Risk off

When Sharon approached her long-time bank (the purple one) for a mortgage on a secondary property (because she’s a 1%er) the reply surprised. “I had no idea,” she said afterwards, “that where you want to buy makes such a profound difference in what they’ll lend.”

It’s true. One deal for buying in the Big Smoke. Another entirely for Bunnypatch.

In her case it was an offer on a cool house down in Ontario’s banana belt of Niagara. “Our lending policy allows us to finance 80% up to $750,000 and then 50% of the remaining balance,” her mortgage-specialist [email protected] wrote. And in contrast this is the deal when buying an urban house for exactly the same price at the same rate by the same person with the same income: “For a property located in Toronto, our lending policy allows us to finance 80% up to $2,250,000 and then 50% of the balance for a townhome/ house. Our lending policy for a condo would be 80% up to $1,000,000 and then 50% of the balance.”

Why the huge difference? For example, on a $2 million property (no big deal anymore) in T.O. Sharon could get a loan for 80% of the entire price, while out of town the max would be $1.2 million. In the city it would take a down payment of $400,000, and in Bunnypatch she’d need twice as much cash.

Well, the bankers have always coughed up extra credit for property purchases in markets they deem more stable, sustainable and in-demand. In contrast, cottages, farms and recreational properties have been harder to finance and usually more costly to buy. Not always, but normally. And especially now.

Price appreciation in the burbs, hinterland, sticks and hick cities since Covid came to town has been unprecedented. It’s a pure phenom. Bankers aren’t dumb. They can see the risk. The pendulum will swing in the other direction in the months or years ahead, and they don’t want owners walking away from real estate that’s in negative equity.

Those risks include a gradual, inevitable end to WFH for most people. It won’t be immediate. But it is assured. Hybrid first, then – when that no longer works – back to the workplace. Also factored in are higher interest rates. No, not now, but when 2020 and 2021 mortgage renew in 2025 and 2026. There will be no more 1.4% VRMs, HELOCs at prime or fivers at 2%. Bankers are preparing now.

More risk – property taxes. In places (like Ontario) with assessments based on market value and rapidly rising prices there’s a tax bomb coming. Properties have not been reassessed for more than two years, during which time values have jumped 40% and municipalities been whacked with extra costs. For example, the small-city property Sharon wants to buy for just over two million is assessed at $929,000. The tax lady at Town Hall told her to expect to pay 1% of her purchase price in property tax after re-assessment. The current tax bill of ten grand will double. Has everyone who moved in the last year budgeted for this?

Finally, the market. Are prices in the 200-km swath of land outside major cities in Canada sustainable? Is it reasonable a detached house in the car-centric boonies should cost the same as one where people can catch a 15-minute subway ride to work downtown? Or to a (ugh) Drake concert? Or a Jays game? If the work-from-home experiment fades along with the effects of the pandemic – and with prices so high most first-time buyers (who make up 50% of the market) are shunned, what will keep prices aloft?

Yep, risk. It’s what bankers do – try to contain it, especially for loans where they are not covered with tax-payer funded insurance. These days that includes every deal with more than a million. And you know what seven figures buys in the GTA or the LM. A nice garage?

Speaking of debt, we now owe $2.15 trillion. That staggering sum is increasing by an annual rate of 12%, or three times inflation and six times wage gains. In the second quarter of the year, reports Equifax, new mortgage loans increased more than 60%. That was the biggest increase ever. And we’re addicted to HELOCs, too. The number of demand loans secured by real estate has just increased 56% year/year. Of course, these loans are tied to the prime rate, which rises immediately when the Bank of Canada decides the time has come to end emergency lending. That looks like the second half of 2022. Says Equifax…

“With many consumers now heavily leveraged and the potential for increases on variable rate mortgages and HELOCs, consumers may find themselves not in a position to pay back their debt obligations if interest rates rise. This can lead to higher insolvencies”

Of course, nobody believes this. Interest rates cannot rise. People will forever be paid their full wages to stay at home in their jammies and peck away at their keyboards while deshedding the cat. Nobody will commute in the future. Mortgage costs and property tax payments will be stable. And there’ll always be a lineup of people to buy your house for more than you paid. Way more. No matter what soulless place you moved to.

Bankers, meh. What do they know about making money?

About the picture: “Really appreciate your (and your team’s) daily advice as we navigate a turbulent time,” writes Blaine. “This is Kilo. He is eleven years old going on five. He has a great enthusiasm for the outdoors – even when it’s a little chilly. Your blog is a great service to Canadians and I count myself fortunate to have discovered it. Much appreciation for the efforts you put into it day in and day out.” Do you have a canine to share with us? Send me a picture and some words – [email protected]

151 comments ↓

#1 Doug t on 08.31.21 at 2:09 pm

any dog that ice fishes is a great pooch indeed

#2 XGRO and chill on 08.31.21 at 2:20 pm

“Speaking of debt, we now owe $2.15 trillion. That staggering sum is increasing by an annual rate of 12%, or three times inflation and six times wage gains.”

That’s okay, our GDP is growing faster than 12%.

Oh wait.

https://www.cbc.ca/news/business/gdp-second-quarter-1.6159411

#3 Shirl Clarts on 08.31.21 at 2:27 pm

Since Trudeau announced higher taxes for big corps, the big banks are trading between 2.5 and 4.5% lower.

Looks like the market is trying to price it in, just in case the Cons fail… again.

#4 VladTor on 08.31.21 at 2:28 pm

….People will forever be paid their full wages to stay at home in their jammies and peck away at their keyboards while deshedding the cat. Nobody will commute in the future. Mortgage costs and property tax payments will be stable. And there’ll always be a lineup of people to buy your house for more than you paid. Way more. No matter what soulless place you moved to.

********
Ha-ha-ha!!!!!

Garth, perfect RE mantra collection! Send it to your “friend” – if I remember his name – Palatis

#5 IHCTD9 on 08.31.21 at 2:31 pm

Ice fishing – and not a single bottle of hooch in sight.

A carefully taken picture!

#6 Woke up this morning... on 08.31.21 at 2:31 pm

Looks like Canadian economy has been taking a swim in the pool and experiencing shrinkage.

#7 Julio on 08.31.21 at 2:32 pm

So let’s recap: banks give up to 2m in credit for houses sold in Toronto, to mere mortals. That means thry can see houses not depreciating in the big cities, right?
Taxes will rise and that may (or may not) make the life of some overly indebted individuals, even harder.
Rates will rise and we know what may follow…
There’s only one thing: the govt won’t take measures that will bring a lot of borrowers to defaulting state. Some yes, but that’s ginna be negligible.
Look at Japan. No growth, the population is overly indebted, the show must go on. The houses are not growing in price, the Bank of Japan owns 40% of the economy. That’s a very likely scenario for the western world. And no, the rates won’t ride to the point where te individuals won’t be able to service their debt…. Unless the govt wants even bigger economic issues.

#8 S.Bby on 08.31.21 at 2:38 pm

NDP’s Jagmeet Singh promises to get ‘big money out of housing’ during second Coquitlam visit:

https://www.burnabynow.com/local-news/ndps-jagmeet-singh-promises-to-get-big-money-out-of-housing-during-second-coquitlam-visit-4268199

Does he have any clue about how this all works? Maybe yes or maybe no, but he says what some voters want to hear.

#9 Dave on 08.31.21 at 2:49 pm

Garth has stated that a real estate correction is never more then 10% to 15%. Then a slight slow period and then the government opens up the rich immigration.

Inflation is 2% in government world….for real people in the real world it’s 20% to 30%

#10 X on 08.31.21 at 2:52 pm

I know the bank will stop buying bonds before any rate hike occurs, but the sooner the better imo. Increases to mortge costs at renewal, increased property taxes, inflation, could all lead to tight financial times ahead. All of which sucking air out of the economy.

#11 Dolce Vita on 08.31.21 at 2:53 pm

Good news. Bad news.

(And Garth you’ll be pleased to know they bought new undies)*

June GDP +0.7%.
2nd Qtr GDP -0.3%

Economic activity still 1.5% below February 2020’s pre-pandemic level.

Highlights to me:

– Household spending flat +0.1% 2nd Qtr. Household saving still double digit at 14.2%. Higher the income bracket, higher the savings. Disposable income +2.2% **

– “Housing investment reshapes the economy” $62.3 billion of residential mortgage debt in the last half of 2020, households added $84.2 billion more residential housing debt in the first half of 2021.

– * People bought CLOTHES in June, Retail Trade +4%, clothing and clothing accessories (+41.8%), general merchandise (+9.0%), furniture and home furnishings (+14.7%) and sporting goods, hobby, book and music (+20.1%) stores.

– ** bolstered by rising compensation of employees along with increasing transfers received from government, which were partially offset by a 2.8% rise in personal income taxes.

2nd Qtr
https://www150.statcan.gc.ca/n1/daily-quotidien/210831/dq210831a-eng.htm?HPA=1

June
https://www150.statcan.gc.ca/n1/daily-quotidien/210831/dq210831b-eng.htm?HPA=1

—————-

Italia 2nd Qtr GDP out today as well:

+2.7%

It’s because we won a Euro Song Contest and Euro 2020 Football, go figure.

Off to Venezia to test my Digital Green Pass on the trains, mandatory tomorrow in Italia.

#12 Prince Polo on 08.31.21 at 2:55 pm

Most importantly, bankers know how much of a sweet divvy raise they are going to unleash on their shareholders!

#13 S.Bby on 08.31.21 at 2:58 pm

The local NDP are all over this:

https://www.burnabynow.com/local-news/new-westminster-burnaby-ndp-candidate-demands-answers-for-liberal-candidates-alleged-house-flipping-4266744

#14 Nonplused on 08.31.21 at 2:58 pm

Makes sense to me. What was that Buffet rule? “#1. Don’t lose money. #2. See rule #1.”

Banks always factor in your ability to pay, the stability of your income, and the likelihood they can recover most of their money if you do go insolvent through foreclosure. Otherwise they wouldn’t need CHMC or a down payment. You can think of the down payment as prepaying their foreclosure costs.

So ya it should come as no surprise that they aren’t keen to lend at multiples of the most recent appraisal in areas that have shown unusual price gains in recent months. One data point does not a trend make. So I could reinterpret the policy as thus: “We’ll lend you 80% of historical price trends for the area, but only 50% of recent price movements.” They are still taking a lot of risk to do that if you ask me.

I don’t think this is anything new. The banks have always been reluctant to lend significantly over appraised value. Not the municipal value, but there is a reason real estate appraisers are a thing. How much a house might be sold for is always a concern for them when deciding how much to lend. If you want to bid up the price using your own money, they don’t really care, but if it’s their money they want to see it backed by a reasonable asset value.

This is also why you can get a secured HELOC for 60% of your equity but an unsecured HELOC will be more in the $10,000 range. Or why credit cards carry such breathtaking interest rates. They have to recover the bulk of the money you spent at the bar before you decide to stop paying.

So I don’t see anything wrong with what Sharon’s bank is doing. They are not being altruistic; they are only saving themselves. But in doing so they may be saving Sharon too.

