03.25.21 at 8:50 pm

@128 Linda,

I was speaking in generalities. Many home owners get all up in arms at the thought of any sort of capital gains tax on their principle residence while all other capital gains (what’s left that is available to renters) are taxed. There is a basic principle of unfairness operating here, leading to much societal divide in recent years, which is what I was trying to draw attention to in my comments. The precise details (exemptions, expense deductions, etc) would need to be considered of course.

#147 Amok on 03.25.21 at 8:51 pm

#88
“Tough day for AB Premier Kenny. Wonder what his next steps are“

Hopefully his next steps are to step down.
Kenny is one of the worst leaders in Canadian history.

#148 Drill Baby Drill on 03.25.21 at 8:52 pm

CMHC is the key to much of this. If the bank had to actually bear the weight of the mortgage risk on a home then lending rules would tighten right up very quickly. Then down goes house prices. Why should the Canadian tax payer be the first in line at risk of a failed mortgage?

#149 Grasshopper on 03.25.21 at 9:02 pm

#90 leebow
#76 Grasshopper

Do you support taxing idiots?

Did you come up with that idea by yourself? It is a thoughtful idea, but I doubt your suggestion will help make housing more affordable or reduce government spending.

#150 Calguy on 03.25.21 at 9:15 pm

Maybe the Feds will finally provide some relief to our airlines in the budget. This is getting ridiculous. Germany gave almost 7 billion to Lufthansa. USA gave 48 billion to airlines last year We continue to see airlines from Mexico, Korea, Japan, China etc. Why are we having this from international airlines and ours are stuck?

Canadians are getting fed up! People have serious mental and physical illness with draconian measures so anyone like front line workers or people working in office can’t go on vacation because of the measures. Where are the rapid tests and reduce quarantine? This has been a terrible failure of the government and anytime you try to contact a local MP they don’t respond. Meanwhile many friends and relatives who are pilots, attendants, border agents are sitting around waiting. USA is open. They would never tolerate the restrictions placed on us. Yes I am concerned about Covid, but we need to move on and learn to live with this and get the economy going!

#151 Wrk.dover on 03.25.21 at 9:16 pm

#63 Sail Away on 03.25.21 at 4:57 pm
#21 Doug t on 03.25.21 at 3:19 pm

Harari thinks it’s the connection to nature? Maybe rudderless people should take up hunting, foraging and fishing. Or homestead like Wrk.dover.

—————————————–

As a way of life, it ain’t easy and it ain’t cheap, but the self reliance being paramount is satisfying, done right.

#152 Kurt on 03.25.21 at 9:17 pm

#66 Faron on 03.25.21 at 5:03 pm

I use Ryobi and Rigid drivers and impacts at work. The Ryobi are toys; love the Rigid; never used Milwaukee and given the performance of the Rigid, no real interest in doing so. Cheers!

#153 45north on 03.25.21 at 9:17 pm

As you say FOMO can end in a hurry.

Ryan Lewenza gives a chart of Home Sales. It shows national sales from 2007 to 2021. In 2020, monthly sales radically departed the 10-year moving average. What would it take for sales to drop below 10,000 a month? If home prices were insanely high coupled with no corresponding increase in income. Which is where we’re at right now.

We’re looking at an instant depression.

https://www.greaterfool.ca/2021/03/13/ive-made-a-huge-mistake/

#154 VladTor on 03.25.21 at 9:23 pm

Garth –> Two-thirds of people say the highest prices ever will only go up.
———–
It’s two-thirds a media problem . Folk just pumped this idea everyday from each TVs program or newspaper. Everyday I’m reading that prices will be higher next year min 5%. No explanation or analysis. And this madness will be at least until next election. If only media start telling true – next month will be panic!

#155 VladTor on 03.25.21 at 9:26 pm

Would be great to see video when this dog family returned.

