Feeding the beast

Along with unveiling its snappy new logo (now being built into the exterior of its snappy new Toronto skyscraper), CIBC’s throwing the covers off our housing market’s nepotistic little helper. Yes, the Bank of Mom.

There are two big takeaways from bank economist Benny Tal’s shocking new report. First, parents are clearly behind rising property values that have created Generation Squeeze. And, second, many oldies are gutting their own retirement plans in the process. Neither of these seem to be elevated social goals. Oh well. Don’t mess with Mom.

So here are the facts: One in three newbie buyers gets his/her down payment from the BoM, and the sum is growing fast. In Toronto it now averages $130,000 and in Vancouver $180,000. Serious money, which has paced (and contributed to) house price growth.

Even more arresting is the surprise that one-in-10 move-up buyers taps parental cash. In the GTA a needy (but wanting) adult offspring collects an average of $200,000 and in YVR it’s a stunning $340,000. Also significant: two-thirds of all first-time kiddo buyers say the Mom money represented “the primary source” of the down payment. In other words, they’re buying houses with virtually no money saved and 100% financing.

So is it a big surprise we have this – Bank of Mom funds chasing swollen house prices? Or are real estate values being pushed higher by wealthier families injecting money into the hands of kids who otherwise would rent, or wait?

Mom cash  & house inflation  feeding each other?

Says Benny: “Given the trend and size of gifting, it is clear that this phenomenon is becoming an important factor impacting housing demand and therefore home prices in Canada. As for the impact of wealth inequality, clearly gifting acts to narrow somewhat the wealth gap between gifting and non-gifting parents. At the same time, however, gifting clearly works to widen the gap between receivers and non-receivers.”

So much for public efforts to make housing more affordable. Mom is making it worse.

But there’s more. The bank also figures the BoM is responsible for at least 10% of all real estate down payments in Canada, with most of the $10 billion coming out of parental savings. That is an astonishing pile of dough, transferred from financial assets, which can support parental retirement, and into a single asset – residential real estate – where it will generate no income and be associated with big leverage in a time of rising interest rates.

Is this making our society and economy even more dependent on a single asset class which is fueled by emotion, hormones, house lust, FOMO and financial illiteracy? Well, maybe. Are wealthier parents helping to inflate real estate to the point where less fortunate families are locked out? Without a doubt. Is our economic dependence on housing a ticking time bomb as the conditions which fueled the recent bloat – pandemic, 2% loans and WFH – eventually fade from view? This is a risk for all. Will it stop? Not a chance.

We reap what we sow.

?     ?     ?

Time for the Investment Question of the Day. And this one comes from Trevor, “a longtime reader (probably going on 8 years now), basically never commented though…”

I’ve got a couple of savings accounts that essentially pay zero interest. One for emergencies (home repairs, job loss) and one for a bi-annual trip back to see family in Asia (which is getting pretty swollen these days). Together I just refer to them as my “emergency fund”. All together it’s around $30k which just seems completely wasteful sitting there basically declining in value (against the backdrop of inflation). I’ve heard about a strategy to just not even have an emergency fund, invest it all and just use a HELOC as your emergency fund. This way I can deploy basically all of my savings into my B&D ETF portfolio and use a relatively low interest HELOC in the case of emergency or whenever we actually can travel again. Is this actually a wise strategy? Are there unforeseen issues with this? How about with the likelihood of rates jumping up and house prices declining?

Well, Trev, Canadians keep an astonishing amount of money sitting as cash in TFSAs, cashable GICs, HISAs and regular chequing/savings accounts which is depreciating daily. Remember that inflation is officially well over 4% now, and no near-cash investment return comes remotely close. In a world like ours, saving is for suckers.

Emergency funds are an anachronism, and a financial-emotional dumpster. When was the last time you had an emergency? Right. Never. Having said that, it’s always wise to have a contingency plan in place, which is why God looked down and she said, “Let there be LOCs.” And, lo, there were.

So set up a personal line of credit at the bank. It does not need to be a secured HELOC, which involves an appraisal and a claim against title. Sure, the rate will be higher for an unsecured line, but anytime you borrow the thing can be paid off with a transfer from your investment accounts. If used for any kind of financial asset purchase, all interest is deductible. The cost of maintaining a line is typically zero. And it’s always sitting there for you to tap into if a wildebeest actually attacks.

You never know.

 

177 comments ↓

#1 physicist on 10.25.21 at 12:37 pm

My investing question of the day, to all wise folks out there:

A few days ago it was mentioned in the comments that VAB is not a good choice for ETF to hold for bond exposure in the BD portfolio. Could someone give me an example of a better choice?

Thanks in advance

#2 AM in MN on 10.25.21 at 12:55 pm

One other way to look at the Bank of Mom is that it shows there is a growing split in the world between those with close families and those without. Nothing int he statistics you cited discussed it, but my guess is that BoM loans came primarily from those who are long term married.

The argument goes, “you can’t take it with you when you die”. many mils stand to inherit a big pile when their parents die, but then that will just make them wealthy retirees as well.

Why not spend it/use it when you’re younger and can make more use of it, especially if the purpose is to grow your own family (and deliver grandchildren)?

The understood loan term on thee loans is that Mom will not be left alone in her old age. Possibly a basement suite or some other arrangement where she isn’t warehoused in some shabby nursing home, the conditions of which were on display during Covid’s early days. How do you compare such an understanding to having a few more bucks in a retirement account?

Just to follow up on yesterday, the CBC is a corrupt and fetid swamp in far more ways than you mentioned. How about 3 years of wall to wall fraud in the Trump Russia hoax?

Watch them turn themselves into pretzels with trying to explain the fuel poverty of so many poor people while extolling the virtues of the wealthy liberals partying at their expense at the global warming summit.

There is nothing about them that a free and fair society should want, let alone be forced to pay for.

#3 Millennial 1%er on 10.25.21 at 1:02 pm

What’s the problem? I got a small loan of 80k from my mom to buy a house, which I paid her back in two years. I’m richer for it. Why shouldn’t everyone do the same?

#4 Vocal Edit on 10.25.21 at 1:02 pm

Dolce Vita, do you know what the Green Pass is called in Greece?

Freedom Pass!

#5 Sail Away on 10.25.21 at 1:04 pm

Well, look at little TSLA self-driving themselves up 9% today to an all time high. Aw, so cute…

#6 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 10.25.21 at 1:06 pm

But Garth, it is SO worth it to borrow $130,000 from the BofM to buy a glass-walled condo or a slanty semi in Toronthole!

The quality of life in Trauma Ontariowe is amazing – just look at the last weekend –

Only 8 deadly shootings and 4 murders since Saturday!

https://toronto.ctvnews.ca/toronto-police-investigating-eight-separate-weekend-shootings-1.5636518

https://globalnews.ca/news/8322435/toronto-police-shootings-violent-weekend/

Plus a slew of hit and runs/killings and general traffic chaos thanks to all the narcissistic psychopath GTAHoles on the roads there.

And to top it off (DRUM ROLL PLEASE!!)………

The Make Believes are 0-3 in the last three games!

CRUSHED by the Penguins, 7-1 on Saturday!

(Note to Toronturds: The “Penguins” refers to an actual, competent, professional hockey franchise that has won the Stanley Cup 5 times in the last 30 years – hard to believe, eh!)

So borrow everything you can from your Mom, your Aunt, your BIL to buy any property in Toronthole!

WINNING!!!!!!

*Just don’t forget to buy at least $1 million in life insurance, so your family can afford to buy a small studio AirBnB condo when you get murdered :)

#7 John Stewart on 10.25.21 at 1:07 pm

“We all have a bit of a tendency to grant amnesty to people that are doing things that we would prefer, even if that means that they’re slightly undemocratic.”

John Steward on CNN few days ago.

#8 Dogman01 on 10.25.21 at 1:13 pm

For Trevor

Years ago the Manulife One system was promoted.

Essentially, forget about accounts and dividing your money. Put all your money and all your debt into one basket, the “ONE Account”.
Owe $300K on House, and have 30K in “emergency fund” then “ONE Account” is -$270K. Need $10K for emergency then withdraw from “One Account” and you now have -$280K.
Your paychecks go direct into the “ONE Account”, immediately it starts reducing the Interest costs on that account. As you need money you just withdraw.

All cash is working at all times. If your House loan rate is 3% then your interest on your money is 3% …..awesome possum!
Whenever you or your spouse think “your richer than you think” , you glance at the “ONE Account” balance and realize nope…your balance is negative. A great physiological tool to actually pay down debt.
Need to buy a vehicle…simply make a hard ball all cash offer as you know the rate from your “ONE Account” and you know the cash is there.

I suspect this method shaved off five years on my Financial Freedom date, my spouse got on board as she had full visablitty to the “holy crap” debt number.

You can do it with a HELOC at a regular bank but it is not as elegant.
This is for Ants not Grasshoppers but if you are on Garth’s Blog you are likely an Ant.

Still around:
https://www.manulifebank.ca/personal-banking/mortgages/manulife-one.html

#9 Freedumb? on 10.25.21 at 1:16 pm

A total of 32 countries have used militaries or military ordances to enforce rules, which has not been without casualties. In Angola, police shot and killed several citizens while imposing a lockdown. Others have drawn on technology to grow government oversight. To monitor rule-breakers, 22 countries have used surveillance drones. Facial recognition programmes have been expanded, internet censorship has occurred in 28 countries, and internet shutdowns in 13. At least 120 contact-tracing apps are in use across 71 states, and 60 other digital contact-tracing measures have been used across 38 countries.

#10 John Stewart on 10.25.21 at 1:20 pm

“I think there has always been the danger that a minority of voices would have the majority of power. In a lot of ways that’s baked into the way that the system was created and enacted.

We’ve elevated money and corporate power to this one level, we’ve diminished pure democratic power to anther level and we’re wildly out of balance”

John Stewart on CNN few days ago.

#11 Tarot Card on 10.25.21 at 1:30 pm

Thanks for the blog Garth
Well as you stated there are millions of dollars sitting in low interest savings accounts, then it makes sense why there are so many loans. Canadians do not understand investing.

Anyway I experience the same thing not two weeks ago parents said we will give $50,000 to their child no repayment required, just changed the will that the son will receive $50,000 less then the other siblings after they are deceased.

What will be interesting if housing falls interest go up and there are all lot of kids under water will the bank of mom become sugar Momma?

But then again Trudeau got your back with printing presses.

Be forewarned for those not old enough to remember When Canada was called a banana republic with out of control deficits and a 50 cent dollar.

#12 Wrk.dover on 10.25.21 at 1:30 pm

#148 Dragonfly 58 on 10.25.21 at 11:32 am
Hi Garth and all. It’s not pure spite and venom. As an example , yesterday I heard a help wanted ad on the Victoria radio. Red Seal Plumber, $56.00 and change per hour.
I am not taking away from a Plumber. I have done plenty of plumbing over the years , much of it on the job plus a certain amount at home so I know at least the first 80% of the trade.
_______________________________________

Likewise. New work plumbing is Lego, period.
Repairs can be nasty though, but not worth 100k.

#13 Dr V on 10.25.21 at 1:35 pm

148 Dragonfly 58 – At or near retirement, it’s tough to
look back at some of the wages we made and compare them to what is being offered today. Imagine what it will be like in 20 years.

Maybe try these numbers and see if it makes you feel any better. Let’s say you’re single and have a nice job
with the city with a wage of $100k. The city tops you up
with another 7.5% towards pension, and you give 7.5% as well. Then you have to pay about $3k towards CPP,
maybe another $1000 of non-taxable deductions so that your taxable income is $88500.

From the Ernst and Young tax calculator. that gives you
about $70k after tax in BC, a little less in most other provinces

https://www.eytaxcalculators.com/en/2021-personal-tax-calculator.html

I expect you both get a good CPP, as well as OAS at 65.
That’s maybe $17k per year each. And your workplace
pensions, even at $25k each, for $42k each per year.
From the tax calculator, that’s $36k each after tax, MORE than the $100k city worker. Throw in the oldies tax credits, and maybe some retiree benefits, and you’re all set. My bet is you’re as well off as the $56 plumber.

#14 LTC on 10.25.21 at 1:36 pm

The Canadian Armed Forces has dismissed reports from its own staff who said that residents at two Ontario nursing homes died of dehydration, and suggested that the “unsubstantiated” allegations stemmed from an “emotionally charged” witness statement.

The military says it cannot definitively comment on what caused the residents to die, because it did not conduct forensic investigations or autopsies into the fatalities, according to a subsequent review by the Ontario government into the reports.

https://www.theglobeandmail.com/canada/article-military-dismisses-reports-that-ontario-nursing-home-residents-died-of/

#15 Dogman01 on 10.25.21 at 1:39 pm

#2 AM in MN on 10.25.21 at 12:55 pm
#7 John Stewart on 10.25.21 at 1:07 pm

Media, censorship based on perception of “righteousness” etc.

https://greenwald.substack.com/p/pierre-omidyars-financing-of-the

I have been reading his stuff on the orchestrated campaign to present “a whistle-blower” on Facebook to bring in control censorship of Facebook \ Social Media information.

Trump Derangement Syndrome, has moved so many people to an anti-free speech righteous authoritarian frenzy.

The established elite in the USA just cannot comprehend that Trump is a symptom. The Biden administration is assuring Trump will make a comeback and literally tear the USA apart.

#16 db on 10.25.21 at 1:40 pm

Are there some caveats to the cash advise?