I know, I know, house prices only go up. But people don’t give enough consideration I think to exactly what being forced to sell when you are $100,000 under water actually means in terms of blood, sweat and tears. Even for a 1%er that can be a whole year’s after tax earnings. Imagine having to spend a whole extra year slaving away in the salt mine because you over-bid on a house!

Remember folks, if the bank won’t lend you the money, you are out of your league.

#15 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 08.31.21 at 3:05 pm

Is it reasonable a detached house in the car-centric boonies should cost the same as one where people can catch a 15-minute subway ride to work downtown? Or to a (ugh) Drake concert? Or a Jays game?

__

Garth, any glass-walled condo within sight of the Scotiabank Morgue should be much cheaper – just think of the thousands of extra dollars the residents there have to spend on anti-depressants each year thanks to the Make Believes!

But I agree, the rest of the prices in Toronthole should be higher, because most of those households will become insurance-rich once a family member gets shot, just a matter of time.

#16 Linda on 08.31.21 at 3:06 pm

Speaking about banks & money, the election proposal to possibly impose a tax on banks has apparently already had an effect on how the banks are loaning $. Yes, the consumer will be seeing those possible new costs of doing business passed on – banks being in the business to make money. So those cheering on the potential new tax will be the ones ultimately paying it, in the form of higher user fees, service charges or interest on borrowed funds. Anyone who thinks otherwise has drunk the Kool Aid.

About the WFH scenario. Could the need to limit greenhouse gas emissions support the trend? For sure we have driven a lot less since the pandemic began. Even now that a lot of restrictions have been eased the amount of driving isn’t back to what it was pre-Covid. Just a thought.

#17 crowdedelevatorfartz on 08.31.21 at 3:10 pm

@#13 S. Bby
“The local NDP are all over this:”

+++

Its a shame the NDP in the Vancouver/Granville riding where “Taleeb the Liberal House Flipper” is running as a candidate haven’t spoken up.
Why does it take a New West NDP candidate to raise the issue?
Has the Van/Gran NDP candidate lost their tongue?

Libs may not have a “shoe in” in the Vancouver/Granville riding if the media keep sniffing around Taleeb’s investment dealings.

#18 TurnerNation on 08.31.21 at 3:11 pm

Little glimpse into the future. The slow ban of cars and travel. You will be trapped in your UN Smart City.
Were we being trained with those roadblocks and ‘travel bubbles’? You will own nothing and be happy!!

“BBC reports: A speed limit of 30km/h (18mph) has come into force across Paris in a drive to improve the environment.[…]The measure is being introduced now so Parisians can get used to it during a period of lighter summer holiday traffic, city officials say.It’s one of several policies proposed by Ms Hidalgo, who was re-elected last year, to wean Parisians off their cars.The number of street parking bays is being halved and most vehicles are expected to be banned from the city centre next year. Cycle lanes have increased and streets are being redesigned to make districts more pedestrian friendly.”


— Holy shoot I wasn’t kidding- open air camps. Students are being trained to eat in the camp tents! At Duke University USA. Science in action.

https://www.wral.com/coronavirus/virus-cases-among-vaccinated-students-prompt-duke-to-widen-mask-mandate-tighten-restrictions/19849861/
“Campus dining facilities have halted indoor seating, and more than 25 tents have been set up on campus for outdoor seating for meals. Also, faculty have the option of shifting their classes to remote instruction for the next two weeks because of the potential for increased absences while infected students are in isolation.”



— How healthy we will be. Are we still banging pots and pans at 7pm?
Always remember that your government loves you.

.Scotland: Record 400,000 waiting to see NHS specialists (bbc.co.uk)

#19 Sail Away on 08.31.21 at 3:11 pm

#14 Nonplused on 08.31.21 at 2:58 pm

Makes sense to me. What was that Buffet rule? “#1. Don’t lose money. #2. See rule #1.”

———

There are two buffet rules:

#1: Take a new plate each time
#2: No sharing

#20 EasyToUnderstand on 08.31.21 at 3:13 pm

COVID-19 mRNA Vaccine: Will It Change My DNA?

https://youtu.be/Kd-E95tXfsY

#21 Dolce Vita on 08.31.21 at 3:16 pm

Polling Bias.

I really like this Polling Canada (@CanadianPolling) on Twitter. They show polls by different pollsters and provide an AVERAGE of the polls:

https://twitter.com/CanadianPolling/status/1432477794806730756 (a Con Majority folks)

Tell me there isn’t any bias, as in statistical, in these polls:

Abacus:
https://twitter.com/CanadianPolling/status/1432706940812075009

Mainstreet:
https://twitter.com/CanadianPolling/status/1432685853772378117

Research Co:
https://twitter.com/CanadianPolling/status/1432563669066518533

Leger (they say 25% undecided):
https://twitter.com/CanadianPolling/status/1432715098192293894

Then Leger posts this, recall 25% were undecided, but PRESTO no more are they undecided (mercifully they went Con):
https://twitter.com/CanadianPolling/status/1432705390760927253

Both Leger polls on Aug 30. The right arm unaware of what the left arm is saying?

———————

Polls not to be believed, maybe the average of all polls…even then.

#22 IHCTD9 on 08.31.21 at 3:18 pm

Out here in the sticks, for those not living and working in the area, houses really only have a couple uses. Retirement, and recreational. What’s that worth? Probably not the 30-40% premium paid in 2020/21 by the gta fomo wfh’ers.

I hope things do cool off, but that is a big drop for recent buyers who will instantly be in the red. They’ll stay that way too.

Lots of GTA folks bought houses out here as investments too – and are renting them out. They’re looking at negative equity on top of their pre-existing piddly cashflow – and it’ll be totally illiquid at the price they paid last year. Most of the new amateur LL’s who bought out here in 20/21 are probably heading for long term crappy investment performance.

#23 Nonplused on 08.31.21 at 3:19 pm

Something for Faron:

https://mishtalk.com/economics/trumps-global-trade-war-was-over-manufacturing-bidens-will-be-over-clean-energy

But it doesn’t really matter much IMHO because at present there is no scalable replacement for carbon based fuels and there won’t be by 2030. You can’t argue with thermodynamics. Sure, we should build all the hydro we can (mostly done), all the pinwheels we can (good sites already built), and develop as much solar as we can (lots of rooftops to go but it is expensive), but we need just about all that can be built in a year just to keep up with demand growth. Scaling that up to replace existing carbon fuels, which currently make up about 85% of existing energy sources, by 2030, will be a Herculean task and a carbon tax won’t do it.

https://ourworldindata.org/grapher/energy-consumption-by-source-and-region?country=~OWID_WRL

Nuclear is the big wild card, but the best time to plant a tree is 20 years ago. We kind of missed the boat on that one. But the second best time to plant a tree is today. We better get going on it though, there isn’t any time to waste.

So don’t worry about the oil and gas industry, it isn’t going anywhere for a long time to come. Coal will be back too, just not in North American or Europe. But you’ll find that in India, China, Africa, and South America, the average person doesn’t really care about your global warming. They want a TV and a car. And A/C. Who cares about global warming if you have A/C?

The future will look much like the past, as it always does. In the same way as when energy consumption in North America and Europe stabilized, China’s skyrocketed, any fossil fuels freed up in one area of the globe are going to find a home somewhere else. This will continue until alternatives are truly cheaper, safer, and just as reliable.

#24 Do we have all the facts on 08.31.21 at 3:20 pm

Since average wage increases cannot match the current rate of inflation and interest rates cannot get any lower how can the average cost of housing across Canada go anywhere but down. Even if interest rates are kept low in a desperate attempt to shore up the real estate market the key factor will always boil down to disposable household income.

As I mentioned in an earlier comment to this blog the Federal government has forecast a 5.0% annual increase in personal and corporate income taxes over the next four years. The Province of Ontario have projected 4.6% per annum increase in total revenues over the next two years but have yet to mention any increase in income taxes. Municipalities across Ontario have indicated that increased market values will definitely trigger substantial increases in property taxes even if mill rates remain constant.

In short average disposable household income will probably shrink in the coming years and it seems certain that average house prices will follow. Any increase in mortgage interest rates will only accelerate this downward trend.

Adding to future trends is the probability that all governments and many companies will attempt to reduce annual expenditures. Based on past experience the first target of austerity is the total cost of wages and benefits.
Canada’s labour participation rate actually declined as our economy was recovering in 2021 and proposed austerity measures will probably continue that trend.

In short it seems extremely doubtful that average house prices can continue to increase at a time when so many factors will reduce average disposable household income. As noted above the banks are currently adjusting their policies in anticipation of future trends.

Pity the current election has shown only passing concern over the impact that inflation without a substantial increase in wages or benefits might have on our future quality of life.

Ignoring an issue won’t make it go away!

#25 Dolce Vita on 08.31.21 at 3:29 pm

One last salvo Garth.

You know it’s all over for the Libs when a TV cameraman more captivated by a chipmunk in the background while Trudeau nattering on about another campaign promise (mental health) he will break if elected:

https://twitter.com/glen_mcgregor/status/1432715908636725258

Have fun with it people.

#26 Faron on 08.31.21 at 3:32 pm

#202 Sail Away on 08.31.21 at 2:33 pm
#197 Faron on 08.31.21 at 2:06 pm

To the vaccine hesitant: It’s. Not. Just. About. You.

https://steady.substack.com/p/dear-american-healthcare-workers

Libertarianism ends when your choices make others’ lives harder. Do better! Get your shot!

——–

I always find it exceptionally annoying.

You mean, like this?

I apologize on behalf of all Venezuelans for the example Sail Away has set by having his feelings rankled by an editorial expressing sympathy for healthcare workers that have been put through hell by vax denying (seems you only got your vax ’cause business, so not a stretch) ignoramuses like himself.

#27 Dolce Vita on 08.31.21 at 3:32 pm

RE: One last salvo Garth.

Correction.

That was a red squirrel.

Apparently nasty.

#28 The Republic of Albertastan on 08.31.21 at 3:33 pm

Why are there two debates in french… and all the debates are held in Quebec…..

And it seems while in Granby, Quebec T2 effectively said the oil sands will be shut down… thanks for letting us know!

Hopefully Jody Wilson’s book.. out Sept 14th… can put the end to this faux-feminist

#29 Nonplused on 08.31.21 at 3:41 pm

#3 Shirl Clarts on 08.31.21 at 2:27 pm
Since Trudeau announced higher taxes for big corps, the big banks are trading between 2.5 and 4.5% lower.

Looks like the market is trying to price it in, just in case the Cons fail… again.

———————————-

Don’t worry about the banks. They’ll just raise their fees.

Once you are paying more bank fees, you’ll spend less at Canadian Tire or Denny’s so their income taxes will go down. Net revenue boost to the government: zero.

We all pay the same effective tax rate. For the 99%, it is just buried in price. It’s just easier for the government to hit up one dentist to collect the revenue than to audit his hundreds of patients for a few dollars here and a few dollars there. Everybody still pays. The dentist only has one place to get the money, and that is from you. So don’t forget to brush.