#156 fishman on 03.25.21 at 9:27 pm

“Fishman, you’ll be a lot happier if you don’t play the victim card.” Thank you KLNR for taking the lead in Self Criticism Sessions. Pointing out my error of adopting one of the four pillars of Political Correctness. Victim Status? Such shame. And such an obvious Universal Truth. Adopting victim status makes one sad. I’m happier already that I am publicly confessing. I’ll beware the siren call of unhappiness from Relative Morality, the Tyranny of Secular Humanism & Multiculturalism too. I’ll meditate on the inner peace & happiness that comes from living in the first “post modern” nation. A nation with “no core identity, no mainstream”. Just all glorified “shared values”. I needed KLNR’s wisdom especially today. All I could think about was the Supreme Court decision this morning. That & my thirsty Clatterpillar demanding 6000 litres of diesel fuel whenever we stop for a drink. I give thanks to happy fellow travellers like Binky Barnes, Economystic, Grumpy (its an act) Garth, but most importantly, KLNR, for putting me back on the path of Happy, Happy.

#157 IHCTD9 on 03.25.21 at 9:28 pm

#126 Ponzius Pilatus on 03.25.21 at 7:54 pm
#28 IHCTD9 on 03.25.21 at 3:30 pm
“But I hear a national speculation tax based on length of ownership is in play. That might be enough.”
____

If Trudeau does this, and does it properly (IE – Howitzer in the face level financial pain for quick flippers 5 years and under), I promise I will come on here and post something nice about him.
—————-
But would you vote for him?
Speculators are annoying me too.
Other pet peeves are Birth Tourism and DualCitizenship.
Make up your fricking mind for which country you wanna swear allegiance to!
—- —

Maybe I would if he starts making decisions like this, and doing it such that it only has to be done once. Need an awfully lot more good decisions though to make up for the infinite number of bad ones he’s made to date though.

I don’t mind DC, but only if the other country is one we have financial and extradition treaties with. BT is already an issue, and if it’s not dealt with soon, it’ll be another housing bubble sized debacle courtesy of our can-kicking leadership(s).

#158 Wrk.dover on 03.25.21 at 9:29 pm

Another tool thing (you won’t find on line), use a sliding dimmer switch to power a duplex receptacle in a double round corner box. Plug any tool with brushes into this to ‘domesticate it’. You can slow a drywall screw gun to do cabinetry or drive deck screws with control, slow a side grinder wayyyy down when using a cup wire brush, and carve with a circular saw dragging it sideways held at an angle. And so on.

Housing price mess? Too big to fathom, which is why it gets ignored by the “leaders”. They don’t ‘get it’.

#159 Ms. Fomo on 03.25.21 at 9:30 pm

“ Inevitable. Nothing rises forever. ”

Wonder, how long is forever. Been patiently waiting the inevitable for last 15+ years :-(

#160 Ustabe on 03.25.21 at 9:34 pm

@ #70 Doug t on 03.25.21 at 5:19 pm

Narcissism is driven by insecurity. It presents as a grandiose sense of self but boiled down all it is is the narcissists coping with these insecurities by flexing. That makes others dislike them in the long run further aggravating the insecurities which leads to the vicious cycle of flexing behaviours.

A clinical psychologist would have a field day by following along here for a bit.

#161 KLNR on 03.25.21 at 9:37 pm

@#156 fishman on 03.25.21 at 9:27 pm
“Fishman, you’ll be a lot happier if you don’t play the victim card.” Thank you KLNR for taking the lead in Self Criticism Sessions. Pointing out my error of adopting one of the four pillars of Political Correctness. Victim Status? Such shame. And such an obvious Universal Truth. Adopting victim status makes one sad. I’m happier already that I am publicly confessing. I’ll beware the siren call of unhappiness from Relative Morality, the Tyranny of Secular Humanism & Multiculturalism too. I’ll meditate on the inner peace & happiness that comes from living in the first “post modern” nation. A nation with “no core identity, no mainstream”. Just all glorified “shared values”. I needed KLNR’s wisdom especially today. All I could think about was the Supreme Court decision this morning. That & my thirsty Clatterpillar demanding 6000 litres of diesel fuel whenever we stop for a drink. I give thanks to happy fellow travellers like Binky Barnes, Economystic, Grumpy (its an act) Garth, but most importantly, KLNR, for putting me back on the path of Happy, Happy.

no problem fishman.
good job turning that frown upside down.