Though on the surface 30 grand seems a bit much Trevor does suggest it’s bloated due to Covid travel restrictions. He doesn’t specify whether he travels to Asia as a family or as an individual but bi-annual trips to Asia would be 5-8 thousand per year/person(adult) depending on how long he is staying; I used to commute for work 5-7 times per year and know from experience most people vastly underestimate the total cost of travel.
If the recommended asset mix of a B&D portfolio has 2% cash and you recommend liquid saving of 6 weeks of income is his $30 thousand cash reserve just a temporary blip or actually excessive or is the 6 weeks of income savings drawn from the LOC?
The LOC advise is rock solid but with your usual caveat that as a recall loan it’s best used for temporary bumps and to pay off credit cards (before loan shark rates kick in). I will confess that during Covid I broke with my own emergency only use rule and binged on Preferred Shares last March and April using my LOC and though I didn’t live to regret it and paid it off within 6 months it’s not something I would ever do again.
On a side note, I’ve noticed businesses advertising themselves as ‘financial therapists’, and though I think it may apply in many situations, personally I think the two should be separate professionals (mental health, financial professionals) who may partner and cross-refer to one-another rather than a single person attempting to wear both hats.
I realize it’s a sensitive topic but any thoughts you have on the concept would be greatly appreciated.

#17 Dolce Vita on 10.25.21 at 1:43 pm

NO KIDDING about BoM.

When I was compiling the 2020 Asset, Debt & Net Worth numbers a few days ago I knew something screwy was up in particular with the Under 35s. Tried to +’ve an heap kudos on them in my Comments like any good Boomer does, but still, left NUMERICALLY scratching me head.

You look at the numbers for them:

https://i.imgur.com/F6YEh7b.png

And look at the CRA tax bracket data for the Under 35s, # of people = about 7.7M in total:

$45,916 or less = 77% of the total
$45,916 – $91,831 = 19%

And I asked myself where the hell are they getting all the money from to buy $655 billion of RE incl. 2 or more properties and END UP WITH only $300 billion of RE debt? 41% have a home and an additional 5% have 2 or more properties.

AND 10% of them have no mortgage on their principal residence (= 41% – 31%).

——————————————-
What FINANCIAL WIZARDRY have these kids been coming up with?
——————————————-

I mean heck, 77% of them shouldn’t be able to qualify for a Garden Shed in Canada. And remember in the “Under 35s”you have:

13% are Under 20 years old (big tips at Starbucks, McDonald’s?)
25% are 20-24 years old (massive salaries upon graduation?)
Early Bitcoin investors?

No, it’s not from superior salary income.
No, it’s not from RRSPs, TFSAs or Mr. Market.
No, not from a Line of Credit.
Certainly not from the money they have saved in their bank accounts.

So when I looked at the Boomer and Paleo 2020 Asset, Debt & Net Worth numbers a big:

Ta, da.

Again here are their numbers:

https://i.imgur.com/nhN5zsm.png

You can see which assets were pillaged & sacked and the amount of debt they put themselves into in terms of well, you name it.

This is for you Garth and Benny Tal: take a look at the Total Principal Residence & Other RE equity.

$THREE [3] Trillion

BoM ain’t tapped out yet.

4.4% inflation rate. Way more inflation to come.

YOU DID IT TO YOURSELVES CANADA.

—————-

As for Paul Kershaw & Generation Squeeze:

Nutters. ALL of them.

#18 A Borrower Bee on 10.25.21 at 1:48 pm

#2 AM in MN on 10.25.21 at 12:55 pm

Bang on.

It genuinely amazes me what percentage of the adult population apparently has a supportive relationship with its parents.

When I came into an inheritance from an aunt as a kid, my dad pawned me off to boarding school with that money. When I came of age, he pressured me to invest in his business, and I never saw a cent back. When he died, everything was left to his second wife. Zero involvement in our kids’ lives while still alive, and no help financially or otherwise.

My wife’s dad went on early disability after eventually grinding down the folks pressuring him to be retrained and spent the next 20 years watching TV in a mouse-infested rent-assist basement apartment living on the dole. When his own mother died, his share promptly got blown on a nice new SUV he parked outside that apartment until his death, hardly driving it. Again, zero involvement in our kids’ lives while still alive, and no help.

Don’t get me wrong: Knowing for 20 years that we had to be fully self-sufficient gave us the impetus to do better than average. A single base-model car for the family, no fancy vacations or eating out, but by now a paid-off comfortable house and and a decent portfolio.

But the stats above suggest that our experience is not actually the norm and not all “boomers” are like that. While it is annoying to have to compete with people who have well-resourced, supportive parents, I guess you can’t fault people for being decent.

#19 Mike on 10.25.21 at 1:52 pm

” In a world like ours, saving is for suckers.”
That’s uncalled for Garth …
Sure GIC, HISA indeed are a loosing proposition especially considering the high Inflation rates.
I’m OK with you saying that, go ahead and harp on your views that everyone Must invest not too have their nestegg depreciate in value.
I confess it hurts to have some of my funds not producing at this time but I know the time will come when I’ll be very happy to have a good chunk of change in cash to be deployed.
In any case, would you please stop calling savers Suckers?
The view of must be invested at all times because there is no better alternative might get proven to be incorrect soon.
Your blog, your views, I have no problem with any of that but I’m sure you can drive attention to what you want to say without name-calling. Thanks

#20 Shawn Allen on 10.25.21 at 1:53 pm

Venom towards Real Estate Agents and others

Greed, as I wrote, is understandable. The venom people spew towards others based on their occupation is unfathomable. – Garth

**************************************
I totally agree about the venom and your wise words when you said:

“You people are twisted. Walk a mile in a commissioned-income, no-salary, no-pension, no-paid-vacay, no-benefits saleperson’s shoes for six months. Then you get to comment. – Garth”

No one is forced to use a real estate agent. And people are free to choose a good one based on reputation and referrals and to negotiate the commission.

I have self-employed friends. When they go on vacation they pay the cost of the vacation AND lose income. Meanwhile government workers (Yeah I was one) max out at six to seven weeks vacation and can take sick days pretty much at will. That’s not to say many government don’t work hard. I put in hundreds of hours of unpaid overtime most years and pulled the occasional all-nighter too. But no comparison to the situation of the self-employed or commission-worker!

Being venomous towards certain individuals can be justified. There is no justification to be venomous towards whole occupations. Not even mutual fund sales guys. Also not to FOBO people as a group.

Maybe I’m just in a good place lately… I’m not feeling venomous towards anyone be it CBC or CNN ( I’m not forced to watch). Not to Trudeau either. (He got elected three times now and has spent too much but has good intentions I am sure). And anyhow, my comfort in life has never been much determined by who is in office.

There is so much venom and jealously on line. So many people seem absolutely bitter and rather horrible especially when anonymous but also even on Facebook.

I will cop to a certain amount of greed, but I feel I have earned what I have. But I could never have earned much without the economy and society we live in. The rule of law and such. And I don’t begrudge my taxes paid.

#21 Jack Morgan on 10.25.21 at 1:57 pm

The reason houses are so damn expensive is simple – supply and demand. End restrictive land use policies and / or stop immigration (not going to happen), and heavily tax investment properties. Problem solved.

#22 Charter of Rights on 10.25.21 at 1:57 pm

Canadian Charter of Rights and Freedoms here saying Good Monday morning too all!

Just wondering how you guys feel about the rights and freedoms I provide.

Should your rights be clear and binary – as in you have rights or you don’t?

Or should they be variable – as in you have some a bit of the time or none once in a while?

I’m hitting middle age, and am having a bit of an identity crisis. Feedback appreciated, as I want to know if you love me as I am, or if I should get a face lift and perhaps plugs.

#23 Shawn Allen on 10.25.21 at 2:05 pm

Why So much cash in bank deposits?

Canadians keep an astonishing amount of money sitting as cash in TFSAs, cashable GICs, HISAs and regular chequing/savings accounts which is depreciating daily.

******************************
Any individual is free to not hold cash and very low interest deposits.

But Canadians as a whole are pretty much forced to hold huge amounts of cash in bank deposits. Here’s why:

Borrowing creates deposits. We have been over this.

I used to say one man’s debt is another man’s savings. That’s true but given how banking works it is debt by one person that creates the savings of another. (Joe gets a mortgage and buys Frank’s paid for house. This creates a huge deposit in Frank’s account and that deposit will can be transferred to others but remains in existence in some bank until it is used by someone or some business to pay off a loan. No one takes it out in paper form and in any case that would still be cash).

So perhaps it is better to say one man’s savings is another man’s debt.

AND when one person takes their cash and buys an ETF, that cash ends up in another bank account.

Cash and deposits get created mainly when people borrow and gets eliminated when debt is repaid.

Debt is always growing and hence bank deposits are always growing and there is no ability to reduce the total Canadian bank deposits “sitting” there until and unless debt gets repaid.

I think BlackSheep will agree?

#24 Dolce Vita on 10.25.21 at 2:05 pm

#3 Millennial 1%er

Why shouldn’t everyone do the same?
[Another Economist in Canada commits Seppuku]

When SUPPLY = shortage.

And DEMAND = awash in cash thanks to BoM + Govs Canada.

You get this:

4.4% inflation + a $663,503 avg. home price.

———————-

Nice job. Good to read where your priorities are.

PS:

So, what’s a Millennial 1%er (as in top 1%) doing asking Mamma for an $80K loan?

If a 1%er you should get that fast enough from a Line of Credit.

Oh, I get it:

BoM loan % = 0.

#25 Dogman01 on 10.25.21 at 2:09 pm

#1 physicist on 10.25.21 at 12:37 pm
My investing question of the day, to all wise folks out there:
A few days ago it was mentioned in the comments that VAB is not a good choice for ETF to hold for bond exposure in the BD portfolio. Could someone give me an example of a better choice?
Thanks in advance

———————————-

If your looking for equities plunge protection have a glance at a comparison between VAB and ZTL . Focus on early 2020 and the equities plunge.

ZTL offered “Plunge Protection” , as equities plunged ZTL went up. As Equities recovered ZTL went down.

VAB looks much more steady eddy.

#26 uncle dave on 10.25.21 at 2:16 pm

Who wouldn’t want to tap up the BoM for this gem.

https://www.realtor.ca/real-estate/23755366/330-coxwell-ave-toronto-greenwood-coxwell

#27 IHCTD9 on 10.25.21 at 2:18 pm

The CBC is only going to get more expensive and less useful.

Canadian RE is Russian Roulette for those who oppose gun ownership.

My “new” 3/4 ton got 9.6 L/100KM over a 295km drive this weekend doing 110-120 km/hr. GM advertised this thing at 31 hwy/23 combined (USG) back in the early 80’s. 31 MPG is 7.59L/100KM.

I’m going to take the huge box cap off, and swap the clutch fan for an electric, and try for 8’s. If it pulls it off at 110-120, there will be an NV3500 5 speed OD manual swap and a 3.08 geared 10 bolt lined up after that in a bid for the 7’s.

#28 Dolce Vita on 10.25.21 at 2:22 pm

#4 Vocal Edit

https://travel.gov.gr/#/

I love Elláda and its people but not going well for them and many others in Europe right now:

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

———————————————-

*****HEADS UP CANADA on VAX EFFICACY ESP J&J*****

Protection against infection:

Janssen or J&J
March, 92%
August, 3% !!!!!!!

Moderna
March, 91%
August, 64%

Pfizer
March, 95%
August, 50%

620,000 in the US study:

https://www.medrxiv.org/content/10.1101/2021.10.13.21264966v1

———————————————-

I don’t think any J&J used in Canada but if ANY OF YOU GOT the J&J vax, you know what to do.

#29 Get on the Trump TRUTH Train! on 10.25.21 at 2:29 pm

The Trump train to the white house is back on track!!

“Shares of Digital World Acquisition Corp DWAC-Q -9.79%decrease have risen 842% since the blank-check acquisition company announced on Wednesday it would merge with Trump Media & Technology Group, which aims to launch a social media network called TRUTH Social.”

#30 Dogman01 on 10.25.21 at 2:29 pm

#22 Charter of Rights on 10.25.21 at 1:57 pm

Good article:

https://nationalpost.com/opinion/arjun-singh-left-wing-values-have-invaded-canadas-legal-system-and-diminished-our-charter-rights?

#31 crowdedelevatorfartz on 10.25.21 at 2:30 pm

Soooo.
Mom gets a Line of Credit on her house to loan to junior.

The market eventually drops and the price of the house goes down.
Mom’s line of credit is called so she sells and she moves in with junior….
Win!

#32 Quintilian on 10.25.21 at 2:30 pm

Too funny, there is almost 2 trillion dollars in mortgage debt.

So is the bank of mom helpful?

Or just helping to put the shackles on?

Talk about a homemade derivative fiasco.

Tick Tock, Tick Tock

#33 Dragonfly 58 on 10.25.21 at 2:30 pm

Well Dr V , I only wish it were so. When I retired I was making the same $46.00 / hr that I had been making for the previous 10 years. Lots of OT was the only thing that let me keep up, but 100 % Non- pensionable. My pension income is about 1/2 of that $46.00 / hr , but I am in a lower tax bracket than when I was working.
I should have switched employers when my wages stalled out , but in your mid – late 50’s that is a very risky situation.
Wife will do better, we won’t be homeless. But that’s about it after decades in the workforce and 8 years post secondary education. 1 year Mechanic , 3 years Tech program at B.C.I.T { these days it is condensed into 2 } plus 4 years U.B.C. Only 6 years for wife RN + Masters.

#34 Immigrant man on 10.25.21 at 2:31 pm

#21 Jack Morgan on 10.25.21 at 1:57 pm
The reason houses are so damn expensive is simple – supply and demand. End restrictive land use policies and / or stop immigration (not going to happen), and heavily tax investment properties. Problem solved.
————–
Yes, that problem may be solved. What about the problem that is being solved with immigration? That problem being not enough young people made domestically.
“Heavily tax”, yeah let’s give our irresponsible gov even more dough to blow. Good plan.

#35 Linda on 10.25.21 at 2:34 pm

So many parents have adult offspring who are effectively still dependent on their parents. Even if $ for RE are not in the offing, parents are providing groceries, paying for utility or cell phones etc. Even if ‘the kid(s)’ are no longer living at home. I can see lending a helping hand when young adults are just starting out, but not a few of these ‘kids’ are in their late 20’s or older. Well, I guess everything old is new again, including multigenerational living in the same house. As for loaning $ for RE, the justification I hear is ‘I’m providing them their inheritance’. OK if they can afford it, but if they are gutting their own retirement to provide ‘the inheritance’ not the smart way to go in my opinion. Because it is quite possible the kid(s) won’t be willing or able to reciprocate when it comes time to take care of Mom/Dad. Hard to take care of someone else when you haven’t yet learned to take care of yourself.