We are at peak tax. Nothing can be done at this point to increase government revenue without causing decreases somewhere else. Only social justice adjustments remain. Trust me, if there were any way to squeeze more tax revenue out of the economy without doing more harm than good, they would have done it by now. They’ve been working at it a long time. Maybe there is one magical idea nobody thought of before that they haven’t tried yet, but I doubt it.

#30 S.Bby on 08.31.21 at 3:47 pm

House appraisals seem to be all over the map. How are people getting these huge mortgages on lower appraisals?

We had a column here a few months ago where the appraisal was lower on a Langley townhouse and the place sold for way over appraisal and they got a mortgage anyways.

#31 Ponzius Pilatus on 08.31.21 at 3:49 pm

#5 IHCTD9 on 08.31.21 at 2:31 pm
Ice fishing – and not a single bottle of hooch in sight.

A carefully taken picture!
—————-
Looks very tight in there.
No place for a claustrophobic like me.
But a bottle of Jäger could entice even me.
Do they ever catch anything?
Except a cold?

#32 crowdedelevatorfartz on 08.31.21 at 3:50 pm

@#23 Dolce
“You know it’s all over for the Libs when a TV cameraman more captivated by a chipmunk in the background while Trudeau nattering on about another campaign promise…”

++++

Bwahahaha.
Comment of the Day!

Subcaption.

“Even a peanut brained squirrel knows it should save for the future….”

#33 Shawn Allen on 08.31.21 at 3:54 pm

Money Printing?

Canadians should worry less about central bank money printing and more about their own money printing. Borrowing money adds to the money supply. Loans go up and banks deposits go up in tandem. Bank deposits are money. It’s generally a great system but might be over-cooking at this time. It is plumping inflation.

It is mostly driven by low interest rates and we can blame the central banks for that.

It is also driven by bankers feeling that the risk in lending is low. That’s a self fulfilling prophesy to some degree. Easy borrowing means we can borrow more to make payments on past loans. The banks see low defaults and lend even more. Will the music stop at some point?

#34 The joy of steerage on 08.31.21 at 3:55 pm

31 crowdedelevatorfartz on 08.31.21 at 3:50 pm
@#23 Dolce
“You know it’s all over for the Libs when a TV cameraman more captivated by a chipmunk in the background while Trudeau nattering on about another campaign promise…”

++++

Bwahahaha.
Comment of the Day!

Subcaption.

“Even a peanut brained squirrel knows it should save for the future….”
….

Squirrels clearly know where to find all the nuts……oh sweet joy…..T2 is toast….

#35 Mark on 08.31.21 at 3:57 pm

less than 2 years ago, headlines were littered with reports about how most Canadian households were 1 paycheque away from insolvency. what happened? it’s the normal middle-class households buying and trading up not all 1%ers. where did they suddenly find so much cash/credit?

#36 cramar on 08.31.21 at 4:05 pm

Posted this back on Apr. 18, 2018:

Some financial wise sole named Garth Turner once said that the poor average Joe 6-pack puts their money in the bank, while the wealthy OWN the bank! The Big 6 made $42 billion in profit last year. Nuff said.

Financial 101

————-

Finance 101 updated by cramar Aug 31, 2021:

“Average people borrow money from the bank. The wealthy own the bank.”

——

Birthday greetings to Warren Buffett yesterday. Net worth at 21 was $100,000. Net worth at 91 is $100B (after giving half away). The power of compound investing over the long term. May you live to see a hundred!

#37 IHCTD9 on 08.31.21 at 4:08 pm

#30 Ponzius Pilatus on 08.31.21 at 3:49 pm
#5 IHCTD9 on 08.31.21 at 2:31 pm
Ice fishing – and not a single bottle of hooch in sight.

A carefully taken picture!
—————-
Looks very tight in there.
No place for a claustrophobic like me.
But a bottle of Jäger could entice even me.
Do they ever catch anything?
Except a cold?
___

Usually a buzz and a few fish. :)

#38 ogdoad on 08.31.21 at 4:08 pm

Someone deciphered the stone carving years ago which stated that owning property was the luxury of only the wealthy. And, its how people became wealthy in the first place and made others do what they wanted. Domestication of the human middle class (*Og). Along with chickens…

Now, we have people trying to own property with the hopes of sounding rich(you’re not b/c you’re in soooo much debt) to their friends (who aren’t b/c they just gossip about you) to what end? They’re usually not a boss that matters or a landlord of many people…Join the loser club!

Probably, being entitled, middle class crybaby, to ensure that your conversations are heard by your peers, peers kids, your own kids, to instill real time values for objects that are now coveted…and should remain so. People want to talk about themselves and how successful they appear (sooo impressed with your tesla for about 3 minutes…but if your 10yo girl can muddle through calc 1a, you’re doing O.K.) Ask her when she pulls herself up from her Chromebook, we’re dying to know!!

Og

#39 No Hindsight on 08.31.21 at 4:09 pm

#18 Sail Away

There are two buffet rules:

#1: Take a new plate each time
#2: No sharing

Perhaps a third should be added. If you’ve ever been on a cruise, it’s hilarious to see how people look behind them to see what those behind in the trough shuffle are looking at, and then take some/more of that. Lol.

#3 No hindsight

#40 crowdedelevatorfartz on 08.31.21 at 4:12 pm

Man the Twitter vids just keep getting better.

TWO first Nations Chiefs just blindsided NDP leader Jagmeet at his OWN event…

https://twitter.com/i/status/1432547329882591232

Crickets after that!

Bwahahaha

#41 Max Throttle on 08.31.21 at 4:16 pm

#35 Mark

less than 2 years ago, headlines were littered with reports about how most Canadian households were 1 paycheque away from insolvency

As we learned in politics, surveys and polls are rubbish. The one pay cheque debacle was clearly only if the Trudeau regime didn’t parachute pallets of cash to those in need and those in need didn’t continue eating at lavish restaurants, buying boats, RVs, vacationing and generally spending at max throttle beyond their means.

Everyone is a winner in Canada. Always.

#42 Joseph R. on 08.31.21 at 4:17 pm

#28 The Republic of Albertastan on 08.31.21 at 3:33 pm
Why are there two debates in french… and all the debates are held in Quebec…..

And it seems while in Granby, Quebec T2 effectively said the oil sands will be shut down… thanks for letting us know!

Hopefully Jody Wilson’s book.. out Sept 14th… can put the end to this faux-feminist

————————————————————

Think for a moment:

If he wanted to shut down the oil sands, he would have let KM terminate TMX. Instead, he purchased it from them and aims to get it in service next year.

Someone you trust is lying to you.

#43 That guy on 08.31.21 at 4:18 pm

Gentle Garth,
I remember you once discussed using a HELOC to purchase preferreds as a means to make money. Do our breathtaking debt numbers reflect any change in investment debts versus real estate purchase debts? I myself have a solid $1,000 owing on a non-HELOC as an attempt to buy the dip. However, I do not fancy taking on much debt so we only have a mortgage for less than 2x yearly income, with two vehicles owned outright.

#44 Dolce Gabbana on 08.31.21 at 4:23 pm

#11 Dolce Vita

…why did you omit July -0.4% GDP shrinkage preliminary data point?

#45 The Woosh on 08.31.21 at 4:25 pm

#35 Mark on 08.31.21 at 3:57 pm
less than 2 years ago, headlines were littered with reports about how most Canadian households were 1 paycheque away from insolvency. what happened? it’s the normal middle-class households buying and trading up not all 1%ers. where did they suddenly find so much cash/credit?

——————————————-

Same as the mortgage deferral cliff. It’s all a Nothingburger. Move along people. Nothing to see here! LMAO!

#46 Jake on 08.31.21 at 4:26 pm

Is it any wonder the guys running banks are among the richest dudes around. Follow the money. Those closest to the stash, know how to use it.

#47 Linda on 08.31.21 at 4:29 pm

#35 ‘Mark’ – oddly enough, it costs $ to work for a living. Transportation, clothing, food & those ‘extra’ costs of chipping in a buck or two for colleagues who are getting married, having a baby, being promoted, leaving etc. sure adds up! So those expenses are suddenly eliminated. Plus during a lockdown where are you going to spend $? Not on eating out or shopping in general. Now throw in the government largesse – CERB & other program $ to the tune of literal billions. All applicants get $, for months on end. Don’t even need to use it to make rent or mortgage payments – both have been suspended, courtesy of the government. Now, one actually had to apply to suspend mortgage payments but stiffing the landlord didn’t involve any such pesky paperwork. As a result of all of the above not a few households saw their bank accounts not only go ‘into the black’ but swell to levels not seen for literal decades. Don’t worry, it won’t last. There are already indications that the fiscal reckoning is nigh.

#48 Moh on 08.31.21 at 4:35 pm

Lord knows how many folks smoke dope on the job while wfh

#49 Sail Away on 08.31.21 at 4:45 pm

#26 Faron on 08.31.21 at 3:32 pm

You mean, like this?

I apologize on behalf of all Venezuelans for the example Sail Away has set by having his feelings rankled…

———-

Naw, that’s fine since it’s obviously done from fascetious perspective.

Those yahoos in the article could have just thanked the healthcare workers instead of trying to raise their own importance ‘on behalf of the nation ‘, which was clearly a lead-in to running down those who aren’t them. Tools.

You’ve been played because you agree with the sentiment.

#50 Pbrasseur on 08.31.21 at 4:55 pm

Canada is amongst the household debt champions of the world, sharing that honour with other social democracy like Denmark, Norway and Sweden. Blame that on credit secured by some kind of statist intervention.

Difference with those however is that Canada is also a champ in public debt (feds and provinces combined) making us overall a worse basket case than poor Greece.

What could possibly go wrong?

#51 S.Bby on 08.31.21 at 4:57 pm

The central banks really run countries, not the politicians.

#52 That guy on 08.31.21 at 5:12 pm

“#48 Pbrasseur on 08.31.21 at 4:55 pm
Canada is amongst the household debt champions of the world, sharing that honour with other social democracy like Denmark, Norway and Sweden. Blame that on credit secured by some kind of statist intervention.

Difference with those however is that Canada is also a champ in public debt (feds and provinces combined) making us overall a worse basket case than poor Greece.

What could possibly go wrong?”

I wonder if you have it backwards….what could go right? In my own life, reducing debt, despite the sacrifices, had provided such freedom and a feeling of greater security. I have no idea how we are supposed to hold our heads high as we owe owe owe.

#53 kommykim on 08.31.21 at 5:14 pm

I want to believe… But interest rate increases are like the promise of cold fusion.

#54 That guy on 08.31.21 at 5:17 pm

“#8 S.Bby on 08.31.21 at 2:38 pm
NDP’s Jagmeet Singh promises to get ‘big money out of housing’ during second Coquitlam visit:

https://www.burnabynow.com/local-news/ndps-jagmeet-singh-promises-to-get-big-money-out-of-housing-during-second-coquitlam-visit-4268199

Populist imbecilities from Singh. Sad that he is so cynical about his fellow Canadians.

Populist imbecilities from Singh. Wish he wasn’t so pessimistic about his fellow Canadians.

Does he have any clue about how this all works? Maybe yes or maybe no, but he says what some voters want to hear.