#162 leebow on 03.25.21 at 9:48 pm

#149 Grasshopper

I got inspired by you. Man, when I saw your original post it was amazing. I totally spilled my wine. And then I thought well, kids have a chance to improve but idiots do not. Idiots are a lifelong drain on the system. Not every idiot is a Forrest Gump. I thought you’d like the idea.

#163 IHCTD9 on 03.25.21 at 9:54 pm

#136 crowdedelevatorfartz on 03.25.21 at 8:31 pm
@#107 TS
“House in the ottawa valley (Arnprior Area) went for $110,000 over asking.”

++++

O..M…G…
Arnprior.

I decided to seek “fame and fortune” out west with a co worker/ buddy of mine in 1980.
Calgary was the goal!
Drove nonstop from Halifax to Arnprior Ontario the first day.
——-

Haha! Good story!

Ms IH and I stopped at a Motel in NB just outside the PQ border on our honeymoon back in the 90’s. You might even know it, “The Rose Motel”. Back then it was a real dump, bed sheets full of holes, stains all over the place, B+W TV with a remote the size of a brick. Almost just slept on the floor. Scary. I don’t even want to know the shenanigans that went on in there…

They’ve obviously fixed the place up as it’s got 4.3/5 on Google reviews now!

#164 Stone on 03.25.21 at 9:55 pm

#147 Amok on 03.25.21 at 8:51 pm
#88
“Tough day for AB Premier Kenny. Wonder what his next steps are“

Hopefully his next steps are to step down.
Kenny is one of the worst leaders in Canadian history.

———

He’s a leader?

I thought he was just a clown in a clown suit making absurd, ignorant clown comments.

Anyone have a link indicating he’s actually a leader and not a clown?

#165 Stone on 03.25.21 at 9:59 pm

#160 Ustabe on 03.25.21 at 9:34 pm
@ #70 Doug t on 03.25.21 at 5:19 pm

Narcissism is driven by insecurity. It presents as a grandiose sense of self but boiled down all it is is the narcissists coping with these insecurities by flexing. That makes others dislike them in the long run further aggravating the insecurities which leads to the vicious cycle of flexing behaviours.

A clinical psychologist would have a field day by following along here for a bit.

———

That’s actually…the best post of the day.

And it explains so much.

#166 crowdedelevatorfartz on 03.25.21 at 10:13 pm

@#156 fishman

good one.

#167 Doug t on 03.25.21 at 10:22 pm

#Ustabe

Amen brother

“Dour Doug” out

#168 april on 03.25.21 at 10:24 pm

The greed has to be brought to an end. Yes, high time for capital tax on real estate plus other measures, including inheritance tax. NO one asked people to take on more dept than they could comfortably handle.

#169 cramar on 03.25.21 at 10:25 pm

What we need are human leaders like Madison. The world would be a much better place.

#170 april on 03.25.21 at 10:28 pm

#140 – It might have been listed under market value to set up a bidding war…. realty tricks and too many fools fall for it.

#171 Doug in London on 03.25.21 at 10:29 pm

Tax capital gains on principal residence? Well, it’s not about time but rather long, long, long, long overdue. The federal government, as well as provincial and territorial governments have run up INSANE levels of debt in the last year, including Ontari-owe where I live. It only makes sense to tax a place where a lot of money has been changing hands lately. I’ll be disappointed in this tax isn’t in the April 19 budget.

#172 glenn wood on 03.25.21 at 10:33 pm

RBC has a gigantic UNINSURED mortgage portfolio wherein most loans have “conservative” LTV(loan to value) ratios of 80% or less. When the pendulum changes direction RBC could become under-capitalized at which time RBC shares and their NVCC preferred shares take a dive of epic proportions. Not in Canada you say?

#173 Brian on 03.25.21 at 10:42 pm

‘Canadians need to know prices will not rise forever.’ Yes they will and a 5 percent correction/breather for 6 months doesn’t count. Writing from Australia where property ownership and belief is now firmly part of the Aussie DNA, you would be shunned, deported, laughed at and spat at for saying such a thing. Think I have followed the wrong herd and now it’s not FOMO, its Fear I have missed out.