#36 crowdedelevatorfartz on 10.25.21 at 2:34 pm

@#27 IHCTD9
“I’m going to take the huge box cap off, and swap the clutch fan for an electric, and try for 8’s. If it pulls it off at 110-120, there will be an NV3500 5 speed OD manual swap and a 3.08 geared 10 bolt lined up after that in a bid for the 7’s.”

+++

Nah.
Just get it more streamlined….

https://www.youtube.com/watch?v=eckzQvj4Lq4

#37 wallflower on 10.25.21 at 2:49 pm

I know couple with one kid whose parents ploughed gifted 700,000 into their 1.9 Toronto buy; the couple then ploughed 450,000 into reno, selling handful years later (this year) for 2,395,000, to move up.

Clear deficiency in arithmetic skills but not important when family assets are on tap.

#38 IHCTD9 on 10.25.21 at 3:02 pm

#36 crowdedelevatorfartz on 10.25.21 at 2:34 pm
@#27 IHCTD9
“I’m going to take the huge box cap off, and swap the clutch fan for an electric, and try for 8’s. If it pulls it off at 110-120, there will be an NV3500 5 speed OD manual swap and a 3.08 geared 10 bolt lined up after that in a bid for the 7’s.”

+++

Nah.
Just get it more streamlined….

https://www.youtube.com/watch?v=eckzQvj4Lq4
_____

A pile of crude replies immediately come to mind…

#39 Lee on 10.25.21 at 3:06 pm

Will MOM come begging for the money back when she finds out CPP pays squat and she gets laid off at 61 rather than the anticipated 65? How about when little Sally dumps her tot off with MOM and dad and asks them to give up their retirement freedom to watch the rug rat for free? And by the way, doesn’t anyone hit up the bank of dad?

#40 Immigrant man on 10.25.21 at 3:06 pm

Fascinating numbers! I knew anecdotally that parents often help out with the downpayment, but I had no idea its like THIS big.

I wonder how this works down the road. In traditional cultures one is obligated to look after parents when they are old. Obviously this is not 100% all the time, but basically your parents may end up living next to you (if you can afford another house) or with you. What I’ve seen in Canada is that most of the time old folks that cannot take care of themselves live in a residence. Now if you give your kids 200k, is it the same when you are old? Ship gramma off to the old folks home or can mom expect a lavish suite in the basement for her financial contribution?

#41 Doug in London on 10.25.21 at 3:10 pm

It will be interesting to see what will happen if real estate goes bust, like it did in the United States in 2008. Not likely to happen, but those black swan events do occur every now and then.

#42 Big Bucks on 10.25.21 at 3:19 pm

As more and more parents prop up their kids ,many old fogies will just rely more and more on the OAS and it’s welfare buddy the Guaranteed Income Supplement(GIS)which can add up to $1000 a month if your income is low enough.As if there wasn’t enough strain on OAS before.More and more strain on government programs pretty much ensures a home tax will arrive eventually.

#43 IHCTD9 on 10.25.21 at 3:22 pm

#40 Immigrant man on 10.25.21 at 3:06 pm
Fascinating numbers! I knew anecdotally that parents often help out with the downpayment, but I had no idea its like THIS big.

I wonder how this works down the road. In traditional cultures one is obligated to look after parents when they are old. Obviously this is not 100% all the time, but basically your parents may end up living next to you (if you can afford another house) or with you. What I’ve seen in Canada is that most of the time old folks that cannot take care of themselves live in a residence. Now if you give your kids 200k, is it the same when you are old? Ship gramma off to the old folks home or can mom expect a lavish suite in the basement for her financial contribution?
____

Well, the highest priced RE markets in the nation are also the most immigrant dense, and there’s no shortage of folks in urban Canada with cultures that expect the kiddies to look after Mom and Dad after retirement.

Lots of kids under their parents thumbs I suspect…

#44 Sail Away on 10.25.21 at 3:31 pm

This ‘historic weather bomb’ for Vancouver Island seems like another historic overexaggeration. Yawn. So sensationalist those weather forecasters. I’ve sailed offshore in worse weather than this many times:

https://www.weather.gc.ca/marine/weatherConditions-24hrObsHistory_e.html?mapID=02&siteID=06800&stationID=46206

If only we engineers could be so loosey-goosey in our predictions: ‘This bridge will last for a million years!’

Then it fails the next year and nobody cares.

The sky is falling sells. The sky is just fine doesn’t.

#45 Dr V on 10.25.21 at 3:33 pm

23 Shawn

“AND when one person takes their cash and buys an ETF, that cash ends up in another bank account.

Cash and deposits get created mainly when people borrow and gets eliminated when debt is repaid.”

Yes, the loan asset disappears from the bank balance sheet, as does the liability from the borrower’s balance sheet. but the ‘money’ may still be in either the vendor’s account, or has been passed through multiple accounts
for goods, services or investments. So I think the ‘money’ is still in the system.

The problem hits when borrowers cannot pay back the loan. Then the ‘money’ is really gone.

#46 Joseph R. on 10.25.21 at 3:39 pm

#22 Charter of Rights on 10.25.21 at 1:57 pm

Rights are clear but there are not absolutes in law.

Who accuses the charter of having an identity crisis? What are their evidence?

#47 Philco on 10.25.21 at 3:43 pm

I know how Trev feels. I’ve got 4 or 500K$ Cash at a open low 1.2 int. Only reason I get a decent rate as I had some leverage on the bank. I can justify a high cash level buy my appreciating RE holdings.
Cash is trash these days.
Just waiting for the bean counters to sort out my COs so I can get back in in some higher returns.

#48 Wrk.dover on 10.25.21 at 3:46 pm

#27 IHCTD9 on 10.25.21 at 2:18 pm
___________________________________

110-120, there’s your problem.

Down East, you can do the speed limit all day with out people catching up to you, or yourself catching up to Pokeymon and needing to do much passing.

Imagine living in a society of all peeps on the same page!

You wouldn’t have liked distance driving 55 in USA / mid 70’s era.

A new paper air filter will give better mileage than a washed to reuse K&N imo.

I gotta get out of the house, my off topic commenting is getting old.

#49 macduff on 10.25.21 at 3:46 pm

@35 Linda
I think you are absolutely right, and with this likely being such an emotional issue between parent and child, I doubt the parent has often considered what will happen if they outlive their savings. Also, the average $ in RRSPs is quite pitiful in this country, so if their plans are to survive via reverse mortgages, this could turn out quite ugly.

#50 Charter of Rights on 10.25.21 at 3:56 pm

46 Joseph R.

Aren’t we in some “emergency” that allows me to be taken out of the game of protecting rights and freedoms and benched?

How can the rights I provide not be absolute? So I’m more of a guideline? A list of recommendations?

I don’t know who I am anymore! I’m everything and nothing at the same time?

I think I need to see a personal development coach after I get my facelift and plugs.

#51 BlogDog123 on 10.25.21 at 3:59 pm

I don’t remember my folks giving any money to my spouse and I for a down payment. But that was 2004 and it was around 140k on a 350 ish SFDH…

Times are different now and the “Bank of Mom” can’t see her daughter living in an apartment with the smell of fish in the hallway and no backyard and no 2-car garage and no white picket fence granite countertops, infinity pool, and heaven forbid she raise children in that stinky place I can see the garbage bin from the balcony,…

guilt, guilt, guilt, no need to talk about boring finance topics like afford, debt, future payments…

#52 Ponzius Pilatus on 10.25.21 at 4:06 pm

#5 Sail Away on 10.25.21 at 1:04 pm
Well, look at little TSLA self-driving themselves up 9% today to an all time high. Aw, so cute…
———
Yep.
The HERTZ deal did it.
Should be interesting how this plays out in the future.
I’m a bystander with no dog in the fight.

#53 Vocal Edit on 10.25.21 at 4:07 pm

#28 Dolce Vita on 10.25.21 at 2:22 pm

https://travel.gov.gr/#/

Dolce, so glad I spent my year in Greece already, when it was free, wonderful and not under attack by virus or immigration waves.

Travel is no longer fun to be honest. Full of fear and cavity searches, it is a freedom no longer free. TurnerNation has this point nailed to bullseye.

I hope you enjoyed a good laugh at the Greek Freedom Pass – because I’m still laughing at it.

…although, I’m quite certain this laughter is not caused by anything that is remotely funny.

#54 Not a Plumber on 10.25.21 at 4:17 pm

I get a kick out of people on this blog complaining plumbers are overpayed, by extension this could be taken that all trades people are overpayed because the wages for most skilled trades are relatively close.
I am a retired tradesman, I am sure the complainers who think this work is easy did or do “white collar” jobs and make the same or more but get more respect.
I don’t get it, don’t hire a plumber if you don’t want to pay, somebody else will, supply and demand.

#55 ritenote on 10.25.21 at 4:17 pm

Have any of the so-called, generous Boomer parents considered they might be robbing their own offspring? Of the incredible feeling of having actually earned their first car? Their first home? How ’bout knowing one has earned one’s way in the world, based on our own skills, talents, work ethic? It’s priceless.

To all the Boomers who are helping inflate the Canadian real estate market…ever read Shakespeare’s King Lear? Just a thought?…how many millennial Cordelia’s kicking around out there? Something tells me they might be in short supply…ask the wise fool…

#56 Philco on 10.25.21 at 4:22 pm

#27 IHCTD9 on 10.25.21 at 2:18 pm
———————————–
Wadda ya got for power? Did I miss that?
My Tundra 14L/100k and Duramax Dully crew cab is 17L/100k but has 4800lb 2 slide camper.
Can ya get me down to 10 on either? Maybe Sail Away can tow me with his TSLA…?

#57 IHCTD9 on 10.25.21 at 4:25 pm

#48 Wrk.dover on 10.25.21 at 3:46 pm
#27 IHCTD9 on 10.25.21 at 2:18 pm
___________________________________

110-120, there’s your problem.
____

Well that’s bottom end speed on da 401 where I was driving at the time! 9.6L/100KM is 24.5MPG USG which from a bone stock 3/4 ton pickup I am pretty happy with all things considered. I think it has an easy 26-27 MPG in it without the cap/clutch fan and at a steady 110.

#58 Shawn Allen on 10.25.21 at 4:32 pm

No and Yes

#45 Dr V on 10.25.21 at 3:33 pm responded
23 Shawn

“AND when one person takes their cash and buys an ETF, that cash ends up in another bank account.

Cash and deposits get created mainly when people borrow and gets eliminated when debt is repaid.”

Yes, the loan asset disappears from the bank balance sheet, as does the liability from the borrower’s balance sheet. but the ‘money’ may still be in either the vendor’s account, or has been passed through multiple accounts
for goods, services or investments. So I think the ‘money’ is still in the system.

The problem hits when borrowers cannot pay back the loan. Then the ‘money’ is really gone.

*******************************
The first part of your response is wrong. Just remember that “money” these days is largely consisting of bank deposits. Yes deposits get moved around. Deposits and therefore money are created when money is borrowed and disappears when a loan is repaid. Remember too that wealth is measured in units of money but most wealth is not money as such.

Yes money and deposits move around . That is what I am saying and money / deposits when “spent” does not disappear. It almost always just gets transferred to a different bank with a different owner of that deposit.

Nothing in what I wrote of said there was any problems at all. I simply described that the so called “excess” money “sitting” around got created by debt and does not decrease when people spend or invest money (Think Whack-a-mole).

I did not address when a problem arises. But you are right if a loan is not paid back that is a problem for the lender. Generally this is a problem for bank shareholders but it happens relatively rarely enough that it is just a manageable cost of doing business. (But there could come a time when it is a big problem.)

#59 Ponzius Pilatus on 10.25.21 at 4:33 pm

#46 Joseph R. on 10.25.21 at 3:39 pm
#22 Charter of Rights on 10.25.21 at 1:57 pm

Rights are clear but there are not absolutes in law.

Who accuses the charter of having an identity crisis? What are their evidence?
—————-
There are no absolute rights unless you’re religious.
I.e. The rigt to Freedom is relative.
Freedom to a slave may be walking around without chains.
Freedom to an Albertan may be being able to go shopping without a mask.

#60 Luc on 10.25.21 at 4:37 pm

Canine long life… https://www.amazon.com/Forever-Dog-Surprising-Companion-Healthier/dp/0063002604/ref=zg_bs_books_39?_encoding=UTF8&psc=1&refRID=8GYSGXVPMM5NSMFJBWRH

#61 TalkingPie on 10.25.21 at 4:47 pm

Amidst all the insanity surrounding the current real estate market, parents helping their kids buy their first property seems perfectly rational to me.

On one hand you have a generation who bought property at a time when it was fairly affordable, that has appreciated so much that some families have amassed a fortune just by living in their house.

Then on the other hand you have the children of this generation, who came into adulthood at a time when affording real estate has been nearly out of reach for the average person without outside help.

To me it seems perfectly reasonable that in this climate parents who can afford it have decided to effectively transfer some of their windfall to their children. It’s a rational move in an irrational market.

Is it a good thing for the current generation to have success somewhat separated from hard work (You have the children of families who own real estate lucking into wealth while those who don’t are effectively locked out of owning a home in some larger cities)? Of course not, but it’s normal that parents who are able to will try to give their kids a leg up. This goes doubly considering the fact that the parents have seen how well owning property has worked out for themselves; they want to get their children on that track, not recognizing that past performance isn’t a guarantee of future success.

I’m sure there are parents who are getting in over their heads financially trying to help out their kids. I think we can all agree that not all Canadians are exactly financial geniuses.

#62 Dr V on 10.25.21 at 4:47 pm

33 Dragonfly – sorry, you may have misunderstood – my numbers for retirement income included BOTH you and the Mrs. If your RI is $23/hr, and your wife’s is more, you’ll easily match the $56/hr plumber after tax.

My mortgage is long gone, and my savings are very tax
efficient, so with the public pensions between us, we should be fine.