#55 Stone on 08.31.21 at 5:19 pm

#46 Moh on 08.31.21 at 4:35 pm
Lord knows how many folks smoke dope on the job while wfh

———

Lord knows how many folks smoke dope on the job while wfw.

#56 Stone on 08.31.21 at 5:28 pm

Just pulling Garth quotes with a question at the end:

“Speaking of debt, we now owe $2.15 trillion. That staggering sum is increasing by an annual rate of 12%, or three times inflation and six times wage gains. In the second quarter of the year, reports Equifax, new mortgage loans increased more than 60%. That was the biggest increase ever. And we’re addicted to HELOCs, too. The number of demand loans secured by real estate has just increased 56% year/year.”

“Yep, risk. It’s what bankers do – try to contain it, especially for loans where they are not covered with tax-payer funded insurance.”

So here’s my question: Is risk contained or is it not?

Also, who is “we”? I don’t owe $2.15 trillion. I owe nothing. I do own a B&D portfolio that is stable and continuously growing spitting out juicy divvies regularly.

#57 Habitt on 08.31.21 at 5:30 pm

They don’t want people to walk away from obligations unless the losses are absorbed by government insurance. Them bankers sure enough are smarts.lol

#58 Overheardyou on 08.31.21 at 5:33 pm

Maybe when some finally have to walk away from their homes will people realize a debt ceiling is real. Until then, party on I guess!

#59 jess on 08.31.21 at 5:33 pm

“Average people borrow money from the bank. The wealthy own the bank.”

——
i might add : the easiest way to rob a bank is to own one;)

#60 Chalkie on 08.31.21 at 5:35 pm

The Municipal Tax man/woman is headed your way. Most homes will see increases up to 30% or possibly more, depending on where you live.
Once you are reassessed on your new home value for now, the new tax mil rate will start on the target date, once your home falls in value in the next year or two, and it well, Guess what, your tax rate stays the same, it will unequivocally not come back down. Buyer be aware not only for your double or triple mortgage payments down the road, your property tax hikes will be right there with those hefty mortgage payments.
Cheap money, will guys, for the record, there is no such thing, pay the piper days are just ahead for a large percentage of buyers who thought they were finally in the driver’s seat, hope you have air ride.

#61 S.Bby on 08.31.21 at 5:35 pm

#53 Stone

Lord knows how many folks smoke dope on the job while wfw.

I’ve seen people who go into the parking lot at work and get stoned and drunk. I’ve also seen them have car sex.

#62 Wet Rag on 08.31.21 at 5:44 pm

#53 Stone

Lord knows how many folks smoke dope on the job while wfh

———

Lord knows how many folks smoke dope on the job while wfw.

———

Lord knows how many folks smoke dope and get Covid.

What? Did you think weed was a free ride? No consequences?

https://ccsa.ca/sites/default/files/2020-04/CCSA-COVID-19-Cannabis-Smoking-and-Vaping-Report-2020-en_1.pdf

#63 jess on 08.31.21 at 5:47 pm

lock em up!

..A woman who goes by @AntiVaxMomma on Instagram was charged Tuesday with selling fake COVID-19 vaccination cards, the Manhattan District Attorney’s Office said”Self-described online entrepreneur Jasmine Clifford, 31, sold 250 cards for $200 each, according to the D.A. For a bonus fee of $250, customers could have their names entered into the New York State Immunization Information System, which supplies data to the Excelsior Pass, New Yorkers’ digital vaccine card. Clifford and Nadayza Barkley, a medical clinic worker in Patchogue, allegedly conspired together to sell the fake cards. Thirteen frontline or essential workers who bought cards were also charged. Some apparently work in hospitals and nursing homes, according to District Attorney Cy Vance. “

#64 Cto on 08.31.21 at 5:49 pm

Interest rates rising???
I wish I could still believe this to be true. It would solve legions of present and future economic issues.
Unfortunately I don’t think the central bank has what it takes to do the right thing, and of course there would never be the political will. They will just keep lieing about inflation and adjusting the goal posts. If things become hard to manage, there is always another crisis around the corner to keep those rates at 0.
Debt has truly become the wealth maker in this age.

#65 NOSTRADAMUS on 08.31.21 at 5:51 pm

MONEY CAN’T BUY ME LOVE !
Untold millions of dollars have been spent funding homes for the homeless, and yearly the numbers are rising. That is expected behavior, people from all over the world will attempt to get to a place that wants to hand out free housing. Some people object to the subsidized housing cost story. I do not know the true cost of “free” housing for all, and neither does anyone else. But I do know that hundreds of government sponsored “affordable housing programs” including “low cost” government loans have driven up the cost, big time. Tuition support did the same for the cost of education. Government involvement in anything is bound to raise the end price and cause massive tax hikes or both. I am going way out on a limb,” welfare, free housing, free, free,” begs the question, if I give my money in the form of taxes, what does a poor person offer in return? Obviously not money, time or effort. Food for thought, why would a successful person even try? I must be losing my patience, I can’t seem to find any opinion (I want) or that supports my position. I am on my throne and I will not step down.

#66 S.Bby on 08.31.21 at 6:06 pm

Google delays return to office until 2022:

https://www.cnn.com/2021/08/31/tech/google-office-return-delay-2022/index.html?utm_source=optzlynewmarketribbon

#67 yorkville renter on 08.31.21 at 6:21 pm

People do all sorts of things on the job… not sure why there’s the focus of ‘dope’. Probably WAY more drinking on the job, or just lacking actual attention at work.

#68 Shawn Allen on 08.31.21 at 6:25 pm

Banking

One man’s loan becomes another man’s deposit. And deposits seldom leave the banking system, they just move around constantly. Loans begat deposits (i.e. money). It is indeed a Wonderful Life. — At least for those who are net deposit owners as opposed to net borrowers.

#69 BillyBob on 08.31.21 at 6:39 pm

#23 Nonplused on 08.31.21 at 3:19 pm

Nuclear is the big wild card, but the best time to plant a tree is 20 years ago. We kind of missed the boat on that one. But the second best time to plant a tree is today. We better get going on it though, there isn’t any time to waste.

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

Agreed. They’re still moving forward on expanding nuclear in Czech here. Can’t stick your head in the sand forever.

https://www.dw.com/en/czech-nuclear-energy-ambitions-face-stiff-tests/a-56793586

“No parliamentary party in the Czech Republic opposes nuclear power, somewhat of a rarity in Europe. That reflects widespread public support and leaves environmentalists fighting a lonely battle against the expansion, which is the main plank in the government’s long-term national energy strategy.”

The best part is, the new plant is planned for 60 miles away from Vienna, so any problems will likely be for the Austrians to deal with.

Win-win.

#70 Concerned Citizen on 08.31.21 at 6:40 pm

“Of course, these loans are tied to the prime rate, which rises immediately when the Bank of Canada decides the time has come to end emergency lending.”

That time will be approximately never, ever.

All central bankers know is kicking the can. Real rates are highly negative right now. If the real rate was even 0%, western governments would go bankrupt. I read today that Social Security won’t be able to honour its payouts in 12 years. That’s practically tomorrow when it comes to a social security program!

Those thinking high inflation will cause the central banks to do their job are living like it’s 20-30 years ago. That’s the time when central bankers served the broader population, including younger generations, and were willing to impose some pain on asset holders. Now 99% of central bank policy is centred on the so-called wealth effect, which creates massive asset bubbles that enrich existing asset holders and make everyone else much worse off. Do you ever see them reversing this policy? You don’t think Jerome Powell would re-start QE (should he ever stop it, of course) if the stock markets feel 20%?

In 20 years when then-45-year-olds are still living with their parents and/or eating cat food so that they can pay the mortgage – with nary a discretionary penny to their name – I bet these very same policymakers will wonder why the economy is struggling. I never thought I would see the day when western civilization was so intellectually bankrupt.

#71 Adam on 08.31.21 at 6:54 pm

What’s the purple bank? RBC? If it’s RBC, then they actually use a Medium Persian BlueHex.

#72 My Body My Choice on 08.31.21 at 7:01 pm

DELETED

#73 Quintilian on 08.31.21 at 7:03 pm

crowdedelevatorfartz:

“So what YOU are saying is ……
Liberal voters are “disingenuous” and they vote for “pimps”?”

I say unequivocally : Yes.

And No, I do not suffer from multiple personality disorder.
I am a fair person not enslaved to dogma, and therefore, can see truth.

I view Liberals as contemptible, and disingenuous just like Conservatives, but Cons tend to be more vicious, less generous, less educated, and more Retrumplican like.

I truly dislike them as a group.

I am well aware how malevolent Liberals can be: I have freely chosen to support them in the past only as they are the less of the two evils.

#74 crowdedelevatorfartz on 08.31.21 at 7:11 pm

@#59 S.Bby
“I’ve seen people who go into the parking lot at work and get stoned and drunk. I’ve also seen them have car sex.”

+++++

I used to work at a Downtown Van office building as a power engineer.
Boilers, Chillers, HVAC .etc etc etc.
This one tenant, an arrogant 50’s office manager was ALWAYS heading to the underground parking with the 20 something office bimbos.
I’d give them ten minutes and then walk past his car while they were getting all hot and sweaty.
Busted.
Oh did i mention he was married with kids.
Really nice wife, great kids but the guy was an absolute prick.
Always loudly complained about everything to make himself look important.
This went on for about a year or so.

I ran into him and his latest office “conquest” one Friday night at the bar and asked him,
“Is your wife joining you and you daughter later for dinner?”

He paid his bill and ran.
Never had any probs with him after that.

#75 Keith on 08.31.21 at 7:14 pm

@ 63 NOSTRADAMUS

There are dozens of western democratic capitalist cities in the world with large amounts of non market housing tied to income, even tied to the welfare rates. Public housing stock between 25 and 60 percent of the total. This is one of the most widely studied cities.

https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_011314.html

Government done right (Norway’s 1.4 trillion sovereign wealth fund) is a good option for when the private sector can’t or won’t provide (affordable housing, why should they forgo profits).

#76 ImGonnaBeSick on 08.31.21 at 7:16 pm

#66 Shawn Allen on 08.31.21 at 6:25 pm
Banking

One man’s loan becomes another man’s deposit. And deposits seldom leave the banking system, they just move around constantly. Loans begat deposits (i.e. money). It is indeed a Wonderful Life. — At least for those who are net deposit owners as opposed to net borrowers.

More like 20 men’s loans equals 1 man’s deposits in fractional reserve banking… In Canada, this could basically be unlimited I suppose, so no need for the deposit even. That’s why you should own Canadian banks kiddos.. ;)

#77 Polecat on 08.31.21 at 7:30 pm

Wealth…my grandaughter turned 1, healthy and happy.

#78 Haas Say Yhoo on 08.31.21 at 7:42 pm

Other people in other provinces may not be driving their vehicles thereby keeping the pollution levels lower however, drivers are driving like there is no tomorrow in the province of Alberta. And, the vehicles being driven are nothing but gas guzzling machines. The worse ones are the gas’s guzzling Diesel engines emitting a poison for those that breath it which remained in the lungs forever.