#174 Lolo on 03.25.21 at 10:49 pm

“Everybody who buys in a bubble must sell.”

I know a couple who got convinced by their bank that they didn’t need to sell their home, and can carry it as a rental property, as well as buying a new one as principal residence. They had already done this once before, as well as having a property purposely bought for investment. So they will end up with 4 properties to finance. All OK’d, and actually encouraged by their bank.

#175 Two-thirds on 03.25.21 at 11:13 pm

“Of course, folks with financial portfolios are taxed every year on income received, pay HST on fees and capital gains tax on dispositions.”

Indeed, AND many will be quick to add, they also:

1) Can deduct interest on money borrowed to invest, unlike mortgage holders;

2) Can deduct the cost of fees from their taxes;

3) Can claim capital losses when selling, unlike house owners;

4) Don’t NEED a portfolio, unlike house owners, who NEED a place to live

Playing the “injustice card” of portfolio holders vs. mortgage/house owners will not go very far in T2’s class-envious Canada.

Of course, if houses were treated the same as other investments AND allowed all of the above deductions, that would could alleviate voters’ concerns with implementing capital gain taxes on RE.

Regardless, a capital gain tax on homes upon a sale would ultimately be paid by the buyer, so the most undeserving beneficiary would be the government!

Or perhaps spiteful owners will choose to reverse-mortgage the house instead of handing their capital gains to the government (that incidentally, did nothing to earn said gains either…)

LOL. This will not end well, but will certainly be entertaining to watch, in a sad, masochistic way. We are all screwed fiscally either way, thanks to T2’s debt-fueled progressiveness and the upcoming taxation of anything and everything above what government-stipulated “middle class” should have.

Socialism with Kanadian characteristics, minus the capitalist-fueled economic growth?

Ouch!

Oh, Kanada!

:(

#176 Robert Ash on 03.25.21 at 11:40 pm

Try a Random Act of Kindness !
Loved the Arnprior Story, and I do give a Fact… ha ha!

#177 Charles Ramos on 03.25.21 at 11:43 pm

Re: cordless tools

I have a full suite of Milwaukee M18 Fuel cordless tools with 6 batteries and just love them- they come everywhere from sailing to tipi tenting to volunteer playground builds to, of course, home construction. A couple of sawhorses, screws, and a pile of lumber at the remote hunting camp gives full self-sufficiency. We also use the drill to run the homemade rubber-fingered ‘mother plucker’ on the birds. Man, do those feathers fly!

Make sure to burn or etch your name into every piece, including batteries because they tend to walk away at big group-effort jobs.

#178 Sail Away on 03.26.21 at 12:04 am

#160 Ustabe on 03.25.21 at 9:34 pm
@ #70 Doug t on 03.25.21 at 5:19 pm

Narcissism is driven by insecurity…

————

Hey guys, this isn’t a contest. Nobody wins by slinging mud.

And don’t slag old G. B. Shaw, for crying out loud. The guy’s been dead for 70 years! A few more from the man:

‘We don’t stop playing because we grow old; we grow old because we stop playing.’

‘A life spent making mistakes is not only more honorable, but more useful than a life spent doing nothing.’

‘Some men see things as they are and ask why. Others dream things that never were and ask why not.’

‘Beware of false knowledge; it is more dangerous than ignorance.’

#179 morrey on 03.26.21 at 12:07 am

Capital gains on houses will not happen. Perhaps on homes bought and sold within a five year span, but not a blanket tax. It would be a political blood bath if any Political Party tried to implement that tax.

#180 Victor V on 03.26.21 at 12:44 am

Would you vote for a party that imposes the capital gains tax on principal residences?

https://twitter.com/bnnbloomberg/status/1375059430342066178?s=21

#181 Cowtown Cowboy on 03.26.21 at 1:04 am

B&D portfolio up 8.40% ytd …yum yum yum

#182 Diharv on 03.26.21 at 1:15 am

Lenders and government for years have been speaking out of both sides of their mouths. They say there is a problem, yet do nothing to curb it and do everything to enable it to become even worse. If TD dropped it’s lending rate tomorrow, RBC would follow suit, right after wailing about something needs to be done. It’s just lip service to feign concern .