#63 Ponzius Pilatus on 10.25.21 at 5:00 pm

The Bank of Mom is also fueled by immigration from Asia.
The Tiger Moms will make sure that baby will never have to rent, which is one of the deadly sins in modern Asia.

#64 Linda on 10.25.21 at 5:06 pm

#49 ‘macduff’ – I keep thinking about the difference between giving a fish or teaching how to fish. I remember how as a child there would be widows who had 1) never paid a bill or had any idea of finances because their husband took care of all that; 2) never learned to drive, ditto. Basically helpless & having to acquire skills or figure out how to pay the bills. Yes, the idea was their children would take care of them – always supposing there were children in the picture. Talk about a bad situation to be in. Working for a living may suck at times, but being able to do for oneself is the gift that keeps on giving.

#65 WTF on 10.25.21 at 5:06 pm

Given the average boomer doesn’t have enough for their own retirement this BOM lending/gifting for the kids could be somewhat problematic.

RE takes a hit, Jr loses their equity, Mummy’s down payment loan/gift money is poof, gone. Meanwhile Mommy’s house and equity have also been hit. And on it goes.

This just gets more horrifying on a daily basis. Lucky we have such capable leadership to steer us through what is likely to be a toxic cocktail, cascading tsunami of debt, despair, and all that entails. Oh wait. we don’t, per former PM Jean Chretien………..

#66 The West on 10.25.21 at 5:09 pm

#32 Quintilian on 10.25.21 at 2:30 pm

Too funny, there is almost 2 trillion dollars in mortgage debt.

So is the bank of mom helpful?

Or just helping to put the shackles on?

Talk about a homemade derivative fiasco.

Tick Tock, Tick Tock

————————————–

It’s fifty years in the making:

https://wtfhappenedin1971.com/

#67 DOnM on 10.25.21 at 5:09 pm

Is that pic real? Can you buy a seat for a dog? If so, would it not have to wear a mask?

#68 Dragonfly 58 on 10.25.21 at 5:16 pm

And I belive you misunderstand Dr V . My point was not that the Plumbing wage is too high.
It is probably more along the lines of ” why spend years in Post Sec. education and climb the ladder in demanding careers ” if a simple apprenticeship gets you to the same point ? I am not running down Plumbers, but compared to my spouces and my skills , education and job duty’s there is a tremendous difference. I was a tradesman, then I retrained in a Tech position that is very similar to a Millwright, plus Supervisor , plus a bunch of other Transport Canada qualifications , Firefighting , where I had the job of fire attack team leader, plus a whole bunch of other transportation emergancy skills, duty’s, qualifications to maintain. Regular re – qualifing to Transport Canada and International Marine transport industry standards
And all for $10.00 an hour less than a Plumber ? The world has turned upside down.

#69 NOSTRADAMUS on 10.25.21 at 5:17 pm

PROFIT VILLE RAIL LINE !
Wow, good old Mom has joined the ranks of speculators, riding first class on the housing train to Profit Ville. By providing cash to the wee one, she has bought and paid for their ticket to ride. Before too long, a little financial hiccup and they will be joining the hobo’s in the cattle car. With the fast approaching withdrawal of liquidity, meaning easy cash, you’re coming to the end of the line. Predictably, for the overindebted, riding on the Profit Ville rail line, there is no getting off, and dead man’s curve is just ahead.. “Beware The Ides Of November At Your Peril.” Amen Brother.

#70 under the radar on 10.25.21 at 5:17 pm

I do a lot of real estate transactions. Few if any first time buyers who I act for are not receiving financial help from parents. Prices in 416 are too high relative to incomes to be free of parental assistance.
We have done the same and why not? . Life is short and throws curve balls and more importantly we can happily afford to.

#71 cramar on 10.25.21 at 5:19 pm

#5 Sail Away on 10.25.21 at 1:04 pm
Well, look at little TSLA self-driving themselves up 9% today to an all time high. Aw, so cute…

—–

And Tesla passes the $1T valuation mark today, making Musk now worth over $250B! BTW, what is his primary residence? A $50,000 375 sq.ft modular house that he RENTS!

https://www.youtube.com/watch?v=Q6f92kjvuzw

Take that house-horney youngsters! The richest man in the world…RENTS!

#72 Three Mile Island on 10.25.21 at 5:23 pm

Was listening to old episode of Ideas on CBC about Counting the Cost of Nuclear Power, with Lister Sinclair. A gripping 2 episodes radio-drama about how the accident went down. Here, you can enjoy this incredible trip back here in the archive:
https://archive.org/details/CBCIdeas-CountingTheCosts-ThreeMileIsland/Part+1+-+October+13%2C+1986+-+Three+Mile+Island%2C+I-.mp3

Many parallels actually of TMI to our pandemic event with lack of data, lack of info, poor decision making, wrong decisions being made, information being withheld, denied, overlooked, etc.

But two things were truly fascinating to me and really stood out.

First, the fact that the best experts, physicists, actual designers of the plant and top nuclear minds from all the other nuclear reactor makers couldn’t figure this event out. They couldn’t answer key questions. Most fascinating of all, they appeared to not be asking the key questions that were obvious – like “what condition was the core in” and overlooking obvious evidence, like the fact that hydrogen explosion occurred – they felt it, heard it and saw it register on meters, but they refused to believe it and simply threw away the key data into the “faulty instrumentation read out error” bin and carried on the wrong path.

Second, was the psychological impact on the people who were evacuated highlighted in episode 2. It immediately made me wonder about the scale of the psychological impacts on people of this little thing that’s going on right now. I guess that cost will become obvious only in the future, just like it became obvious long after TMI.

#73 Chameleon on 10.25.21 at 5:26 pm

Felix, quickly pass me a mask, so we can…mask that dog!

#74 kommykim on 10.25.21 at 5:27 pm

#25 Dogman01 on 10.25.21 at 2:09 pm
#1 physicist on 10.25.21 at 12:37 pm
My investing question of the day, to all wise folks out there:
A few days ago it was mentioned in the comments that VAB is not a good choice for ETF to hold for bond exposure in the BD portfolio. Could someone give me an example of a better choice?
Thanks in advance

———————————-

If your looking for equities plunge protection have a glance at a comparison between VAB and ZTL . Focus on early 2020 and the equities plunge.

ZTL offered “Plunge Protection” , as equities plunged ZTL went up. As Equities recovered ZTL went down.

VAB looks much more steady eddy.

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

Over the last year, ZTL lost 14.8% vs VAB which lost 3.6%… Both suck in a rising rate environment, but VAB sucks far less.

If you’re going to hold bonds, at least keep the duration short with something like VSB, etc.
Garth likes some rate reset preferreds sprinkled in there so an ETF like ZPR is good for that portion of your fixed income in addition to the bonds.

#75 Reximus on 10.25.21 at 5:29 pm

I doubt these figures are as ‘shocking’ as folks are trying to make them seem…30% of FTB’s getting d/p help is not that much higher than 25 years ago, and the amounts are way bigger because the available equity of the older generation to lend/gift is way higher as are the d/p’s needed today.

the only real difference is the ability and willingness of seniors to share their wealth with their kids before they pass on, which is kinda cool if you ask me

#76 Sail Away on 10.25.21 at 5:34 pm

#56 Philco on 10.25.21 at 4:22 pm

Wadda ya got for power? Did I miss that?
My Tundra 14L/100k and Duramax Dully crew cab is 17L/100k but has 4800lb 2 slide camper.
Can ya get me down to 10 on either? Maybe Sail Away can tow me with his TSLA…?

——-

Can a Tesla Tow an Airstream?

https://fourwheeltrends.com/can-a-tesla-tow-an-airstream/

Spoiler alert… yes, yes it can.

#77 Felix on 10.25.21 at 5:38 pm

Terrorist hijacking of aircraft by useless mutts is simply dogawful.

#78 Twin Demic on 10.25.21 at 5:39 pm

The TWINDEMIC is coming!

THE TWINDEMIC! IT IS COMING!

https://globalnews.ca/news/8322161/twindemic-emerges-with-experts-predicting-more-cases-of-the-flu-this-season/

#79 yvr_lurker on 10.25.21 at 5:39 pm

Are wealthier parents helping to inflate real estate to the point where less fortunate families are locked out? Without a doubt.
——————-

Exactly what I surmised in my little post 6 hours ago, that was based on my own anecdotal evidence of friends in my neighborhood, people we know, and Dolce’s number crunching. The dawn of a new feudal class, in which the family you are born into plays a critical role, and where your own work ethic, energy and ambition is more secondary for getting onto the property ladder.

Good job Bernie Tal. However, it has the same belated ring to it as when the surgeon general of the US said (long after millions had died of smoking related health issues) that, indeed, “smoking is hazardous to your health”.

I came from a single-parent family that I was financially supporting well into my early 30s. If I was starting out in this current climate in Canada, doing it 100% on my own but with ambition and skill, I would seriously consider emigrating from Canada to somewhere where the odds are less stacked against you.

#80 yvr_lurker on 10.25.21 at 6:04 pm

Changing the topic. It seems as though so many people have become increasingly unglued since COVID.

Somebody needs to articulate to me how these extremist greens (the “extinction group”) generate any public good will or support from trying to block all the entrances to the YVR airport on a Monday afternoon (disrupting how many hundreds of passangers trying to get onto their flight and adhering to all the COVID protocalls).

https://dailyhive.com/vancouver/yvr-protest-extinction-rebellion-oct-25

“The Extinction Rebellion activist group is planning a demonstration “to disrupt airport access” at 4:30 p.m. PT.

The group is known for using mass disruption to increase awareness around climate change and force politicians and other officials to take action.”

I would not at all be surprised if two elected YVR city councillors Adriane Carr and Christine Boyle turn up at the protest.

Last year was such a pain trying to drive from my place in Kits to Cypress to do cross-country skiing. Often showed up very late for pickup of teenager and his friends at Cypress owing to some nutbar group having a major rally blocking major intersections downtown (either covid anti-vaxers anti-vaccine people, extremist greens, or first nations protest groups). Somehow as a society politicians at all levels have become way too tolerant of these extremists, and some pushback from law enforcement is needed so that they do not continue to trample the rights of the average joe-blows just trying to do simple things.

#81 mark on 10.25.21 at 6:11 pm

Every financial planner has a opinion on a emergency fund, and how much, Suze Orman says min, 2-3 years worth to ride out a market downturn so you dont have to cash anything in, seems prudent, I am sure lots disagree.

She has recommended 8-12 months, not 2-3 years. And even that is a ridiculous amount to keep in cash. – Garth

#82 SoggyShorts on 10.25.21 at 6:29 pm

@Garth re: HELOCs for emergency funds:
Can someone have multiple HELOCs for one house (all totaling far less than 60% of assessed)?

I’m just wondering if my parents can have their emergency fund of however much and if I can have a second little one on their house too. Separate accounts just to keep it clean in the event that I actually used it.

#83 Dr V on 10.25.21 at 6:39 pm

58 Shawn

“Deposits and therefore money are created when money is borrowed…” yes, agreed

“….and disappears when a loan is repaid.” We say that debt to one person is money to someone else, so it makes sense that the debt repayment eliminates the money.

But this is the part where I can’t connect the dots.

Let’s re-iterate. Simple example – Bank gives loan for $500k for purchaser to buy house. Seller gets $500k credited to account (ie money created) and quickly disburses it over one year, landing in all sorts of accounts (ie still money) Buyer lands a great gig and pays back the loan in that one year.

All the deposits are still there.

what mechanism/action takes place that removes that $500k from the system?

#84 Garth's Son Drake on 10.25.21 at 6:45 pm

In a look at paying more money for debt and goods, an Angus Reid survey out today says:

46% are struggling to pay for groceries.
87% say the rising cost of living is their biggest concern.
Food up 4%
Rent up 4.8%
Gasoline up 33%

And with the massive rise in energy prices, fuel surcharges are rocketing up.

Has anyone looked at taking tropical vacation? A place I have visited in Hawaii in the years past that typically costs me $4,800 all in is currently $18,000 all in at any time over the next 6 months.

#85 Kiril Peev on 10.25.21 at 6:58 pm

DELETED (Anti-vax)

#86 Philco on 10.25.21 at 7:08 pm

#80 yvr_lurker on 10.25.21 at 6:04 pm
———————————————
I’ve talk to some of these people. Most of them are nuts.
I could write a book on blowing up their unrealistic demands.

Here’s what I hate. Garbage plastics (micro and all else) dumped into our environment and being consumed by animals all over the planet.
If they want to bitch they should ask to shutdown all the large cargo ships burning bunker crude…for starters. Their cell phones wouldn’t make it here from China..

#87 Dr V on 10.25.21 at 7:08 pm

82 Soggy – HELOCs are a form of mortgage. An owner can get one as the dwelling becomes the security to the lender. So you would have to have an ownership interest.

I dont see a reason why your folks couldnt have more than one though they would have to be registered in priority (ie a 1st HELOC, 2nd HELOC) and I cant recall ever seeing that.

#88 Reximus on 10.25.21 at 7:09 pm

Some of you will be grandpa/grandpas soon…will you lend/give your offspring any dough before you go?

I would

#89 Shawn Allen on 10.25.21 at 7:20 pm

Money creation and destruction

#83 Dr V on 10.25.21 at 6:39 pm
58 Shawn

“Deposits and therefore money are created when money is borrowed…” yes, agreed

“….and disappears when a loan is repaid.” We say that debt to one person is money to someone else, so it makes sense that the debt repayment eliminates the money.

But this is the part where I can’t connect the dots.

Let’s re-iterate. Simple example – Bank gives loan for $500k for purchaser to buy house. Seller gets $500k credited to account (ie money created) and quickly disburses it over one year, landing in all sorts of accounts (ie still money) Buyer lands a great gig and pays back the loan in that one year.

All the deposits are still there.

what mechanism/action takes place that removes that $500k from the system?

******************************
When the buyer lands a great gig and earns money that money will flow to him/her as her customers or employers pay her. The customer / employer deposit accounts (aka money) will be reduced as her money is built up. Then as she repays the loan the bank will as you said extinguish the loan and the deposit and $500k of deposits / money has disappeared from the system.