#79 crowdedelevatorfartz on 08.31.21 at 7:49 pm

@#71 Quintillian’s Quandry

“I have freely chosen to support them in the past only as they are the less of the two evils.”

+++

So it’s the Devil you know rather than the devil you dont.
How bad do they have to be before you vote for another Party?

SNC Lavalin
WE “Charity”
“Grope-gate”
Covid vaxx stumble and Bumble
$500 BILLION deeper in debt in one term.

A conservative serial killer would have a hard time creating as big of a mess that will outlast most of our lifetimes…
I’m curious.
What does the PM have to do for you to not vote for his Party?
Drive the dollar to $0.50 ?

#80 The joy of steerage on 08.31.21 at 7:50 pm

#59 S.Bby on 08.31.21 at 5:35 pm
#53 Stone

Lord knows how many folks smoke dope on the job while wfw.

I’ve seen people who go into the parking lot at work and get stoned and drunk. I’ve also seen them have car sex.


And if you can do all three at once Trump will make you his lawyer….

#81 Cto on 08.31.21 at 7:51 pm

#68 Concerned Citizen
“That’s the time when central bankers served the broader population”
Good comment…

#82 crowdedelevatorfartz on 08.31.21 at 7:52 pm

@#67 BillyBob

“….so any problems will likely be for the Austrians to deal with.”

++++

Amazing, and I thought Ponzie only annoyed the blogdogs.

#83 Garth's Son Drake on 08.31.21 at 7:57 pm

There’ll always be a lineup of people to buy your house for more than you paid when demand outstrips supply.

Supply will always be magically suppressed below real demand. Developers and bankers have the numbers they need to not only access, but manipulate and manage this risk.

Translation = house prices are going to continue going up.

#84 Dolce Vita on 08.31.21 at 8:00 pm

#42 Dolce Gabbana

You will have to ask StatCan.

I can’t comment for them.

But you can tell them yourself. Go to the bottom of this page for the 2nd Qtr 2021 report, hit the “Report a Problem on this Page” then rest you will know what to do:

https://www150.statcan.gc.ca/n1/daily-quotidien/210831/dq210831a-eng.htm?HPA=1

or the June 2021 GDP page:

https://www150.statcan.gc.ca/n1/daily-quotidien/210831/dq210831a-eng.htm?HPA=1

—————-

Also I Commented what I was interested in and thematic to Garth’s Blog today.

You can Comment on what you find interesting as well from the StatCan reports.

Always good to read another take. In this there is learning.

For the record, I shop at Dolce & Gabbana in Milano. Planning another wardrobe rescue mission mid-Sept. Got inspired by Cdns buying clothing in June.

#85 MD on 08.31.21 at 8:09 pm

The central banks have figured it out how to manipulate the economy by fudging the real numbers of inflation and they have become experts in keeping the interest rates artificially low most likely forever in every first world country. Risk is off the table for everyone who has access to debt and free money. The housing or stock market will never ever crash unless interest rates get to 5%. We are all living in good times forever and it does not matter if you are productive or not as long as you are in the chain of the money transfer link. Unfortunately there will be a day hopefully during our lifetime when the borrowing won’t be possible any more even if the interest rate is negative. We will find out how real economics work.

#86 When Will They Raise Rates? on 08.31.21 at 8:21 pm

DELETED

#87 Dolce Vita on 08.31.21 at 8:23 pm

#39 crowdedelevatorfartz

FN, Inuit and Métis people, West to East to the North, have been blasting Trudeau (and TikTok) for the past couple of weeks on Twitter and I mean BLASTING.

You know, their grievances are legitimate to me from what I have read in their Tweets. And they have good reason to be angry at this Government and those that prop it up.

That snub by the 2 FN Chiefs today, predictable.

Yet another broken/failed promise by Trudeau and by proxy, TikTok:

FN RECONCILIATION.

Trudeau’s first non-heckled trip in a long time to Iqaluit yesterday received lukewarm praise. Some Elder comments:

– 1st time in 5 years, “About time.”
– “I think it’s great that we’re not forgotten”

Of course, he jetted in, promised them $2 billion over four years on housing + mental health, etc.

Then jetted out hours later (whereupon he got upstaged by a red squirrel).

https://www.thestar.com/politics/federal-election/2021/08/30/liberals-promise-1b-over-10-years-to-restore-big-lakes-and-river-systems.html

————

If I were FN, Inuit and Métis (I follow at least 2 of each on Twitter) I’d be angry too.

Very angry.

#88 Nonplused on 08.31.21 at 8:34 pm

ruh-oh:

https://mishtalk.com/economics/canadas-gdp-unexpectedly-goes-negative-only-country-in-g7-to-do-so

#89 Yukon Elvis on 08.31.21 at 8:40 pm

#52 That guy on 08.31.21 at 5:17 pm
“#8 S.Bby on 08.31.21 at 2:38 pm
NDP’s Jagmeet Singh promises to get ‘big money out of housing’ during second Coquitlam visit:

https://www.burnabynow.com/local-news/ndps-jagmeet-singh-promises-to-get-big-money-out-of-housing-during-second-coquitlam-visit-4268199”

Populist imbecilities from Singh. Sad that he is so cynical about his fellow Canadians.
Populist imbecilities from Singh. Wish he wasn’t so pessimistic about his fellow Canadians.
Does he have any clue about how this all works? Maybe yes or maybe no, but he says what some voters want to hear.
+++++++++++++
Singh knows exactly what he is saying. He has a degree in science, a degree in law, worked as an attorney for a Toronto law firm, and had his own law practice. He is not stupid. But he knows that promising free stuff and bashing the rich will get him votes from the dim witted. In my view he is a the worst kind of hypocrite just like T2 and should never ever be elected or ever have any kind of authority or power over others.

#90 When Will They Raise Rates? on 08.31.21 at 9:11 pm

DELETED

#91 Outrage on 08.31.21 at 9:15 pm

Our government will continue to spend billions in deficit spending and central banks buying billions in mortgage securities.It seems the USA evection ban is coming to end and Canada didn’t even need one. Our house prices soared higher than the USA because our wages are so much higher and less healthcare cost. Hyperinflation may come this winter. If T2 wins you can kiss Canada goodbye .

#92 Ponzius Pilatus on 08.31.21 at 9:15 pm

#67 Billy Bob

The best part is, the new plant is planned for 60 miles away from Vienna, so any problems will likely be for the Austrians to deal with.

Win-win.
————–
Talking about populist governments.
Environmental policies are made in Brussels.
Poland, Czeck Republic and Hungary are pushing their luck.
With Merkel gone, they will not much longer be playing the mavericks before being kicked out of the European Union.
They could form their own Mini Euro, but with their history, that would not last long, and then it’s back to the Bus, begging for hand-outs.

#93 Shawn Allen on 08.31.21 at 9:15 pm

Banking?

#74 ImGonnaBeSick on 08.31.21 at 7:16 pm
#66 Shawn Allen on 08.31.21 at 6:25 pm
Banking

One man’s loan becomes another man’s deposit. And deposits seldom leave the banking system, they just move around constantly. Loans begat deposits (i.e. money). It is indeed a Wonderful Life. — At least for those who are net deposit owners as opposed to net borrowers.

More like 20 men’s loans equals 1 man’s deposits in fractional reserve banking… In Canada, this could basically be unlimited I suppose, so no need for the deposit even. That’s why you should own Canadian banks kiddos.. ;)

************************************
You are wrong on the workings of fractional reserve which simply requires a bank to keep a bit of their assets in cash as opposed to loans. Each new loan creates a deposit of roughly equal size to the loan. For each bank and certainly for the banks in total, loans are about equal to deposits. The loans create the deposits and not the other way around.

The point is borrowing is creating money all the time. In the first instance the created money is in the account of the borrower. But it tends to immediately get spent into someone else’s account. Often a business account but businesses have owners.

You are however correct that owning bank shares is a great idea. Owning bank shares is far more important than actually understanding the mechanics of money creation. So you are right on that insight indeed.

#94 Ontario on 08.31.21 at 9:35 pm

Garth,

Forgive please, but in the past few days back you allowed a post that later on confused people and the one with the link didn’t go through.

crowdedelevatorfartz, SoggyShorts, others were confused. In the interest of transparency, consider letting this post go through of the official published study that details the evaluated Lambda mutation that gives it resistance to antiviral immunity.

PDF of fully study
https://www.biorxiv.org/content/10.1101/2021.07.28.454085v1.full.pdf

Main landing page with summary.
https://www.biorxiv.org/content/10.1101/2021.07.28.454085v1

Just to not irritate Garth on the subject, pease everyone, don’t reply with post. Just read if you wish, review, learn.

#95 Yukon Elvis on 08.31.21 at 9:37 pm

Canada’s GDP Unexpectedly Goes Negative, Only Country in G7 to Do So
Canada’s GDP unexpectedly went negative for the second quarter following huge monthly negative revisions with no explanation.

Statistics Canada reported Tuesday that the country’s gross domestic product — the total value of all goods and services sold — declined in the second quarter. It’s the first time since the initial recovery from COVID-19 began last summer that the economy shrank for an entire quarter.

Economist Doug Porter with Bank of Montreal described the GDP numbers as “shockingly weaker than expected,” noting that the preliminary estimate for July suggests the economy shrank during that month too.

“Remember all the commentary about how well the Canadian economy had dealt with the third wave restrictions during the spring? And how businesses and consumers had learned how to operate amid the virus? Well, the reality appears to have been much less constructive,” Porter said.

https://mishtalk.com/economics/canadas-gdp-unexpectedly-goes-negative-only-country-in-g7-to-do-so

#96 Ponzius Pilatus on 08.31.21 at 9:39 pm

Further to Austria:
I don’t follow Austrian politics much.
After all I’m living in Canada, and I have my live and many friends here.
Unlike Dolce, who is Canadian and lives in Italy and is engrossed with Canadian politics and events.
Strange.
But I read that Austrian Chancellor Sebastian Kurz, who is no Socialist by any means, is a proponent of a quaranteed montly income.

#97 45north on 08.31.21 at 9:48 pm

Do we have all the facts

In short average disposable household income will probably shrink in the coming years and it seems certain that average house prices will follow. Any increase in mortgage interest rates will only accelerate this downward trend.

there’s going to be a housing bust. On the one hand you can say that housing prices will experience a long-term decline based on the factors you say but on the other hand there’s a lot of emotion. Emotion like fear and panic.

Garth says that the debt is increasing at three times inflation. I’d say that the present housing prices are being sustained by the increase in debt. When debt can no longer increase like it has then housing prices will crash.

#98 Dolce Gabbana on 08.31.21 at 9:58 pm

#82 Dolce Vita

For the record, I shop at Dolce & Gabbana in Milano. Planning another wardrobe rescue mission mid-Sept. Got inspired by Cdns buying clothing in June.

—–

Dolce,

I hear what you’re saying. They will probably claim some revision or magic and reverse that -0.4% drop in July. Who knows? I don’t know if I trust any information out there.

In general I’m fascinated by the consumerism of humanity, and even more so in this time of fear. My Mom always said “you can’t take it with you!” Yet we can’t get enough of crap. Also, we make so much useless crap. And the crap is so crappy…hardly lasts, by design of course.