#183 Nonplused on 03.26.21 at 2:31 am

#141 Faron on 03.25.21 at 8:38 pm

Yeah, it seems like a good deal. Home Depot has buy a tool get a battery kit deals right now. Good points about replacing corded tools.

—————————

Ya, that’s great having 2 batteries is always great so you can use one while the other charges. But remember they will all be dead in ten years whether you use them or not. Batteries of all sorts break down for two reasons: Number of cycles, and age. Even a Duracell “copper top” only lasts 7 years or so on the shelf, and then the acid starts leaking out even if it has never been used.

This is one of the major problems with electric/hybrid cars. They are great for taxi drivers, especially the hybrids, but for your average person the mpb (mileage per battery) is not great. The batteries will up and die after ten years even if the car hardly leaves the garage. Better to get an ICB Corolla. Same problem for cordless tools. Tradesmen will get their cycles out of the battery, but if all you are doing is hanging the odd picture, you won’t.

Batteries are “use it or lose it”, rechargeable or not.

#184 Nonplused on 03.26.21 at 2:53 am

#111 Sara on 03.25.21 at 7:18 pm
#4 Josh in Calgary on 03.25.21 at 2:49 pm
“It [capital gains tax on my principle residence] should be phased out after a certain period of owning. ”

===================
Ditto my ETFs then.

———————————–

Well, no. Houses are not ETFs. ETFs are for profit. Houses are a place to live. Houses are not money.

Flippers and landlords, etc., I favor taxing but they already do. What is being proposed is to tax anyone who owns their own home and lives in it as if they were a flipper or landlord. I’d maybe be ok with that if I could write off the depreciation of my car against it. I need the car to live there. And mortgage interest and maintenance and improvements.

Nobody makes after expenses and after inflation profits on owning a home, unless they live in YYZ or YVR. And even then I am not so sure.

#185 Irwin on 03.26.21 at 4:50 am

“Will Justin man up?”

Phttt – are polar bears dying by the hundreds?

Is AstraZeneca safe?

There is only one answer for all three, and it doesn’t start with “Y”.

#186 under the radar on 03.26.21 at 5:22 am

Fairy dust mortgage money and no inventory fueling this wild fire.
Baffles me how cash poor , people are making themselves. These monster mortgages will haunt people like a wicked hangover. They last a long time and are full of regret.

#187 Fortune500 on 03.26.21 at 6:19 am

Yes, Canadians should be paying some form of capital gains tax on their principal homes. At least as long as they are being used as ‘retirement’ vehicles. Why should people who bought a decade ago enjoy tax free gains, while younger Canadians who may be forced to now rent for their adult years in this ‘new Canada’ pay capital gains and taxes on their ‘retirement’ vehicles (ie. stocks/bonds)?

Houses were supposed to be for shelter. They are either investments or shelter, but they can’t be both without having some form of capitals gains or investment related tax applied. Seems pretty clear.

#188 Rod on 03.26.21 at 6:28 am

Here’s a radical idea. Mortgage rates in the past were much higher, perhaps averaging 5% (??) since the 90’s.

So let people pay the 2% they do now PLUS the difference up to that past average (3%) as tax. As the rates rise the tax % drops.

Solves both real estate issue and the tax revenue problem.

#189 BillyBob on 03.26.21 at 7:00 am

#121 the Jaguar on 03.25.21 at 7:40 pm
What a photo. That beautiful dog’s expression says it all. Dignity, virtue, loyalty, and grace under pressure.

No wonder we feel humble in their presence.

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

Agreed. It’s amazing how certain breeds can convey such regal traits. Shepherds, collies, labs. While other breeds, chihuahuas, basset hounds…pets. Something for everyone, I suppose.

I think you mentioned awhile back you were planning a trip to St. Petersburg? I have been a few times, only for a couple nights at a time but I cannot recommend it highly enough if the opportunity presents. Lives up to everything one might imagine from Russian literature. The contrast with Moscow completely blew my mind. (Although Moscow is seriously cool in it’s own way.)