But not to worry of course new loans are constantly being taken out creating new deposits / new money as we already agreed.

#90 Summertime on 10.25.21 at 7:21 pm

The banksters takeover of the economy continues unchallenged.

I bet many of these ‘gifts’ are loans against ‘equity’.
Loans driving and used as leverage for bigger loans driving higher and higher valuations in a typical Ponzi scheme on steroids.

With no economy whatsoever accompanying it.

The higher in debt and the more leveraged you are, the ‘richer’ you become as individual and society.

We know how this ends up – with total destruction of savers, currencies, people on fixed income.

Shawn’s theory of money is pathetic.

The goal of this credit super-expansion is simple – replacement of savings based on past labour and capital with ‘new money’ – credit based on nothing and owed to the ‘right and connected’ who have the license to print.

Governments also benefit by reducing their obligations for rightfully earned pensions, benefits etc.

And the cherry on the cake is – they not only destroy your money but also have you paying penalties on ‘earnings’ – however rare those might be – called ‘capital gains’ when inflation is in double digits but they tax you on ‘interest earned’ and
also have you paying banking fees instead of earning rightful interest on your money.

Criminal enterprise in action. The mafia has more integrity.

#91 Km on 10.25.21 at 7:24 pm

@draginfly, plumbers get paid well as they deal with people’s shit, literally. Just like people who snip dog poop out if the bags for cities who get paid $35 an hour. Sure it may not be the highest skilled job but not many want to do it so the pay is higher. My spouse does HVAC and plumbing when he is on call. You would be surprised how most people don’t even know how to turn the water off going to their toilet let alone to their house.

#92 Ponzius Pilatus on 10.25.21 at 7:28 pm

#155 The West on 10.25.21 at 12:33 pm
#17 Quintilian

reply:

What a sad society this has become. Full of anger, resentment, hostility and venom for others. All because of money. – Garth

——————————————————–

The balance of social economics has been irreparably broken by a greedy, self serving, elitist establishment who has seen exponential growth in their “papered” money by destroying the working class. (To be clear, the political opportunists who play on this are doing nothing to make this better. In fact, they’re making it much worse for a financially illiterate society hellbent on what they have learned from the top’s “greed” and “jealousy”.)

Bill Clinton did two things (oh yes – the “people’s man” from the 1990s).

1) Repealed Glass-Steagall (1933) which enabled the gamblers of society to print all the money the needed to drown the working class while capitalizing on fictitious gains – leaving a wake of unfettered inflation behind them. The middle class is gone, so is the opportunity upwards.

2) Set the ground work to off shore the North American middle class by bringing the slave labor of Eastern Asia (namely China) into the World Trade Organization twenty years ago.

As you mentioned in your entry “Lost” – hopelessly so.

North America and our parents in England, have been devoured by the establishment for 20 years (in England since the 80s under Thatcher) ….the centralization of money has utterly gutted the functioning of what was the most robust, and equal, economic circumstances ever created by humans.

Anger, resentment, hostility and venom?? I don’t think their is a real understanding yet of what is going to play out this decade in Canada and the United States. Let us hope and pray that the “anger” is directed where it needs to be.
The boot no longer tastes good
—————
You’re touching on the root causes of what Ecomomists now call “The Great Resignation”.
Millions of workers (white and blue) are quitting or not returning to work.
The motors of economic growth during the last 20 years have mostly been provided by Kapital, leaving the lowly worker in the dust.
Seems the pendulum has swung to far in the Investors’ favor.
And now the lowly minimum pay worker is asking for his/her share.
And they are getting pesky, asking 50k for washing dishes.
Also, as a poster here mentioned, Health care workers who are saving lives and have 4 years post high school education, are making way less than “plummers”, who have nowhere near the education.
As I said before, plumbers are way over paid.
So tax them hard and tax them often.

#93 Summertime on 10.25.21 at 7:31 pm

#45 Dr V on 10.25.21 at 3:33 pm

The problem hits when borrowers cannot pay back the loan. Then the ‘money’ is really gone.

————————

Not really as the loans are securitized and transferred to pension funds and central ‘banks’ come to the rescue and buy bad loans ‘injecting liquidity into the system’.

As a result we have ‘economy on fire’ that can not handle 1 % interest rates. Pathetic.

It is a super-inflation scheme just picking up speed.
We have seen nothing yet. Wooden old houses ‘worth’ 2,3, 5, 10 millions of whatever trash they call ‘money’.

#94 Bartman on 10.25.21 at 7:36 pm

Garth at 81
She has recommended 8-12 months, not 2-3 years. And even that is a ridiculous amount to keep in cash. – Garth

Garth,
How much should one keep in liquid access in regards to a 60/40 portfolio?

The ETF portfolio is totally liquid. – Garth

#95 Philco on 10.25.21 at 7:40 pm

#84 Garth’s Son Drake on 10.25.21 at 6:45 pm
In a look at paying more money for debt and goods, an Angus Reid survey out today says:

Has anyone looked at taking tropical vacation? A place I have visited in Hawaii in the years past that typically costs me $4,800 all in is currently $18,000 all in at any time over the next 6 months.
————-
I had mentioned many blogs ago that the easy cattle travel days are likely over. Air tankers full of peeps off to their watered down resorts and all.
The cost of fuel, increasing taxes, less carriers that can afford to operate and on. Hilarious now… the add on taxes and fees on the not so up front price.
Large portion of the population lived on the margin like royalty, increasing their debt or adding to their mortgage to make it happen.
Not a sustainable plan in my view.
Its going to interesting how the coming years pan out.

#96 Ponzius Pilatus on 10.25.21 at 7:43 pm

#71 cramar on 10.25.21 at 5:19 pm
#5 Sail Away on 10.25.21 at 1:04 pm
Well, look at little TSLA self-driving themselves up 9% today to an all time high. Aw, so cute…

—–

And Tesla passes the $1T valuation mark today, making Musk now worth over $250B! BTW, what is his primary residence? A $50,000 375 sq.ft modular house that he RENTS!

https://www.youtube.com/watch?v=Q6f92kjvuzw

Take that house-horney youngsters! The richest man in the world…RENTS!
————-
Richest Man in the World?
As Nonplussed will ascertain correctly, it’s all on paper.
As soon as Musk starts cristalizing the gains, the followers will smell a rat, and we have another Bre-x.
And Sailo will be back to shooting Grouse and picking mushrooms to feed his family.

#97 Damifino on 10.25.21 at 8:00 pm

#44 Sail Away

This ‘historic weather bomb’ for Vancouver Island seems like another historic overexaggeration. Yawn. So sensationalist those weather forecasters.
——————————–

I don’t blame the weather forecasters. I blame the news directors:

“Hey Chad, can you work Armageddon into tonight’s forecast somehow? No? A little much, maybe? How about a vortex? An atmospheric river? Hey, I’ve got it! A bomb. Let’s go with bomb. Okay… in 5… 4… 3….”

#98 DON on 10.25.21 at 8:08 pm

#44 Sail Away on 10.25.21 at 3:31 pm
This ‘historic weather bomb’ for Vancouver Island seems like another historic overexaggeration. Yawn. So sensationalist those weather forecasters. I’ve sailed offshore in worse weather than this many times:

https://www.weather.gc.ca/marine/weatherConditions-24hrObsHistory_e.html?mapID=02&siteID=06800&stationID=46206

If only we engineers could be so loosey-goosey in our predictions: ‘This bridge will last for a million years!’

Then it fails the next year and nobody cares.

The sky is falling sells. The sky is just fine doesn’t.

*********
The main storm didn’t touch Nanaimo…according to the radar image. Hit North snd South of Nanaimo and on the mainland.
Parksville Coombs Dashwood Browser most likely have trees down everywhere. Power outages. Geography matters on the Island.

#99 Auntie Pasta on 10.25.21 at 8:17 pm

#19 Mike on 10.25.21 at 1:52 pm

” In a world like ours, saving is for suckers.”
That’s uncalled for Garth …
Sure GIC, HISA indeed are a loosing proposition especially considering the high Inflation rates.
I’m OK with you saying that, go ahead and harp on your views that everyone Must invest not too have their nestegg depreciate in value.
I confess it hurts to have some of my funds not producing at this time but I know the time will come when I’ll be very happy to have a good chunk of change in cash to be deployed.
In any case, would you please stop calling savers Suckers?
The view of must be invested at all times because there is no better alternative might get proven to be incorrect soon.
Your blog, your views, I have no problem with any of that but I’m sure you can drive attention to what you want to say without name-calling. Thanks

____________________________________________

Mike, … Mike, … Mike. We’re all adults here.

It’s obvious you’re not capable of handling a little good-natured fun being poked at you, let alone the “stress” of the “ups and downs of investing”. BTW, I haven’t had a dollar sitting on the sidelines for forty years now. As a result, I have the 1st world burden of managing an 8 figure portfolio! You be the judge.

#100 Sail Away on 10.25.21 at 8:17 pm

#98 DON on 10.25.21 at 8:08 pm

The main storm didn’t touch Nanaimo…according to the radar image. Hit North snd South of Nanaimo and on the mainland.

Parksville Coombs Dashwood Browser most likely have trees down everywhere. Power outages. Geography matters on the Island.

——–

The weather data I linked is the La Perouse weather buoy 25 miles offshore of Ucluelet in the open Pacific, not Nanaimo.

#101 Shawn Allen on 10.25.21 at 8:22 pm

Summertime responded

The banksters takeover of the economy continues unchallenged.

Shawn’s theory of money is pathetic.

The goal of this credit super-expansion is simple – replacement of savings based on past labour and capital with ‘new money’ – credit based on nothing and owed to the ‘right and connected’ who have the license to print.

*************************
Can always tell you have an informed analyst when they use the term banksters. Awe, did we forget to own bank shares either directly or through an ETF. Or were they avoided due to the immorality? If so, it’s not too late. If you can’t beat ’em join ’em? Or are you in the If you can’t join ’em, beat ’em (up) camp?

I did not give a theory of money. I gave an explanation of how I understand it works after I did a ton of reading on the subject and took enough financial education to earn nine letters after my name.

Credit is the grease of the economy and is as responsible as anything else for the fact that you can sit in comfort and cry about the system rather than be out scratching for food full time like our not so distant ancestors.

Never have people lived so well and complained so much.

#102 TurnerNation on 10.25.21 at 8:26 pm

Natural gas spiking. A long, cold and expensive winter coming Comrades?

https://finviz.com/futures_charts.ashx?t=NG&p=d1

— Look at the daily changes our globalist-backed leaders are ramming thru.
Kanada the Worker’s Paradise. (Unless you do not submit to the New System. Then, you get fired).
Who would open or move a business to here?

.Toronto Star TorontoStar
Buried in after-hours emails? Ontario to propose ‘right-to-disconnect’ laws
The move would make Ontario the first province in Canada to implement such a measure.

.The Globe and Mail @globeandmail
Ontario introduces legislation to ban non-compete clauses for employees
The Ontario government will introduce proposed legislation on Monday that would ban the practice of imposing non-compete clauses on employees.

—-
—-
Meanwhile Charter rights (movement/travel, association/gathering, protesting) still are SUSPENDED.
The question is not why still but why in the first place. Once you answer that one…

“@tbncdnpoli
There are multiple provinces in Canada with vaccination rates over 90% that still have vaccine passports and restrictions. This isn’t about safety anymore, this is purely politics.
#cdnpoli #vaccinepassports”

#103 Shawn Allen on 10.25.21 at 8:28 pm

Tesla Ain’t no Bre-X

“As soon as Musk starts cristalizing the gains, the followers will smell a rat, and we have another Bre-x.”

***************
Tesla may well be over-valued. I don’t know. I do know I ordered a Tesla on Thursday after I waited a month for an appointment to get a test drive. Hertz is ordering a 100,000.

Sorry, those of us who under-estimated Elon Musk (Many of us heard about him about 15 years ago when he made a fortune as a founder of PayPal) have missed a big opportunity. Sniffing that his many billions are just paper gains is rather pathetic.

#104 Nonplused on 10.25.21 at 8:34 pm

This is another one of those studies where I wonder if it really means as much as one might think it means. Mom is going to die eventually, which means junior will inherit the money currently being advanced at some point, so all this transaction is doing is advancing the timing. Does advancing the timing of the inheritance really create that much additional demand? Hard to say. One could argue that a dead person also frees up a house, but when said house is sold it also frees up a lot of money for the heirs to make downpayments.

So overall I don’t think the bank of mom really makes that much difference. And folks who don’t get a loan from mom probably borrow more than they should in anticipation of an inheritance anyway.

It’s just a fact; kids whose parents have money enjoy more material wealth through life than kids whose parents are broke. Some kids ride in the back of a Mercedes and others ride in the back of a Corolla. Short of outright socialism there probably isn’t anything to be done about it, in which case we will all live in a cold concrete box with poor lighting and only the politically favored will have a car, and it will be a Lada.

#105 Jason on 10.25.21 at 8:35 pm

During the financial crisis didn’t some banks (in the US at least) retract people’s LOCs to cut down on risk? If you rely on a LOC as your emergency fund, you could find it unavailable when you need it most.

Has never happened. – Garth

#106 TurnerNation on 10.25.21 at 8:41 pm

March 2020. The deal closed. Kanada was handed over to the Globalists; no leader is working for us, no decision is made in our interests. We are broke, all culture cancelled. (Our forum host’s flag had to go).

File this under War on Small Business/Life in Kanada.
Kanadians have Stockholm Syndrome and have embraced the system of their oppression.

https://www.blogto.com/eat_drink/2021/10/toronto-cafe-bans-discussions-covid-vaccines/
“”I didn’t open a walk-in clinic. I opened a coffee shop with music and books in the background. Tell me about the last book you have read,” reads the post.”


– Control over our Travel/Movements. Remember, 20 months into the New System and you are not considered Healthy. That concept no longer exists. No you are Asymptomatic.