But alas, Milan. Oh boy, it’s been so long for me. I was there to hang out, but also to see the new Ferrari store open and VIP to Monza for the last Italian Grand Prix with the amazing engines of the time before the new greenwashing formula replaced it. Then it was onto Maranello to the Museum, Montana next door for dinner, then onto Venezia for a few days and nights before heading off to Germany and Belgium for the Belgian Grand Prix – which was amazing and not at all the 2-lap farce we witnessed this past weekend. Formula 1 has truly become a joke. So sad.

But anyhow, my long story is simply to confirm what you are saying. Europe is beautiful. Italia is amazing.

Finally, don’t be feeling safe with that Digital Green Pass of yours Dolce. All these passes have become a political tool and not a scientific one is appears. Hopefully I’m wrong, but you be smart and stay safe. Maybe go to D&G store early on a Tuesday before all the tourist mouth breathers start frolicking around.

#99 Smoking dope on 08.31.21 at 10:00 pm

DELETED

#100 Do we have all the facts on 08.31.21 at 10:02 pm

#81 Garths Son Drake

You can’t create demand for over priced assets out of thin air. Demand for any asset depends upon income and the reality is that average incomes in Canada are declining when real inflation is taken into consideration.

Stress tests used by financial institutions are currently based on a 5.25% mortgage rate and the number of potential buyers that can qualify at 5.25% is decreasing daily as inflation increases.

The upcoming increases in assessment based property taxation will definitely reduce the number of potential home buyers at current price levels.

The decision by the Federal government to substantially increase immigration targets without offering incentives to construct affordable housing in major urban centres seems short sighted. Having said that it must be acknowledged that the 68% of households that currently own their homes have very little interest in constructing affordable housing supported by government.

We have painted ourselves into a corner where the only way out seems to be a substantial reduction in average house prices across the board. Our governments just don’t have the ability to stop the decline in average house prices without fuelling double digit inflation. The interest rate imposed by the Bank of Canada in 1980 was not a fairy tale. Without substantial increases in average net income demand for housing at current prices will fall. Substantial wage increases will increase inflation and force an increase in interest rates and lead to a subsequent reduction average house prices.

The government toolbox is all but empty and it is time for an honest examination of our future. Continued increases in the average price of housing across Canada is anything but the certainty you describe.

#101 cuke and tomato picker on 08.31.21 at 10:02 pm

In the summer of 2000 I had the opportunity to buy a vending machine business at a call center that was just starting up in Penticton B.C. The HSBC bank was prepared to lend me the money basically on the spot I was still working so I declined the purchase. Then in March of 2003 the the same business came up for sale I was now retired so I decided to buy however the HSBC now wanted something to secure the loan. The rules had changed because of the dot com down fall. We bought the business and and did very well because
they ramped up to 700 employees 24 hours a day.

#102 crowdedelevatorfartz on 08.31.21 at 10:07 pm

@#85 Dolce.
“ou know, their grievances are legitimate to me from what I have read in their Tweets. And they have good reason to be angry at this Government and those that prop it up.

That snub by the 2 FN Chiefs today, predictable.

Yet another broken/failed promise by Trudeau and by proxy,”

++++

Check out the video at #39 again.

The 2 FN Chiefs blindsided NDP leader Jaggy Singh at HIS rally in manitoba.

They walked up to the NDP rally mike and supported the LIBERAL candidate

#103 crowdedelevatorfartz on 08.31.21 at 10:10 pm

@#93 Yukon Gold

“Canada’s GDP Unexpectedly Goes Negative, Only Country in G7 to Do So
Canada’s GDP unexpectedly went negative for the second quarter following huge monthly negative revisions with no explanation.”

******

Yep.
Canada posted a 1.1% drop in economic activity in the second quarter and when asked about it Trudeau prattled on about how Canada is “growing back stronger”.

Delusional, bizarre or just another politician that says the same lie over and over and over again and the sheeple nod their heads as they graze on free grass……

#104 Sail Away on 08.31.21 at 10:14 pm

#94 Ponzius Pilatus on 08.31.21 at 9:39 pm

I don’t follow Austrian politics much.

After all I’m living in Canada, and I have my live and many friends here.

———-

I see you’re playing the party game ‘Three truths and a lie’ with us.

#105 Nine Eleven on 08.31.21 at 10:22 pm

Re #84 that you allowed to go through to show what conspiracies can do.

This wasn’t really that crazy Garth. Crazy is microchips in vaccine. Crazy is politicizing science or dismissing valid published science due to inconvenience of that science, which is something that is happening a whole lot lately.

As we approach the 20th anniversary of events of 9/11, I want to remind you what followed. Please don’t forget how quickly things went loose and wild as public was shocked at planes flying into buildings. Civil liberties took a back seat. Guantánamo Bay, where the free country of laws and order detained people for decades without either. Over a decade later Snowden revealed how deep the rabbit hole goes.

We value our freedoms, rights, liberties. I agree with you fully that responsibility goes along with it. However, as intelligent thinking humans we certainly can find a way to respect those freedoms, rights, liberties and achieve our goals. It’s what makes our land great.

I for one have a very hard time with the divisive methods that render freedoms, rights, liberties as null and void because we’re too lazy or unimaginative to come up with better solutions, which don’t. I blame our leadership for this to be honest. Great leaders would have found a way. First and foremost, great leaders would have earned trust.

Not only our leaders but leaders of key International organizations have been a real disappointment in the truth and trust departments. And in absence of truth and trust the vacuum is filled.

They aren’t intelligent enough to coach a little league team, never mind lead nations, national efforts or world wide ones.

Not an excuse for us to not play as a team, but certainly a reason to question them.

#106 crowdedelevatorfartz on 08.31.21 at 10:43 pm

Anyone notice the 338Canada poll site isnt showing Liberal numbers.
If you try and look at the National numbers comparing the Libs, Cons, Ndp ….. the “site is unavailable”
Also
If you just want to look at the Liberal numbers …..the “site is unavailable”

The Conservative numbers and the NDP numbers are up……

Who’s causing this and why?

#107 BillyBob on 08.31.21 at 10:45 pm

#90 Ponzius Pilatus on 08.31.21 at 9:15 pm
#67 Billy Bob

The best part is, the new plant is planned for 60 miles away from Vienna, so any problems will likely be for the Austrians to deal with.

Win-win.
————–
Talking about populist governments.
Environmental policies are made in Brussels.
Poland, Czeck Republic and Hungary are pushing their luck.
With Merkel gone, they will not much longer be playing the mavericks before being kicked out of the European Union.
They could form their own Mini Euro, but with their history, that would not last long, and then it’s back to the Bus, begging for hand-outs.

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

Pretty funny how you take a shot at Dolce for expressing opinions on things outside of Italy while you’re busily making completely ignorant comments about things outside of Canada hahah! You say you don’t follow Austrian politics, but you know all about these other countries. Yeah, that makes sense.

The Polish are busily banning abortions and Orbán is slightly right of Satan, but you don’t have a clue about the Czechs – you can’t even spell it. There’s a reason your man H wanted Czechoslovakia – it was and is a manufacturing powerhouse and he wanted the materiel. Pretending that Czech Republic is in danger of leaving the EU, why would they form a mini-Euro to trade? You do know they don’t use the Euro now, right? lol Jaký idiot.

Oh, and EU environmental policies are one thing, but energy policy is still decided by individual members nations. But don’t worry, I’m sure the new nuke plant will meet all emissions standards. :-)

#108 Sunshowers on 08.31.21 at 10:51 pm

Take a look at this.

New research from Harvard has led to a paper from the National Bureau for Economic Research concluding that income inequality is CAUSING low interest rates, not being CAUSED BY them. We’ve confused the symptom for the disease. The number one fix? Redistributive measures.

https://www.businessinsider.com/wealthy-economic-inequality-federal-reserve-real-interest-rates-study-2021-8?amp

https://www.kansascityfed.org/documents/8337/JH_paper_Sufi_3.pdf

https://scholar.harvard.edu/straub/publications/indebted-demand

https://scholar.harvard.edu/straub/publications/saving-glut-rich-and-rise-household-debt

US data. Irrelevant. – Garth

#109 Shawn Allen on 08.31.21 at 10:54 pm

GDP measurement and the decline.

Don’t freak. Keep in mind those are just estimates and are seasonally adjusted. There are past revisions as someone noted. Of course! That’s because of the estimates and they get better numbers later. A lot of moving parts. And an economy rocked down and then up with the pandemic closings and openings. Take all that with a grain of salt. A lot of room for error in those estimates. Look at a trend over a few months.

#110 the jaguar on 08.31.21 at 11:20 pm

@93 Yukon Elvis…..
OIL= GDP. Go figure.
Revenge as always will be a dish best served cold.
Speaking of that, where is the old Hobgoblin with evidence of his ‘recent’ accusations? Must have dozed off, lol.

DonG: will figure out a connection before you take off in November. I am not so far from Marda Loop.

#111 the jaguar on 08.31.21 at 11:26 pm

PS…don’t usually like to see dogs etc. ,dressed up, but his ears are kept warm. A very sweet face that dog Kilo has….
There is one dog photo that has been M.I.A for some time now……….

#112 Ponzius Pilatus on 09.01.21 at 12:39 am

Another problem with EVs.
While most of them can pull the same size trailers as the gas cars, “filling up” can be a problem because most EV stations are not drive-throughs.
The trailer would stick out, and you’d have to uncouple it.
Not very practical.
Something to think about before buying a Tesla.

#113 Nonplused on 09.01.21 at 1:10 am

Is it me or did he go to great lengths to not answer the question?

https://www.youtube.com/watch?v=Jdvsa4Xztno

#114 Ponzius Pilatus on 09.01.21 at 1:34 am

In the flood plain and earthquake zone called Richmond, house prices in the first half of 2021 were still going bonkers.
Boggles the “critical thinking” mind.
——————————
Home prices in Richmond are on the rise despite the fact the COVID-19 pandemic is still on-going.
The average price of a single-family home in Richmond this spring was about $1.9 million – up 26 per cent from a year before. This is slightly higher than the Metro Vancouver average home price index (HPI), which was about $1.8 million in the same time period.
These figures are included in a report going to city council’s finance committee next week as city council meetings start up again after the August break.
Townhomes averaged $923,500 in the second quarter of 2021, which was 17 per cent more than last year at the same time, and apartments were averaging $718,300, up 10 per cent from last year.

#115 Under the radar on 09.01.21 at 5:44 am

I’ve seen a few rural residential properties(recreational) sold for big money which have captured the market run up . All of these properties had substantial acreage and homes that were largely updated. These types of properties, have become increasingly valuable as urban density and suburban sprawl create a premium for private space. People who paid pandemic premiums for rural property without the acreage will be in for a reckoning .

#116 Shank hand Luke on 09.01.21 at 5:56 am

Green Crazies ( Biden-Trudeau) want to decarbonize the economy, just not now when we need the energy. Apparently by 2030 we’ll all be living on clouds. So they beg OPEC for oil, while adamantly killing Canadian business and jobs. Make sense?