And funnily enough, we just finished watching “The Romanoffs” mini-series (NF). Recommend for a stylish fictional what-if take on the Romanov legend if that’s your thing.

Enjoy the planning, there are definitely rumblings of more international travel opening. I just don’t know if Canada will be able to participate as soon with the slow rate of vaccination. The best bet may be to travel to the US and enjoy a mini-vacay there if you need the shots. Flights are cheaper as well.

#190 BillyBob on 03.26.21 at 7:11 am

#172 Victor V on 03.26.21 at 12:44 am
Would you vote for a party that imposes the capital gains tax on principal residences?

https://twitter.com/bnnbloomberg/status/1375059430342066178?s=21

————————————————

Yes.

And Insha’Allah, I will.

“Dear BillyBob,
 
Thank you for your email of , in which you provide your updated mailing information.
 
The purpose of this message is to confirm that your address has been noted as up to date.
 
When the next federal general election (or by-election in your riding) is called, we will send you a special ballot voting kit with all the material needed to cast your vote under the Special Voting Rules, Part 11 of the Canada Elections Act (the Act).
 
Should the information you have provided change at any time, or should you return to Canada to reside, we ask that you notify Elections Canada, using the contact information in our signature block below.
 
If you have any questions, please do not hesitate to contact us.
 
Sincerely,
 
 
Enquiries Agent
Alternative Voting Methods
Elections Canada
Tel: 1-866-222-2565 (toll-free) • 613-949-7502 (collect)
Fax: 1-800-363-4796 (toll-free) • 613-998-8393
[email protected]

God bless the Liberals for restoring expat voting rights after those mean Cons tried to limit them. The nerve!

#191 crowdedelevatorfartz on 03.26.21 at 7:51 am

@170 Sail Away

Did you see the Elon fireworks show last night.

I saw the ISS fly over Vancouver about 8:40 pm and then at 9pm I saw this…….

https://www.citynews1130.com/2021/03/25/spacex-failure-pacific-northwest/

I knew it wasnt a meteor because i was able to follow it with my binoculars for about 10 seconds.

Impressive.

#192 Sail Away on 03.26.21 at 8:21 am

#175 Nonplused on 03.26.21 at 2:31 am

Re: cordless batteries

————

You are correct that batteries lose juice over time. 10 years… maybe 15. However, and here’s the beauty- cordless tools, Teslas, and nearly any battery-powered equipment uses arrays of 18650 lithium ion cells (in Tesla’s case, around 7,000 of them). These are currently the gold standard of today’s rechargeable tech.

It’s worth the time and effort to study rechargeable electric, since quality 18650s can be ordered from Ali Baba and used to rebuild nearly any and all portable electronics. Often the problem will be a single bad cell- replace that and you’re good for many more years. Never again will you toss anything due to bad battery.

If you can team up with others to buy in bulk, it’s possible to rebuild 18-20v battery packs, replacing all cells, for $10-15 each. As mentioned, though, rarely do all cells need replacement. Since a cell array lasts longest when all cells are near-equal degradation, it’s often better to scavenge from other defunct battery packs, which have usually died from a single bad cell. Then repair for free. People will give you dead cordless batt packs all day long.

A spot welder is needed for the soldering, or an industrial press array solderer because the outer cell jacket is too much of a heat sink to work properly with a hobby soldering iron. Luckily our local Makerspace is well setup for DIY, or it might be best to take the arrays to a local electronics fabricator.

Watch the cross- connection! Li-ions go cherry red in a millisecond, haha.

Another path of nearly endless interest and exploration. Life has too many of these.

#193 Sail Away on 03.26.21 at 8:37 am

#191 crowdedelevatorfartz on 03.26.21 at 7:51 am
@170 Sail Away

Did you see the Elon fireworks show last night.

I saw the ISS fly over Vancouver about 8:40 pm and then at 9pm I saw this…….

https://www.citynews1130.com/2021/03/25/spacex-failure-pacific-northwest/

I knew it wasnt a meteor because i was able to follow it with my binoculars for about 10 seconds.

Impressive.

———–

Cool. Reentry is tough, which is the reason nobody before Elon ever figured out how to reuse rockets. Luckily it had already completed the mission and deposited its payload.