.Unvaccinated Americans to face tighter COVID testing requirements in new US travel system(usatoday.com)

.Fresh lockdowns in China as local Covid-19 infections spread to 11 provinces (edition.cnn.com)



– Control over our Breeding. Check. Oh those Globalists:

https://pubmed.ncbi.nlm.nih.gov/1874951/
“Over the past 18 years, the WHO Task Force on Vaccines for Fertility Regulation has been supporting basic and clinical research on the development of birth control vaccines directed against the gametes or the preimplantation embryo. These studies have involved the use of advanced procedures in peptide chemistry, hybridoma technology and molecular genetics as well as the evaluation of a number of novel approaches in general vaccinology. As a result of this international, collaborative effort, a prototype anti-HCG vaccine is now undergoing clinical testing, raising the prospect that a totally new family planning method may be available before the end of the current decade”

#107 IHCTD9 on 10.25.21 at 8:51 pm

#56 Philco on 10.25.21 at 4:22 pm
#27 IHCTD9 on 10.25.21 at 2:18 pm
———————————–
Wadda ya got for power? Did I miss that?
My Tundra 14L/100k and Duramax Dully crew cab is 17L/100k but has 4800lb 2 slide camper.
Can ya get me down to 10 on either? Maybe Sail Away can tow me with his TSLA…?
———

It’s a 6.2 Detroit diesel, which means I have no power! Basic RCLB 2wd with a 4L60 (OD), light duty 3/4 ton with a 9.5” SF 14 bolt. I doubt it weighs much over 4000 lbs, 1991, bench seat, roll up windows, AM radio :). It’s the whole package that gets the numbers, but the 6.2 is pretty much unbeatable for mileage on the full size truck front – but it’s a dog (no offence).

My current truck is a 2500HD Crew with 8.1 and Allison 5 speed – 22L/100km combined, and 17-18 on the highway.
Beautiful truck, and I’ll definitely miss it when it’s gone – but I’m making $ome change$!

#108 Dr V on 10.25.21 at 8:54 pm

89 Shawn – thank you. I had to dwell on that a bit but arrived at that scenario – a net zero on the system as a whole upon debt repayment.

It all became moot for me as I thought the bank could just lend that “old” money out again, or lend more “new” money, or lend to more people etc.

Apparently CDIC insured FIs have $4T in deposits (less
than $1T insured) but there is only about $100B of currency in circulation.

Just a mental block for me. Thanks again.

#109 crossbordershopper on 10.25.21 at 9:03 pm

we as a society must understand that up until recently we were responsible for our family and they were inter dependent on us. we are part of a team, a family a society.
i dont understand this my money is mine, and your money is yours, maybe im italian and i see things differently, but my parents money is theres but its also mine, and my daughters money is hers and its mine too. its simple but complicated. I simply cant see why i would have my daughter go pay interest and insurance and rent to some big corporation, when i have un used assets sitting around. why would i do that. what is the purpose of me sacraficing if i cant help my offspring. Its like a talent, or education, it dies with you, but money doesnt. it can be used to benefit, well someone with similar DNA,
i dont understand people who dont help there kids and who have there parents living in a retirement home. its kinda weird in our culture.
Yes, my daughter might turn out to be lazy because she will never go hungry, im ok with that. i would rather have a chubby daughter than a starving stressed out one. if i can make a choice.
traditional canadian culture is poor in general, tossing kids out to go fend for themselves. as they look after there dogs as there children, kinda weird.

#110 Dr V on 10.25.21 at 9:08 pm

93 Summertime

“Not really as the loans are securitized and transferred to pension funds and central ‘banks’ come to the rescue and buy bad loans ‘injecting liquidity into the system’.”

I believe the implementation of these measures indicates there is a problem.

Reminds me of a scene in a documentary-movie of the GFC when treasury and the fed is meeting with the largest “banksters”. One CEO said “our bank is fine, we dont need this money”. Fed response was “We’re
crediting your account $25B – you WILL need it”.

#111 Ponzius Pilatus on 10.25.21 at 9:19 pm

#103 Shawn Allen on 10.25.21 at 8:28 pm
Tesla Ain’t no Bre-X

“As soon as Musk starts cristalizing the gains, the followers will smell a rat, and we have another Bre-x.”

***************
Tesla may well be over-valued. I don’t know. I do know I ordered a Tesla on Thursday after I waited a month for an appointment to get a test drive. Hertz is ordering a 100,000.

Sorry, those of us who under-estimated Elon Musk (Many of us heard about him about 15 years ago when he made a fortune as a founder of PayPal) have missed a big opportunity. Sniffing that his many billions are just paper gains is rather pathetic.
———–
It’s paper money, until you cash the shares in.
Does not matter if it’s one share, or a billion shares.
If it goes down the crapper, everyone shares the misery equally as per their number of shares.

#112 DON on 10.25.21 at 9:24 pm

#100 Sail Away on 10.25.21 at 8:17 pm
#98 DON on 10.25.21 at 8:08 pm

The main storm didn’t touch Nanaimo…according to the radar image. Hit North snd South of Nanaimo and on the mainland.

Parksville Coombs Dashwood Browser most likely have trees down everywhere. Power outages. Geography matters on the Island.

——–

The weather data I linked is the La Perouse weather buoy 25 miles offshore of Ucluelet in the open Pacific, not Nanaimo.

*******

Good to know….but the Storm is in the Georgia Strait and on the East Coast of the Island like a wind funnel. Two years in a row I had the power out for 8 days as the roads were covered with fallen trees. Needed a chainsaw to make one’s way to the highway. After that they started installing generstors in the new builds as most are no longer built with wood stoves. Lots of retirees were left stranded and cold.

Sooke got hit with rain and some wind but mild unlike the the other side of the Island. Rained in Victoria but only windy yesterday for 2 hours.

Stopped raining hard just in time for Soccer pratice.

#113 crowdedelevatorfartz on 10.25.21 at 9:24 pm

@#66 The West

https://wtfhappenedin1971.com/

Interesting charts.

#114 Calguy on 10.25.21 at 9:35 pm

Reading about an “extinction rebellion” protest at YVR is starting to convince myself the slow death of Canada before our eyes. No critical thinking going on. If people are so against oil and gas then start by shutting off gas to heat your home. See how the winter goes. We have allowed too much protests going on without looking at other side of issues due to polarizing media and government. And the people that want more taxes on wealthy don’t realize that doctors too. I hear of young doctors leaving. Why spend 10-15 years in school to hand over over 50 percent of your income. How about the plumbers and electricians? Recently got quoted about 1000 bucks for two hours work replacing faucet and fixin toilet. Crazy times! Housing has gotten ridiculous in lower mainland and Toronto. Look in the states and your money goes a lot further. Again media has sent message via HGTV that people should own a home in their twenties.

#115 Nonplused on 10.25.21 at 9:37 pm

#59 Ponzius Pilatus on 10.25.21 at 4:33 pm
#46 Joseph R. on 10.25.21 at 3:39 pm
#22 Charter of Rights on 10.25.21 at 1:57 pm

Rights are clear but there are not absolutes in law.

Who accuses the charter of having an identity crisis? What are their evidence?
—————-
There are no absolute rights unless you’re religious.
I.e. The rigt to Freedom is relative.
Freedom to a slave may be walking around without chains.
Freedom to an Albertan may be being able to go shopping without a mask.

—————————————–

Freedom doesn’t exist.

#116 Nonplused on 10.25.21 at 9:43 pm

#64 Linda on 10.25.21 at 5:06 pm
#49 ‘macduff’ – I keep thinking about the difference between giving a fish or teaching how to fish. I remember how as a child there would be widows who had 1) never paid a bill or had any idea of finances because their husband took care of all that; 2) never learned to drive, ditto. Basically helpless & having to acquire skills or figure out how to pay the bills. Yes, the idea was their children would take care of them – always supposing there were children in the picture. Talk about a bad situation to be in. Working for a living may suck at times, but being able to do for oneself is the gift that keeps on giving.

————————————–

I think I’d have been just as happy if my dad had taught me how to run a real estate empire as opposed to repairing my own car.

Don’t feel sorry for the poor rich kids who don’t know how to fish. Being able to do open heart surgery will get them along just fine.

#117 Philco on 10.25.21 at 9:48 pm

#107 IHCTD9 on 10.25.21 at 8:51 pm
#56 Philco on 10.25.21 at 4:22 pm
#27 IHCTD9 on 10.25.21 at 2:18 pm
———————————–
HAHA the old Jimmy! Ya low on juice so no biggie unless your towing and aircraft carrier. 1 min in but all good. lol
https://www.youtube.com/watch?v=P8RxFWm6Xu4

Ya the 8.1 just to big for our super size gas prices these days.
Thats crazy on the 6.2 cool running!
AND new new pickups are nutty on how much diesel power their punching. Who needs it??!
My 2006 6.6L DirtyMax fits the bill smooth, clean, decent power, mileage and ya can wrench it but she’s pretty solid.
We got the Leaf Plus for getting groceries 1.2 cents KM. CAN’T beat that unit.
The Older Tundra if I feel like working.
AND If we want to hit the highway the Dirty fits the bill for packing the cow camper.
Whats nuts is I bought the Dirty 3 yrs ago worth more now and the Tundra 9yr and its not far off what I paid. They are garage kept mint and anally maintained cause I’m anal I’m told. Terrible to hear

#118 Nonplused on 10.25.21 at 10:02 pm

#96 Ponzius Pilatus on 10.25.21 at 7:43 pm
#71 cramar on 10.25.21 at 5:19 pm
#5 Sail Away on 10.25.21 at 1:04 pm
Well, look at little TSLA self-driving themselves up 9% today to an all time high. Aw, so cute…

—–

And Tesla passes the $1T valuation mark today, making Musk now worth over $250B! BTW, what is his primary residence? A $50,000 375 sq.ft modular house that he RENTS!

https://www.youtube.com/watch?v=Q6f92kjvuzw

Take that house-horney youngsters! The richest man in the world…RENTS!
————-
Richest Man in the World?
As Nonplussed will ascertain correctly, it’s all on paper.
As soon as Musk starts cristalizing the gains, the followers will smell a rat, and we have another Bre-x.
And Sailo will be back to shooting Grouse and picking mushrooms to feed his family.

—————————————

It seems the Donald has finally figured out how to pull a mark to market:

https://markets.businessinsider.com/news/stocks/donald-trump-spac-digital-world-acquisition-own-half-dwac-stock-2021-10?op=1

He’s managed to about triple his “net worth” in the 10 months since he’s been president. At least the way Elizabeth Warren and Sunshowers counts it.

#119 Overheardyou on 10.25.21 at 10:03 pm

If Bank of Mom still has a mortgage on their property but takes a HELOC to fund junior’s house purchase would this be considered a second mortgage on the parents? Since I doubt the kids would cover the cost of the HELOC because they can’t even afford to buy without borrowing massively.

#120 BCWally on 10.25.21 at 10:07 pm

Funny how Mr. Tal didn’t mention the reverse mortgage or parental HELOC contributors.
Likely because there is no data available, only guesses.
If I was an executive at the CMHC, Mr. Macklem, or a major bank CEO I would be looking to get exactly that data for a long overdue risk assessment.
I hope one of those institutions does so the rest of us can invest accordingly and avoid a possible run on the loonie.

#121 mike from mtl on 10.25.21 at 10:11 pm

#91 Km on 10.25.21 at 7:24 pm
@draginfly, plumbers get paid well as they deal with people’s shit, literally.
/////////////////////////////////////////////////////////

Exactly. Best mate is a sole-prop Plumber and he does earn that salary. Granted the easy jobs like replacing a crappy tap or fixing the last guy’s hack job sink drain seem like a ripoff. But laborious jobs replacing a water heater, finding a leak behind gyproc with minimal mess, relocations, anything to do with Toilets and the worst: main drains are.. yeah.

Electricians as well. The basic concept is not terribly complex, you’d think hazards for a sparky are shocks but not unless you’re careless. It’s more getting to the job; ladder work is inherently dangerous, Skyjack, roofs and heights is risky. Busting your hand or a leg and not working for a month or two could be devastating – can’t call in sick to yourself.

#122 Die Hard on 10.25.21 at 10:15 pm

#106 TurnerNation on 10.25.21 at 8:41 pm

File this under War on Small Business/Life in Kanada.
Kanadians have Stockholm Syndrome and have embraced the system of their oppression.

=====

Hey TN, I’ve seen Die Hard. I’m pretty sure you mean, Helsinki Syndrome…as in Helsinki, Sweden.

https://www.youtube.com/watch?v=2lqnhA9d_B8

:-)

#123 BoM == reverse mortgage and Asset Inflation on 10.25.21 at 10:32 pm

If mom’s house is paid off and now worth $2m
If mom made her retirement plans back when housing was only $500K, then mom’s net worth has shot up 1.5m more than budgeted.

Is it wrong to liquidate other assets to help the kid move out of the house? I don’t think so.

Put bluntly, I strongly believe all that money printing and debut is causing ASSET inflation, real estate, stocks, etc. This is all Trudeau’s fault… and all those millennials who voted for him, voted for this whether or not they realize it.

Am I wrong Garth?

#124 westcdn on 10.25.21 at 10:44 pm

My aunt Nickie had a heart for me. She would even pick the eyes of mashed potatoes for me. I heard her to yell where is David and does he have a screwdriver? I would return it to her. My father called her the woman with the big heart but I thought my mother was better.

The other woman who had influence on my life was my 1st grade teacher. She would rain on books at me. But she knew what she was doing.

There was the son of the boss in the camp and we had a problem. I did like his attitude so we fought although I was much smaller. I did win most battles despite his cheating.