OPEC set to go ahead with production increase, but Washington wants more oil.

#117 Steven Rowlandson on 09.01.21 at 7:26 am

Bankers, realtors and home owners would do well to remember that all glory is fleeting and that they are mere mortals.

#118 Lessons learned on 09.01.21 at 7:49 am

I’m a little older and have some experience in RE, so be warned.

In the roaring late 1980’s, I built a new 1800 Sq/ft house about 18 miles outside a fairly large SW Ontario city. After construction I hired a certified appraiser who valued it at $189K. My cost was $150k

2 yrs later I put it for sale at the appraised value. But, a recession had just started. I could not sell it for anywhere near the appraised value, so I stayed in it because it was debt free and it was a new maintenance free house.

I finally sold it in 2001 (11 years later) for $150k or $40K below the professional value.

WARNING – you can get stuck with RE.

#119 the Jaguar on 09.01.21 at 8:03 am

Interesting snippet about the french language debate:

” the interviews actually featured six political leaders, not five. Quebec Premier François Legault wasn’t there in person, but he was the elephant in the room. A couple of days previously, he had issued his election list of “demands” for Quebec and pronounced the Liberal and NDP platforms “much more centrist” than those of their rivals, notably on the issue of health care. While Legault’s remarks could boost the Bloc Québécois, the Tories might actually gain the most by appearing to be a safe harbour for soft-nationalist votes, particularly in tight races with the Bloc around Quebec City.”

Legault is very popular, but Quebecers will separate provincial from federal like the white from the yoke in my opinion. I see the Conservatives doing quite well in P.Q.

Garth, what’s this business about ‘Fallen Angels’ that Rosenberg is writing about in this mornings N.P.?
It sounds so biblical…

#120 MEDIA LIES on 09.01.21 at 8:12 am

DELETED

#121 crowdedelevatorfartz on 09.01.21 at 8:12 am

@#112 Powercharger Ponzie

“Another problem with EVs.
While most of them can pull the same size trailers as the gas cars, “filling up” can be a problem because most EV stations are not drive-throughs.”

+++

I read an article the other day that Electric car manufacturers are looking to solve the “charge time” prob by increasing the batteries from 400volts to 800 volts.
15 minutes to get a 80-90 % charge depending on the ambient temp.
Another 5 or 10 years when they have all the bugs worked out and crowdie may actually buy an electric vehicle….self driving of course.

#122 Dharma Bum on 09.01.21 at 8:22 am

#61 S.Bby

I’ve seen people who go into the parking lot at work and get stoned and drunk. I’ve also seen them have car sex.
———————————————————————————

Quit stalking me.

It was all I could ever do to get through a miserable work day.

#123 crowdedelevatorfartz on 09.01.21 at 8:26 am

338Canada site appears to be back up.

Cons slowly pulling ahead.

Win or lose Trudeau better watch his back.

#124 Phylis on 09.01.21 at 8:30 am

#106 crowdedelevatorfartz on 08.31.21 at 10:43 pm
Anyone notice the 338Canada poll site isnt showing Liberal numbers.
If you try and look at the National numbers comparing the Libs, Cons, Ndp ….. the “site is unavailable”
Also
If you just want to look at the Liberal numbers …..the “site is unavailable”

The Conservative numbers and the NDP numbers are up……

Who’s causing this and why?
Xxxxxxxxxxx
Liberal supporters solving a problem by hitting the refresh button frequently. That’s the best idea they have to improve their position.

#125 Dharma Bum on 09.01.21 at 8:34 am

#87 Dolce Vita

If I were FN, Inuit and Métis (I follow at least 2 of each on Twitter) I’d be angry too.
———————————————————————————

Really?

If some twerp jetted in to placate me with a couple of billion bucks for stuff I’ve been griping about, and then buggered off again, I’d be tickled pink.

#126 TurnerNation on 09.01.21 at 8:40 am

The future. The Long Game. Being revealed.

– The WHO releases global digital Vaxport specs.
Yes the Blockchain was built for us.

https://www.who.int/publications/i/item/WHO-2019-nCoV-Digital_certificates-vaccination-2021.1
Digital documentation of COVID-19 certificates: vaccination status: technical specifications and implementation guidance, 27 August 2021

——- While you were distracted by the numbers on the telescreens…the prison walls were going up. Now you know why each country is following the same path. The Long Game. Every ruler is on board. Go ahead, vote.

…………..

— Control over travel/movement. Everyone I know is travelling like crazy – wherever they can – until the next phase of the Global Digital Lockdown is rolled out
Some openly say they no longer believe the numbers on the telescreens.

**It is appearing that CV is a permanent state** a new world order – but who could have forseen that eh.
You will be wearing Your Mask until 2025. Smile.

.EU removes US from safe-travel list due to Covid-19 case surge (rt.com)

..Backlogs continue to plague Ontario’s DriveTest centres (cbc.ca)

.Edmonton mask mandate for indoor, public places to be reinstated Friday(edmontonsun.com)

.Hawaii Lt. Governor proposes 72-Hour stay-at-home order over Labor Day weekend (wfla.com)

#127 SunShowers on 09.01.21 at 9:33 am

“US data. Irrelevant. – Garth”

Ah yes, how careless of me to forget that Canada doesn’t have widespread inequality, and most crucially, Canada doesn’t have a central bank which has set interest rates at historic lows.

#128 crowdedelevatorfartz on 09.01.21 at 9:55 am

Gee it looks like the new Liberal candidate Taleeb Noormohhamed in the Vancouver Granville riding ( Jody Wilson Raybould chose not to run again as an Independent) is getting chased by his “house flipping” reputation….

https://www.citynews1130.com/video/2021/08/31/vancouver-liberal-candidate-avoids-questions-on-principal-residence-tax-exemption-use/

I guess the Million dollar questions is…..

Will the Liberal voters in a safe Liberal seat hold their nose and vote for a candidate who is so blatantly the opposite of what he preaches ( about “housing affordability for all”……?

#129 crowdedelevatorfartz on 09.01.21 at 10:00 am

@#119 the Jaguar

“Interesting snippet about the french language debate:”

+++
There will actually be two french language debates and one english debate this election.

Odd, but there it is.

#130 Slim on 09.01.21 at 10:14 am

Remember when Israel was a leader in Covid vaccinations. Now Israel has the highest 7-day rolling average of new daily coronavirus cases per million people.

This is what can happen when Covid restrictions are removed too quickly. Like Alberta, which is leading in Canada for daily cases.

We still have too many people running around who would rather take horse de-worming medicine for Covid.
For example, CO-OP feed stores have been inundated with calls asking about Ivermectin. Mostly in Kenney country.

https://www.cbc.ca/news/world/israel-covid-delta-variant-booster-1.6159472

#131 crowdedelevatorfartz on 09.01.21 at 10:31 am

My my my

Cape Breton , Nova Scotia.

The Liberal/ NDP bastion of Liberal major domo advisor to Justin Trudeau ….Gerald Butts…… is leaning Harrrrd to the Conservatives.

Apparently even the perpetual “welfare state” of Cape Breton has had enough of Justin’s endless, gender neutral, money for nothing, debt ballooning, lecturing b.s.

What will another 2.5 weeks of Liberal “woke” pablum bring?

School season is cranking up as are Covid cases…..

Get ready for another Fall and Winter lock down folks and…….

Vote accordingly.

:)

#132 Ponzius Pilatus on 09.01.21 at 10:48 am

121 crowdedelevatorfartz on 09.01.21 at 8:12 am
@#112 Powercharger Ponzie

“Another problem with EVs.
While most of them can pull the same size trailers as the gas cars, “filling up” can be a problem because most EV stations are not drive-throughs.”

+++

I read an article the other day that Electric car manufacturers are looking to solve the “charge time” prob by increasing the batteries from 400volts to 800 volts.
15 minutes to get a 80-90 % charge depending on the ambient temp.
Another 5 or 10 years when they have all the bugs worked out and crowdie may actually buy an electric vehicle….self driving of course.
————————-
Bigger batteries = bigger fires.
Self driving?
So after all the sweat and tears and saving, no chauffeur in your future?
What you gonna do with all your money?
Any room for uncle Ponzie on your will?

#133 Quintilian on 09.01.21 at 11:00 am

#100 Do we have all the facts:
“We have painted ourselves into a corner where the only way out seems to be a substantial reduction in average house prices across the board.”

True, and the politicians know this.

The politicians had hoped that some external “Black Swan” event would puncture the bubble, and they would not have to face the wrath of the working stiffs who won the real estate lottery.

As it turned out the “Black Swan” didn’t do the clean up for them, but actually aggravated the problem to an extreme level.

‘Oh what a tangled web we weave/When first we practice to deceive’

#134 Jane Finch on 09.01.21 at 11:19 am

Re: 130 Slim. Yes, where the hell are the Covid Updates from our health professionals now that Covid -4 Delta case numbers are shooting up? Has Dr. Teresa Tam ( our expert) gone into Witness Protection? How convenient. Did the Covid take a holiday so Mr Trudeau doesn’t have to stray into those 30,000 +/- deaths not yet apologized for while the flag is still at half mast over Canada’s systemic racism? That subject might not be happy talk for Mr Trudeau now that his poll numbers are in the toilet. There’s no Defeat Covid Plan in the Liberal Platform. Huh? There’s only another 80 dollar deficit add on the Liberals say is paid for by a “ windfall recovery” revenue. I guess they didn’t count on the BOC report of an economy in free fall.

#135 The joy of steerage on 09.01.21 at 11:27 am

The former attorney general sticking it to T2…. the faux-feminist is going down.

https://twitter.com/Puglaas/status/1433062401654472715?s=19

#136 @slim on 09.01.21 at 11:30 am

DELETED

#137 Sail Away on 09.01.21 at 11:32 am

#130 Slim on 09.01.21 at 10:14 am

Remember when Israel was a leader in Covid vaccinations. Now Israel has the highest 7-day rolling average of new daily coronavirus cases per million people.

This is what can happen when Covid restrictions are removed too quickly. Like Alberta, which is leading in Canada for daily cases.

———-

No, this is what happens when there is an infectious coronavirus. Full stop.

We’re all going to catch it, so just suck it up and make sure your body is as prepared as it can be. Quit with the blame game. Just accept.

Yes, some will have bad reactions. Yes, some will die. Most will be fine. That’s life. Nobody’s fault.

#138 Slim on 09.01.21 at 11:38 am

134 Jane Finch

You got that right! Trudeau needs to go!

#139 James on 09.01.21 at 11:39 am

#102 crowdedelevatorfartz on 08.31.21 at 10:07 pm

@#85 Dolce.
“ou know, their grievances are legitimate to me from what I have read in their Tweets. And they have good reason to be angry at this Government and those that prop it up.

That snub by the 2 FN Chiefs today, predictable.

Yet another broken/failed promise by Trudeau and by proxy,”

++++

Check out the video at #39 again.

The 2 FN Chiefs blindsided NDP leader Jaggy Singh at HIS rally in manitoba.