#194 Prince Polo on 03.26.21 at 8:49 am

https://globalnews.ca/news/7719049/canada-housing-market-overheating-cmhc/

If CMHC cares so much about it, why don’t they make the ultimate sacrifice, and self-immolate itself? Yes – I have a simple-minded view of the world.

#195 the Jaguar on 03.26.21 at 8:52 am

@#189 BillyBob on 03.26.21 at 7:00 am
It must be ‘Kismet’. Just started reading ” The Race to Save the Romanovs’. We’re living through a similar revolution these days, though most are not seeing it. There are a few on this site ( Antifaschistische Aktion types). Too many are unaware of world history or its tendency to repetition. Just ask Fishman.

Yes, the planning is almost as fun as the execution with travel. I got a tip that Icelandair to Reykjavik is efficient. It means travelling to Edmonton as a departure point, but sacrifice and success go hand in hand. There are a few plans on the drawing board. Opportunity knocks when the mob is preoccupied with hand wringing. What a great time to be alive.

#196 If Aesop were around would he buy a condo in TO? on 03.26.21 at 9:04 am

Nice dog. I like dogs as much as the next guy but from afar. Stoop and scoop at 7AM is too big a commitment.

It’s gotta be said, I like dogs as much as the next guy but face it, dogs are evolutionary sellouts, wolves that traded in their freedom for three square meals a day, as Aesop said long ago in the fable, The Dog and the Wolf.

A Dog offered to help a Wolf get regular feed from his Master. The Wolf listened but saw a bald spot on Dog’s neck where the collar sat. Goodbye said Wolf.

Dogs are all well and good but in these times we’d do better to have some stones and emulate the wolf. The wolf would rather forgo granite countertops in his doghouse than live on the bank’s leash.

#197 the Jaguar on 03.26.21 at 9:14 am

Lots of commentary on the Supreme Court ruling….Guess we’ll see who is best able to adapt and thrive in the coming period of self containment. They think they’ve killed that Golden Goose, but it’s survival skills are unmatched. Border Collie-like. It will be too late when the Brutes wake up to the reality of their own self inflicted demise. Mercy.

#198 Grasshopper on 03.26.21 at 9:18 am

#162 Leebow

I don’t know why some individuals seem to get pleasure by taking the wind out of another person’s sail. It doesn’t help anyone.

Perhaps my suggestion to reduce competition for finite resources struck a nerve.

Perhaps it was your wine consumption.

Perhaps it was something else.

https://www.dumasaphobia.com/about.php

“Have a nice day!”

#199 Guelph Guru on 03.26.21 at 10:03 am

To act on Garth’s request to man up, I am suggesting Justin to remove tax payer support from CMHC. Stop QE immediately. Maybe if he wants to be more manly, back our currency with Gold.
That should do it.

#200 Rosco on 03.26.21 at 10:39 am

Important info for Supreme Court Judges ,climate alarmist’s and other’s.
ATMOSPHERE:
78% Nitrogen
21% Oxygen
0.04% CO2
0.96 % Other

#201 Wonky steerage on 03.26.21 at 10:42 am

How many helium balloons would it take it to float the Suez ship to set it free? Would a lot of trump baby balloons do the trick?

#202 Faron on 03.26.21 at 11:05 am

#200 Rosco on 03.26.21 at 10:39 am

Important info for Supreme Court Judges ,climate alarmist’s and other’s.
ATMOSPHERE:
78% Nitrogen
21% Oxygen
0.04% CO2
0.96 % Other

0.041 actually. And if you don’t understand the physics of why that matters — a lot — you probably should express your desires in non scientific terms i.e. policy.

#203 Faron on 03.26.21 at 11:12 am

#192 Sail Away on 03.26.21 at 8:21 am

#175 Nonplused on 03.26.21 at 2:31 am

Re: cordless batteries

Although not the best solution for the planet because repairability trumps freebies by far, RIGID offers free battery replacement for life with their tools which is a big reason I’m leaning in that direction. Now, what kind of tech will be out there in ten years and if that tech is included in the policy will be determined later.

Battery care is important though.