#125 John Foster on 10.25.21 at 11:09 pm

IHCTD9…

My Camaro SS gets unGodly mileage on the highway. 600km to Montreal averaged 8.3L/100km and that’s with liberal use of the left lane. The tranny helps, but shutting off 1/2 the cylinders is the real trick. Of course even running 4 cyl, it’s still a 3.1L engine…

#126 IHCTD9 on 10.25.21 at 11:34 pm

#117 Philco on 10.25.21 at 9:48 pm
#107 IHCTD9 on 10.25.21 at 8:51 pm
#56 Philco on 10.25.21 at 4:22 pm
#27 IHCTD9 on 10.25.21 at 2:18 pm
———————————–
HAHA the old Jimmy! Ya low on juice so no biggie unless your towing and aircraft carrier. 1 min in but all good. lol
https://www.youtube.com/watch?v=P8RxFWm6Xu4

Ya the 8.1 just to big for our super size gas prices these days.
Thats crazy on the 6.2 cool running!
AND new new pickups are nutty on how much diesel power their punching. Who needs it??!
My 2006 6.6L DirtyMax fits the bill smooth, clean, decent power, mileage and ya can wrench it but she’s pretty solid.
We got the Leaf Plus for getting groceries 1.2 cents KM. CAN’T beat that unit.
The Older Tundra if I feel like working.
AND If we want to hit the highway the Dirty fits the bill for packing the cow camper.
Whats nuts is I bought the Dirty 3 yrs ago worth more now and the Tundra 9yr and its not far off what I paid. They are garage kept mint and anally maintained cause I’m anal I’m told. Terrible to hear
— ——

Yeah, what are those DirtyMax (I still laugh when I hear that!) trucks putting out these days, 1000 ft-lbs of torque and like 500 hp? Insane factory power with S class appointments (and price). The 8.1 makes 450/340 lol! The 6.2 makes 275/160 – double LOL!!

Prices are nuts, and I bet the HD will draw more than what I paid 4 years ago too – it’s absolutely cherry inside and out, almost no winters and 170K on the clock. But it is indeed a dinosaur, someone really needs to swap a 12V 6BT into it!

The C2500 can tow 6000, that sucks bigly – but good enough for building materials and firewood. At least it sounds the part at idle. I’m going to have fun trying to get 30mpg out of it :).

#127 Ponzius Pilatus on 10.25.21 at 11:47 pm

#115 Nonplused on 10.25.21 at 9:37 pm
#59 Ponzius Pilatus on 10.25.21 at 4:33 pm
#46 Joseph R. on 10.25.21 at 3:39 pm
#22 Charter of Rights on 10.25.21 at 1:57 pm

Rights are clear but there are not absolutes in law.

Who accuses the charter of having an identity crisis? What are their evidence?
—————-
There are no absolute rights unless you’re religious.
I.e. The rigt to Freedom is relative.
Freedom to a slave may be walking around without chains.
Freedom to an Albertan may be being able to go shopping without a mask.

—————————————–

Freedom doesn’t exist.
——————————
I know.
But countries are still fighting to protect it.

#128 R on 10.26.21 at 12:43 am

Tesla is a global manufacturer, with a profit per vehicle soon to approach 30-40%.It is a manufacturing dregnaught that competitors cannot match. The goal is not to out produce Tesla at any cost, compeditors are losing $ per sale. Where is the fun in that?
https://www.teslarati.com/tesla-china-tesla-bot-teaser-video/

#129 Philco on 10.26.21 at 12:45 am

IHCTD9
———-
Best and cool little truck you could build IMO.
Tie a 3.9B Cummins with a older Tacoma / Tundra or whatever solid Compaq pickup that will last . Get the gearing right and PA POW that thing will be a tractor and would sip the fuel. I got those in my Case backhoes….Prolly the best durable power unit ever built.
Yes low horsey’s but great torque…. just dial up the turbo.
I actually talk to Toyota 14 years ago and asked why they didn’t produce a diesel in KANADA that would compete with Ford Dodge ect. They said emissions here….What A joke.
When I was in the Philippines (Numerous time) the SUVs are pretty much all diesels and the have plenty of power and get great mileage. I drove new Toyotas, Isuzu’s and Fords. I was VERY impressed. Lots of torque with 6 speeds and that the key to mileage and reliability.
Its political as hell somehow. Ya can do it in KANADA.

#130 Jon B on 10.26.21 at 1:16 am

Thanks for another great post GT.

#131 Balmuto on 10.26.21 at 2:35 am

You don’t keep a cash fund for emergencies.

You keep a cash fund so that you have a buffer between you and your LOC.

Otherwise, it’s amazing how many “emergencies” you can up with to tap into that sucker.

#132 Bob Swan on 10.26.21 at 3:57 am

Trevor, IMHO you should never run on zero cash , be debt encumbered or reliant on discretionary demand loans. That’s walking on suicide. ‘Emergencies’ happen and when they do it’s usually the day after they’ve called your LOC and HELOC and you and your wife both lost your jobs on the day the stock markets crashed after an uninsured hurricane. Sounds funny, it happens all the time.

Cash is like your B&D, a cushion against the impossible. Rich people can purr about having no worries, poor people can’t. Always have a little “F You” money under the mattress” just in case.

#133 Summertime on 10.26.21 at 5:29 am

#101 Shawn Allen on 10.25.21 at 8:22 pm

You gave an explanation on how theory of money should work, not on how it is ‘working’ now.

Central ‘banks’ have no place in providing ‘liquidity’, it implies banks are irresponsible in lending and have no reserves on their loans.

That and the ‘insurance’ on loans removes the risk from the lenders and creates competition in lending.

Responsible credit based on past labour and sold capital is the grease of the economy, not mad credit issuance and money printing.

You can’t have 20, 30, 40 % money supply increase in a year and call it normal or lie that there is no inflation.

You might be fine with your meager debt slave existence but normal, critically thinking people, not on ganja all the time, have the right to express their opinion.

SFH is worth 30 years net income in GTA, a condo – 20 and people should not complain and be happy?

The former boss of Goldman Sacks said that they do the gods work. To burry the stupid apparently.

#134 Summertime on 10.26.21 at 5:33 am

#101 Shawn Allen on 10.25.21 at 8:22 pm

Watch ‘the big short’ and ‘an inside job’ – a movie and a documentary about the GFC. We are 3 times worse at the moment than in those movies.

Are you going to see a Canadian movie about our problems? Never ever, here you are thought to obey and to ‘not rock the boat’. Except it is now sinking fast.

#135 Steven Rowlandson on 10.26.21 at 7:48 am

House inflation is fed by low interest rates intended to save government from the consequences of it’s own excessive borrowing and the tax free profits on residences plus the greed for higher commissions from higher prices on properties by realtors. Jacking up prices is too beneficial for special interests who seek to gain by the stroke of a pen and involves no real work and puts others hopelessly in to debt if they get sucked into signing up for it.

#136 crowdedelevatorfartz on 10.26.21 at 8:16 am

@#164 Calguy
“And the people that want more taxes on wealthy don’t realize that doctors too. I hear of young doctors leaving. Why spend 10-15 years in school to hand over over 50 percent of your income. How about the plumbers and electricians? Recently got quoted about 1000 bucks for two hours work replacing faucet and fixin toilet. Crazy times!”

+++

Yep.
The sheeple think it’s tough to get a doctor now?
Just wait.

As for $1000 for “fixin” a toilet and sink.
Assume $100/hr labour.
Driving to and from your home in Vancouvers “Traffic Calmed” ( remove lanes and insert empty bicycle lanes) streets eats 2 hours of the clock.
Whats wrong with them? Plugged, leaking?
Can’t you fix em” yourself?
What if the toilet cracks when they are removing it they have to pay for a new one. Maybe you need a new one.
Same with the sink.
What do you think new toilets and sinks cost IF you can even get them?
Add in company liability insurance, WCB, truck lease, etc etc etc. and hiring a van to arrive at your house to fix your toilet and sink…..aint so cheap.
OR you can do it yourself because….they’re busy and the phone is ringing off the hook.
Dont blame the trades for charging big bucks.
Blame the idiots that sent their kids to university to get degrees for a Bachelor of Basket Weaving as the trades schools languished.

Report back on the age of the guy or guys that show up one of them is probably in his late 50’s and watch to see if his cellphone is constantly ringing with other customers who will bitch about the cost but have NO ONE else to go to..

Dirty hands = fat bank accounts.
:)

#137 IHCTD9 on 10.26.21 at 8:23 am

#127 Philco on 10.26.21 at 12:45 am
IHCTD9
———-
Best and cool little truck you could build IMO.
Tie a 3.9B Cummins with a older Tacoma / Tundra or whatever solid Compaq pickup that will last
___

Yep, awesome motors. There was a time they could be picked up for 1500.00 in good shape. Now everyone knows and they’re 4-5K well used. If I did a small diesel 1/2 ton right now, I’d probably go with an old 4-5 cyl MB engine. They make good HP, are very light, pretty cheap, and all mechanical.

A great swap for a small truck is the VW AAZ 1.9 TDI all mechanical engine (pretty rare now). There is a company in BC that makes adapter plates for the TDI series to all kinds of transmissions. A TDI Ranger RCSB 2wd 5 speed OD gets an easy 35 MPG and can do 40 MPG on the highway! No one has done a full size with a TDI, but there is a plate for it!

I don’t think I’d ever own a new modern diesel. Way too expensive to repair, DPF’s and DEF to buy, and they don’t get good fuel mileage anymore! At some point, enthusiasts are going to take a newer diesel, strip all the electronics and emissions off, and adapt an old school mechanical injection system, and somehow make it work well. Those would be the ultimate as they would make even more power, but suddenly start sipping fuel like their old school brethren :).

#138 crowdedelevatorfartz on 10.26.21 at 8:24 am

Gee perhaps this British politician should take lessons from a Canadian.

https://www.reuters.com/world/uk/uk-lawmaker-should-be-suspended-over-egregious-paid-lobbying-watchdog-2021-10-26/

Canadian civil servants and politicians usually wait until after they retire to go work for the companies they lobbied for.

#139 Charter of Rights on 10.26.21 at 8:59 am

#125 Ponzius Pilatus on 10.25.21 at 11:47 pm
#115 Nonplused on 10.25.21 at 9:37 pm
#59 Ponzius Pilatus on 10.25.21 at 4:33 pm
#46 Joseph R. on 10.25.21 at 3:39 pm
#22 Charter of Rights on 10.25.21 at 1:57 pm

Rights are clear but there are not absolutes in law.

Who accuses the charter of having an identity crisis? What are their evidence?
—————-
There are no absolute rights unless you’re religious.
I.e. The rigt to Freedom is relative.
Freedom to a slave may be walking around without chains.
Freedom to an Albertan may be being able to go shopping without a mask.

—————————————–

Freedom doesn’t exist.
——————————
I know.
But countries are still fighting to protect it.

——————————

NO! Say it ain’t so!

I want to feel useful.

I want to protect people.

I want to make a difference.

I want to contribute!

Say it ain’t so.

Tell me that I’m not just some illusion.

Tell me I matter!

#140 IHCTD9 on 10.26.21 at 9:12 am

#123 John Foster on 10.25.21 at 11:09 pm
IHCTD9…

My Camaro SS gets unGodly mileage on the highway. 600km to Montreal averaged 8.3L/100km and that’s with liberal use of the left lane. The tranny helps, but shutting off 1/2 the cylinders is the real trick. Of course even running 4 cyl, it’s still a 3.1L engine…
___

GM really hit a home run with that set up. I’ve heard multiple claims of 30+ MPG from C7 Vette owners. The C8 is EPA rated at 27 MPG highway (that’s all USG). My bro’s 6.2 (gas)/8 speed Sierra 4×4 Crew gets 10.5/L 100km on the highway. Hard to beat – and still a simple pushrod V8 that can trace its architecture back to the mid 50’s!

Gas engines getting better, diesel’s getting worse – at least on MPG.

#141 Three Mile Island on 10.26.21 at 9:16 am

#72 Three Mile Island

Was listening to old episode of Ideas on CBC about Counting the Cost of Nuclear Power, with Lister Sinclair. A gripping 2 episodes radio-drama about how the accident went down. Here, you can enjoy this incredible trip back here in the archive:
https://archive.org/details/CBCIdeas-CountingTheCosts-ThreeMileIsland/Part+1+-+October+13%2C+1986+-+Three+Mile+Island%2C+I-.mp3

Many parallels actually of TMI to our pandemic event with lack of data, lack of info, poor decision making, wrong decisions being made, information being withheld, denied, overlooked, etc.

But two things were truly fascinating to me and really stood out.

First, the fact that the best experts, physicists, actual designers of the plant and top nuclear minds from all the other nuclear reactor makers couldn’t figure this event out. They couldn’t answer key questions. Most fascinating of all, they appeared to not be asking the key questions that were obvious – like “what condition was the core in” and overlooking obvious evidence, like the fact that hydrogen explosion occurred – they felt it, heard it and saw it register on meters, but they refused to believe it and simply threw away the key data into the “faulty instrumentation read out error” bin and carried on the wrong path.

Second, was the psychological impact on the people who were evacuated highlighted in episode 2. It immediately made me wonder about the scale of the psychological impacts on people of this little thing that’s going on right now. I guess that cost will become obvious only in the future, just like it became obvious long after TMI.

——

Lister Sinclair – what a gentleman he was. This quality of his radio content was nothing short of art.

However, now that I finished this series, a little tidbit update of information to report about Three Mile Island to make you ponder Nuclear Power.

Unit 2 in which the meltdown happened, has been in process of being cleaned up since the accident in 1979. This cleanup will apparently conclude in…2037! Estimated, of course. 68 years.

Unit 1 continued to operate until September 2019. It will take 60 YEARS to decommission Unit 1! 45 years in operation, 60 years to clean up the mess.

6 decades, at an estimated cost of $1.2B. You just know that’s a completely made up number and will likely quintuple.

#142 crowdedelevatorfartz on 10.26.21 at 9:30 am

@#126 R
“It is a manufacturing dregnaught that competitors cannot match. ”

+++

While I agree that Ford, GM, Toyota were asleep at the wheel…
Tesla is way overvalued.
Lets see how Tesla handles months or years long , back orders., auto recalls, etc.
Tesla a game changer…yes.

A dreadnought?

https://en.wikipedia.org/wiki/HMS_Dreadnought_(1906)

Hardly.
Musk is a good salesman.