They walked up to the NDP rally mike and supported the LIBERAL candidate
__________________________________________
I don’t trust Justin Trudeau at all he is a scheming conniving @#@%#. Canadians need to get him to account for this debacle.

https://www.cbc.ca/news/politics/margaret-justin-trudeau-we-charity-1.5643586

#140 James on 09.01.21 at 11:43 am

#128 crowdedelevatorfartz on 09.01.21 at 9:55 am

Gee it looks like the new Liberal candidate Taleeb Noormohhamed in the Vancouver Granville riding ( Jody Wilson Raybould chose not to run again as an Independent) is getting chased by his “house flipping” reputation….

https://www.citynews1130.com/video/2021/08/31/vancouver-liberal-candidate-avoids-questions-on-principal-residence-tax-exemption-use/

I guess the Million dollar questions is…..

Will the Liberal voters in a safe Liberal seat hold their nose and vote for a candidate who is so blatantly the opposite of what he preaches ( about “housing affordability for all”……?
___________________________________________

“All animals are equal, but some animals are more equal than others.”
― George Orwell, Animal Farm

#141 IHCTD9 on 09.01.21 at 11:50 am

Post-Trudeau New Canada requires a different head-space than the Old Canada did. The biggest change is my concern over the future prosperity of Canadians is now just a waste of time. It’s only going to get worse, and there is no rearranging the floor plan now that it has been set and lagged down by the Libs.

It’s now a slow, one-way trip to pretty much a garbage country that exists only for the rich, and for the poor. Trudeau has got the new system off and running with a Trillion worth of debt, and housing prices 99% of Western lifestyle living, normal paycheque Canucks could never afford.

So what to do? Well, you “New-Canada” Canucks will have to figure that one out for yourselves. I quit giving a rip last year because it don’t matter who wins going forward. The damage is just too great for anyone to realistically fix. The whole idea of prosperous future Canadians basically died in 2020.

As for me, I’m down sizing, and I’m thinking about buying a fishing boat. Likely for small water, but I am also “lured” by great lakes salmon and trout fishing too (I’ve never done this kind of fishing), which would require something a little bigger. Something like a StarCraft Islander would be perfect I think. (I’m taking recommendations).

The next election I’ll probably know less than I’ve ever known about the candidates and issues, I’ll look up how much was spent, how big the debt is, check rates, house prices, inflation, consumer debt etc… If its all still basically the same, I’ll vote Con and head back to the Marina…

#142 Brett in Calgary on 09.01.21 at 11:56 am

#130 Slim on 09.01.21 at 10:14 am
Remember when Israel was a leader in Covid vaccinations. Now Israel has the highest 7-day rolling average of new daily coronavirus cases per million people.

This is what can happen when Covid restrictions are removed too quickly. Like Alberta, which is leading in Canada for daily cases.
———————————–
This has nothing to do with removing restrictions, but is simply a reflection of a seasonal virus beginning to pick up steam. Besides there is very little evidence that lockdowns, or masks do anything to stop the transmission of influenza-like viruses. The WHO can’t even bring themselves to take down their Nonpharmaceutical Interventions (NPI) document, because it’s still true. Here’s the link.

https://apps.who.int/iris/bitstream/handle/10665/329438/9789241516839-eng.pdf?ua=1

People have to get used to the fact that COVID is now endemic, and will be around forever. Please get vaccinated so you don’t end up with a super serious case of it. Eventually, you WILL get COVID-19 or one of it’s offspring regardless of NPIs.

#143 Sail Away on 09.01.21 at 11:57 am

On the investing side, North American markets are popping. They seem to be disregarding Covid and Canadian politics (big surprise, that last one). Lots of big moves.

In the last couple of weeks, the mining sector has popped 9% or so, CN and CP Rail continue their tussle over Kansas City Southern with exciting volatility, and both Blackberry and Sypris pulled another meme stock move by jumping 20% in a day.

Exciting times.

#144 Sail Away on 09.01.21 at 12:20 pm

Remember Warren Buffett’s investing direction for an inflationary environment:

The areas that do best are discretionary consumer items that can immediately raise sales price to offset increased costs. The areas that suffer are operations with significant ongoing costs and less-flexible sales prices.

So… extrapolating…

For the win: booze/coffee/soda, vehicles, toys
For the hold or trim: railroads, miners, utilities

#145 IHCTD9 on 09.01.21 at 12:32 pm

#128 crowdedelevatorfartz on 09.01.21 at 9:55 am
Gee it looks like the new Liberal candidate Taleeb Noormohhamed in the Vancouver Granville riding ( Jody Wilson Raybould chose not to run again as an Independent) is getting chased by his “house flipping” reputation….

https://www.citynews1130.com/video/2021/08/31/vancouver-liberal-candidate-avoids-questions-on-principal-residence-tax-exemption-use/

I guess the Million dollar questions is…..

Will the Liberal voters in a safe Liberal seat hold their nose and vote for a candidate who is so blatantly the opposite of what he preaches ( about “housing affordability for all”……?
_____________

From the link:

“But as Kier Junos reports, he avoided questions on how exactly he declared his dozens of properties on his taxes.”

Yeah, the CRA better look into this goof. There is only one singular reason a guy would dance around that line of questioning…

If he declared them all as PR’s, question #2 is how the hell did the CRA not catch this?

I’ll be following this one.

#146 Don Guillermo on 09.01.21 at 12:40 pm

#110 the jaguar on 08.31.21 at 11:20 pm
@93 Yukon Elvis…..
OIL= GDP. Go figure.
Revenge as always will be a dish best served cold.
Speaking of that, where is the old Hobgoblin with evidence of his ‘recent’ accusations? Must have dozed off, lol.

DonG: will figure out a connection before you take off in November. I am not so far from Marda Loop.
*******************************************
Sounds good. I leave early October.

#147 crowdedelevatorfartz on 09.01.21 at 12:58 pm

@#132 Ponzies Potential Payout

“What you gonna do with all your money?
Any room for uncle Ponzie on your will?”

++++

Alas Ponzie.
I’ve wracked my pea sized brain for a worthy recipient and you have given me the answer.

I shall bequeath all of my vast estate and holdings to the Austrian School of Economics … Etiquette Class.
To teach future generations the “art” of civility and manners….
:)

#148 Nonplused on 09.01.21 at 1:57 pm

#127 SunShowers on 09.01.21 at 9:33 am
“US data. Irrelevant. – Garth”

Ah yes, how careless of me to forget that Canada doesn’t have widespread inequality, and most crucially, Canada doesn’t have a central bank which has set interest rates at historic lows.

—————————————

Canada does not have “widespread inequality”. Inequity is the word you are looking for. Equality is equal opportunity or a level playing field, inequity is the new word for differing results or outcomes.

Unfortunately there isn’t a real good way to address inequity. All the runners get equality at the race, but only one is going to win. Other than banning races, I don’t know how you get around that.

#149 NoName on 09.01.21 at 2:32 pm

#132 Ponzius Pilatus on 09.01.21 at 10:48 am
121 crowdedelevatorfartz on 09.01.21 at 8:12 am
@#112 Powercharger Ponzie

“Another problem with EVs.
While most of them can pull the same size trailers as the gas cars, “filling up” can be a problem because most EV stations are not drive-throughs.”

+++

I read an article the other day that Electric car manufacturers are looking to solve the “charge time” prob by increasing the batteries from 400volts to 800 volts.
15 minutes to get a 80-90 % charge depending on the ambient temp.
Another 5 or 10 years when they have all the bugs worked out and crowdie may actually buy an electric vehicle….self driving of course.
————————-
Bigger batteries = bigger fires.
Self driving?
So after all the sweat and tears and saving, no chauffeur in your future?
What you gonna do with all your money?
Any room for uncle Ponzie on your will?

Bigger everything bigger vare and tare on vehicle and pavment, and of course bigger repair bills, that is where farts money will be going. “Poor” dude will have to cut down on single malt, and join me in cheap burbon gutters, what. Ill happened to me to, but that’s a life i gues…

Runn of the mill mediocre elecchiken what is 95% of us license stops at 750V, and high voltage guys take over that voltage. If that will happen i cant wait to see complexity of education of people that will be fixing those cars.

On one hand you’ll have circuit boards for “onboard AI” where you deal with very tiny signals, currents, voltage and frequencies in multi gigahertz range, where even shape or leinght connecting conduit on circuit board can distort, advance or delay signal and cause mailfunction. And dc electric motor/battery that if ever fail funny can create enough current and very strong magnetic field that can fuse or make things levitate.

One thing is for sure, whole new industries are to be created just around electric car.

If people think its expensive to repair car now just wait when requirements for future car mechanic, mechanical uptitude, electrical electronics components trouble shooting and understanding all those lines of codes that. Yes some high level diagnostic/repair tools will be created, but so will new high diagnostic fees.

Now days thay thay have hard time trouble shoting signal return broken wire (loose connection on connector) from oxygen sensor, i can just imagine horrors when some bit somewhere flipps early or late.

I deal with very similar $#!7 on daily basis, what makes me some kind of SME, so there is a some chance that i know what I am talking about.

On a trailer subject.
There is a write up about some lady in her expensive tesla, one with funny opening door, pulling a small camping trailer and getting 130 milles per charge out of 500…

#150 yvr_lurker on 09.01.21 at 4:12 pm

#148
Canada does not have “widespread inequality”.
All the runners get equality at the race, but only one is going to win.

——–
Although we are likely of the same age group, I am not sure what planet you live on, but over the past decade it has become crystal clear to many of us that there is not a level playing field for the younger generation and in our major cities. For those born on third base, where the parents gifts large sums or houses (due to the boomer parents winning the housing lottery), they will be miles ahead financially of those talented kids who start from the bottom ladder sans family resources. Shouldn’t be this way, and this issue has become more prominent in the past 10 to 15 years. Unlike you, I don’t like in Lalaland pretending that we are all born with a roughly equal
shot at success.

And about that “we are at peak tax” mantra that you put with almost every message, I fear you have not seen anything yet it the Liberals get into power. They are coming for many of us.

#151 That guy on 09.01.21 at 5:00 pm

#89 Yukon Elvis on 08.31.21 at 8:40 pm
#52 That guy on 08.31.21 at 5:17 pm
“#8 S.Bby on 08.31.21 at 2:38 pm
NDP’s Jagmeet Singh promises to get ‘big money out of housing’ during second Coquitlam visit:

https://www.burnabynow.com/local-news/ndps-jagmeet-singh-promises-to-get-big-money-out-of-housing-during-second-coquitlam-visit-4268199”

Populist imbecilities from Singh. Sad that he is so cynical about his fellow Canadians.
Populist imbecilities from Singh. Wish he wasn’t so pessimistic about his fellow Canadians.
Does he have any clue about how this all works? Maybe yes or maybe no, but he says what some voters want to hear.
+++++++++++++
Singh knows exactly what he is saying. He has a degree in science, a degree in law, worked as an attorney for a Toronto law firm, and had his own law practice. He is not stupid. But he knows that promising free stuff and bashing the rich will get him votes from the dim witted. In my view he is a the worst kind of hypocrite just like T2 and should never ever be elected or ever have any kind of authority or power over others.

——————-
I totally agree with you there about Singh never being elected. Fingers crossed Sept 20!!