#204 Stalwart Carl on 03.26.21 at 12:13 pm

Trudeau Legions show an amazing blast of stupidity.

A) Trudeau drops the interest rates and ignites real estate borrowing.

B) Trudeaus Braintrust says the raise in house prices is based on 50 years of ownership ghat should be taxed to put a cap in prices.

C) The only reason real estate prices are out of control is a corrupt political BOC that lost its credibility when it became a Liberal lapdog.

Conclusion: Trudeau thinks you’re really that stupid. If you let him grab your life savings you really are that stupid.

#205 Rosco on 03.26.21 at 12:26 pm

#203 Faron
OK, then I desire no policy.

#206 Sail Away on 03.26.21 at 12:53 pm

#160 Ustabe on 03.25.21 at 9:34 pm
@ #70 Doug t on 03.25.21 at 5:19 pm

A clinical psychologist would have a field day by following along here for a bit.

————

The main difference between a reputable, registered psychologist and Skippy the internet psychologist is that a certified professional would never dream of making a diagnosis without extensive in-person evaluation, and wouldn’t be doing it to try to cast shade.

Please proceed, Dr. Skippy. Hey, maybe next you can try out ‘Engineer Skippy’?!?

#207 IHCTD9 on 03.26.21 at 1:06 pm

Talking with my youngest the other day about differences in town and local culture between now and when I was his age (16).

I surprised myself with the eventual realization as we chatted on the long term trend. That trend is greatly reduced in-person socializing and mingling. This town was just loaded with bars and pool halls back in the 80’s – just about all (like 95%) of these are gone. The local bowling alley just threw in the towel this year too.

I guess it all makes sense. Entertainment from home is cheap, limitless, and high quality these days. Movies, TV, video games, communication all via the net. Take-out can be delivered to your door multiple ways, hell my son mentioned some of his classmates use “skip the dishes” to deliver lunch to them at school on occasion.

Back yards are looking more and more like parks, complete with pools, hot tubs, and huge masonry BBQ’s. A long time ago, it was easy to catch a stranger’s eye for a nod or a “good-morning” – today it’s walking by head down staring at a phone.

I wonder what’s next? Maybe WFH/remote work will slowly increase and start cutting into the last bastion of significant human in-person socialization? Seems to fit in with the trend, and the globalized mono-culture that is developing. Self driving cars so you can “sleep travel” or fart around on your phone even more? Drone/courier deliveries eradicating the need to physically shop? It all fits together nice, and is totally plausible.

#208 paulo on 03.26.21 at 1:34 pm

How To Address The Rea Estate Mess

Limit Capitol gains on PR to once in a life time and only after 10 years of ownership.
House Flippers : taxed at 75% of profits period
Institute a federal tax credit of 500 dollars annually for renters requiring the renter to provide landlords name and address rent is paid to than merge the data at the federal CRA level to confirm the home owner claimed the rent received on there tax return: massive exposure of tax cheats/frauds and huge source of discovered underground unreported income.
As it would seem that the governor of the bank of Canada is more than a bit out of touch with reality, replace him with one that’s on game.
Immediately stop purchasing garbage/sub prime loans off of banks books and start moving interest rates up slowly

#209 Average Man on 03.26.21 at 5:22 pm

Why have the feds step in? Why not just let it inflate til it pops and then, as the song from the early ’00s goes, let the bodies hit the floor?

It’ll be a hard lesson, but maybe people need to learn it.

#210 Canadian Moose on 03.26.21 at 7:43 pm

God Bless Madison! Loyal in the face of such adversity!

#211 Dharma Bum on 03.27.21 at 10:23 am

#106 Chase them out

We are a family of 5 in 1,800 sq ft … so 360 each. Most seniors around us are living in homes over 3,000 sq ft or 1,500 each. Time to tax their asses out of these homes.
————————————————————————–

You sound like a nazi in those old WWII flicks.

Take property from others because you want it.

Besides, my fat ass needs half of the 3700 sq. ft. it sits in.

Wife’s ass needs the other half.

Who are you to judge?

Ever see the size of my ass?

Keep squeezin’ in with your miserable brood, dude.