#143 Ponzius Pilatus on 10.26.21 at 9:43 am

115 Nonplused on 10.25.21 at 9:37 pm
#59 Ponzius Pilatus on 10.25.21 at 4:33 pm
#46 Joseph R. on 10.25.21 at 3:39 pm
#22 Charter of Rights on 10.25.21 at 1:57 pm

Rights are clear but there are not absolutes in law.

Who accuses the charter of having an identity crisis? What are their evidence?
—————-
There are no absolute rights unless you’re religious.
I.e. The rigt to Freedom is relative.
Freedom to a slave may be walking around without chains.
Freedom to an Albertan may be being able to go shopping without a mask.

—————————————–

Freedom doesn’t exist.
——————————-
Tell that to the refugees from Afghanistan.

#144 IHCTD9 on 10.26.21 at 9:44 am

#131 Summertime on 10.26.21 at 5:29 am

SFH is worth 30 years net income in GTA, a condo – 20 and people should not complain and be happy?
____

I’d have to say the GTA is starting to get sorted as of last year. Big exit happening for a bunch of reasons. All stripes, and all looking for a better quality of life and lower cost of living. I think the GTA has hit the limit for new home buyers who can’t, or won’t rely on family money for a DP. Or it’s just too much to pay for what you’re getting and the answer is just “no”.

Like I’ve said many times, the GTA is well on the way to becoming a landing pad for newcomers where just about every new arrival makes plans to leave once they get set up and save a bit. Only an idiot would try to live in the GTA upon the realization of what life will be like for them at this point.

Attaining prosperity in Toronto is so far gone that even the comfort and convenience of the various GTA National and Ethnic burbs are failing to keep immigrants in. None of them came here to bust their @$$es just to live in someone else’s basement for life. That’s pretty much where things are at for anyone just starting out in the GTA, no matter where they were born.

Of course – small town Ontario is going to right to hell on the affordability front as well. Maybe everything south of 7 will be an overpriced hurricane of stupidity in 10 years…

#145 Ponzius Pilatus on 10.26.21 at 9:56 am

#134 CEF
Maybe you should take some classes in basket weaving or knitting.
I heard it helps people relax.

#146 crowdedelevatorfartz on 10.26.21 at 9:58 am

Stop the Presses! Stop the Presses!

Little potato is shuffling the deckchairs on the Titanic.

https://vancouver.citynews.ca/2021/10/25/justin-trudeau-cabinet-liberals-hajdu-freeland/

Our non finance minister is staying as finance minister.

Our Defense Minister of color was , well….. too much a man. Gone.

Yes Ladies and Gents(He/She/They) the political correctness continues ad nauseum……

#147 Dharma Bum on 10.26.21 at 10:25 am

#92 Ponzius Pilatitius

As I said before, plumbers are way over paid.
So tax them hard and tax them often.
——————————————————————————————

You might change your tune when the sewers of Bengal back up into your breakfast.

#148 Shawn Allen on 10.26.21 at 10:29 am

Money Creation

#131 Summertime on 10.26.21 at 5:29 am
#101 Shawn Allen on 10.25.21 at 8:22 pm

You gave an explanation on how theory of money should work, not on how it is ‘working’ now.

Central ‘banks’ have no place in providing ‘liquidity’, it implies banks are irresponsible in lending and have no reserves on their loans.

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

Blah blah, I doubt that either of us has figures on how much “liquidity” the Bank of Canada is providing specifically to our banks. Do we know who the central bank is buying bonds from (banks versus pension funds and other investors)

I analyze the reports of Royal Bank and a small bank extremely closely. Neither relies on the Bank of Canada.

I am placing some of my cards on the table and showing you can MBA. Can you match that? If so I have two other advanced financial designations in the wings .

You call me a debt slave with zero knowledge of my finances. Weird. It is you and not me that seems to be bitter about banks. They work how they work. You can either go about increasing your wealth in the system we live in or go spit in the wind about it. (P.S. you might want to wipe your face it is getting messy.)

#149 Shawn Allen on 10.26.21 at 10:36 am

Rogers and Tax Evasion, I mean Tax voidance

So why does Rogers Communications have multiple voting shares? That’s to maintain family control. Okay let’s call that fair enough even though some would criticize that.

But why do they have this “Voting Trust” that Edward Rogers is using? Why aren’t the various family members holding and voting their multiple vote shares individually?

I think you find that the Trust was set up to avoid or defer (for a long time) income tax on the death of the founder Ted Rogers.

I mean, remember the stories in the news about how the family had to sell millions of dollars in shares upon his death to pay the huge capital gains tax his estate faced? Me neither, ’cause it never happened. That’s because in this country “taxes are for the middle people”. Not the poor and not the rich. (And yes, the mega rich get taxed on their taxable income, but it’s what they don’t have to report that is the bigger concern.)

And the middle people hate taxes so much that most of them actually defend the huge tax breaks for the rich. Not me.

The company Ted Rogers founded pays $490 million a year, on average, in corporate income tax. It created jobs for 26,000 people, who pay income tax. The officers and directors pay tax. Hundreds of Rogers suppliers and contractors pay tax. All this helps pay for that defined benefit pension you keep mentioning. But, not enough for you? – Garth

#150 Dharma Bum on 10.26.21 at 10:38 am

#132 Summertime

Are you going to see a Canadian movie about our problems?
——————————————————————————————

Hah! Canadian movies.

Other than some documentaries produced by the NFB, Canadian movies are like low budget student films from a 3rd rate university fine arts department.

Perhaps a hack production using a 16mm film camera, starring deceased Canadian superstars like Bruno Gerussi and John Vernon would accurately convey the current state of our economy and governmental leadership.

#151 just say no on 10.26.21 at 10:43 am

if the house value rises 50% after the purchase, and the kid sells does mom demand her profit?
what if the offspring hooked up with the wrong bedmate and the now common law demands half the gain as well? what if the bedmate never contributed a dime but uses the relatinship card? real life with real people can get real messy.

#152 Summertime on 10.26.21 at 10:43 am

#146 Shawn Allen on 10.26.21 at 10:29 am

You can’t be serious by knowing so little and pretending so much.

Could you please disclose those education institutions so we can avoid it?

#153 Ponzius Pilatus on 10.26.21 at 10:44 am

#147 Dharma Bum on 10.26.21 at 10:25 am
#92 Ponzius Pilatitius

As I said before, plumbers are way over paid.
So tax them hard and tax them often.
——————————————————————————————

You might change your tune when the sewers of Bengal back up into your breakfast.
—————————-
I hear the Germans are designing a robot that can hold a wrench.
And it looks like CEF.

#154 Doug in London on 10.26.21 at 10:52 am

@Ponzius Pilatitius, post #92 and Dharma Bum, post#147:

You have to work with the system and not against it. If you’re older and need some plumbing work done, look up how to do it on YouTube and do it yourself. If you’re younger, like finishing high school and don’t mind getting dirty on some jobs this is your GOLDEN OPPORTUNITY! There’s a shortage of trades people out there now. Get your application in for an apprentice out there RIGHT AWAY!

#155 Ponzius Pilatus on 10.26.21 at 11:00 am

#4 Vocal Edit on 10.25.21 at 1:02 pm
Dolce Vita, do you know what the Green Pass is called in Greece?

Freedom Pass!
—————————
You know what French Fries are called in “Deep in the heart of Texas”?
Freedom Fries!

#156 Quintilian on 10.26.21 at 11:03 am

“There are two big takeaways from bank economist Benny Tal’s shocking new report.”

Benny is a mortgage/RE pumper extraordinaire , maybe the “report” is a cleverly disguised sales pitch, just like all the other reports put out by the RE Cartel and the banks.

#157 Damifino on 10.26.21 at 11:13 am

#146 crowdedelevatorfartz

Our Defense Minister of color was , well….. too much a man. Gone.
—————————————

The problem was he was too much useless.

#158 Sail Away on 10.26.21 at 11:39 am

#142 crowdedelevatorfartz on 10.26.21 at 9:30 am

Tesla is way overvalued.

Lets see how Tesla handles months or years long , back orders., auto recalls, etc.

Tesla a game changer…yes.

Musk is a good salesman.

——-

Elon is good at a lot of things. Let’s examine a theoretical investor whose holding is up 6070% since 2013. But, let’s assume he wasn’t on this site to post the position in 2013, so first mentioned it here in 2019.

TSLA is +3517% since then. If our theoretical investor had $40k invested in 2019, it would now be worth around $1.4M.

That theoretical investor would be pretty pleased today in a purely hypothetical way.

#159 NEVER GIVE UP on 10.26.21 at 11:43 am

#20 TRON on 10.24.21 at 12:13 pm

I don’t disagree with wanting a utopian society but having one narrative that can’t be challenged for fear of being cancelled is dangerous and needs to pushed back on hard.
==============================

I think that cancelling people has only served to harden views and teach people to keep their hardened views to themselves. Like in the Soviet Union era and now China whereby words can get you into a lot of trouble.
We are now no better. We live in fear of saying the wrong thing.
It is ironic that there are certain words that only certain colored skin people can say and others cannot even in the non harmful context of education.

https://www.insidehighered.com/news/2019/02/01/professor-suspended-using-n-word-class-discussion-language-james-baldwin-essay

https://www.breitbart.com/politics/2021/06/09/12-people-who-were-cancelled-for-using-the-n-word-like-hunter-biden/

#160 IHCTD9 on 10.26.21 at 11:58 am

#136 crowdedelevatorfartz on 10.26.21 at 8:16 am

Add in company liability insurance, WCB, truck lease, etc etc etc. and hiring a van to arrive at your house to fix your toilet and sink…..aint so cheap.
OR you can do it yourself because….they’re busy and the phone is ringing off the hook.
Dont blame the trades for charging big bucks
____

That’s the thing folks forget about. the cost of doing business. Government keeps driving it up. Just take auto insurance and fuel prices in BC and compare them to Ontario. It’s a clear demonstration of how bad government drives up costs for everyone. There is no actual reason BC’ers need to pay so much more, it’s 100% government inflicted and has provided zero benefit to anyone (except government, of course).

#161 WTF on 10.26.21 at 12:12 pm

Says a nobel laureate who predicted the GFC and penned Irrational Exuberance. He provides some great historical calculations and context. As usual.

https://www.project-syndicate.org/commentary/us-housing-market-long-term-price-outlook-by-robert-j-shiller-2021-10

#162 Shawn Allen on 10.26.21 at 12:15 pm

The company Ted Rogers founded pays $490 million a year, on average, in corporate income tax. It created jobs for 26,000 people, who pay income tax. The officers and directors pay tax. Hundreds of Rogers suppliers and contractors pay tax. All this helps pay for that defined benefit pension you keep mentioning. But, not enough for you? – Garth

*********************************
Thank you, that’s correct. I would also like to see that Ted Rogers’ Estate had to pay big capital gains tax on the capital gain in his Rogers shares just like middle class people have to pay on the capital gain on their cottages and taxable account investments. As it is, it would only be 50% taxed. But I suspect it was a lot lower than that by using the family Trust.

Royal Bank pays a lot of taxes and employs a lot of people but I have a capital gain on Royal bank shares I owned I pay tax. My should Ted Rogers’ estate not?

My pension was funded 50% by my own contributions and the other 50% by the Alberta government which apparently figured that was part of my fair wages. And funded by a lot of growth in those contributions invested. Not sure Alberta collects a lot of taxes from Rogers and its employees and share owners but there would be some. Those taxes would have helped to pay my wages and other benefits that I apparently earned.

#163 James on 10.26.21 at 12:19 pm

#147 Dharma Bum on 10.26.21 at 10:25 am

#92 Ponzius Pilatitius

As I said before, plumbers are way over paid.
So tax them hard and tax them often.
——————————————————————————————

You might change your tune when the sewers of Bengal back up into your breakfast.
_________________________________________
Plumbers earn every penny of their income. Ask yourself a question “Do feel up to the task of ripping out pipes full of someone else’s shit?”
Not likely, most of the people out there would heave and the smell of toilet pipes.

#164 Shawn Allen on 10.26.21 at 12:21 pm

Summertime

I apologize for being rather harsh. My original point was that when people say Canadians have excess savings as a population it could not be any other way. The excess borrowing by some created the excess cash deposits that others now own and they will remain in the banking system owned by someone or some business until the debt is repaid.

You brought up other criticisms of banks which were really not relevant to my point about how money is created (printed if you will) and later destroyed by borrowing and repayment. I should not have responded given it was off my topic.

#165 IHCTD9 on 10.26.21 at 12:24 pm

#151 just say no on 10.26.21 at 10:43 am

…what if the offspring hooked up with the wrong bedmate and the now common law demands half the gain as well? what if the bedmate never contributed a dime but uses the relatinship card? real life with real people can get real messy.
_____

The quick answer to that is it’s gone. If I ever found myself tempted to help out the kiddies with a DP and they had a significant other, my first call would be to a lawyer.

#166 Nick on 10.26.21 at 12:26 pm

Oh boy…don’t let Dave Ramsey here this! He insists on 3-6mo “emergency fund” in a HISA. I, however, invested my 3-6mo into VCNS. A relatively low-risk ETF as I think having it sitting in cash, like you mentioned, is stagnant and not able to keep up with inflation.

#167 IHCTD9 on 10.26.21 at 12:29 pm

#157 Damifino on 10.26.21 at 11:13 am
#146 crowdedelevatorfartz

Our Defense Minister of color was , well….. too much a man. Gone.
—————————————

The problem was he was too much useless.

______

Seems like that would make him a perfect fit for the Libs, no?

Maybe he was tempted to do something honest, and right, but Trudeau caught wind of it…

#168 jess on 10.26.21 at 12:37 pm

Dolce:
doi: https://doi.org/10.1101/2021.09.23.21263864
This article is a preprint and has not been peer-reviewed [what does this mean?]. It reports new medical research that has yet to be evaluated and so should not be used to guide clinical practice.

=========
as it should be!
COVID-19 vaccine-myocarditis paper to be permanently removed: Elsevier
https://retractionwatch.com/2021/10/25/covid-19-vaccine-myocarditis-paper-to-be-permanently-removed-elsevier/

=======

https://www.science.org/doi/10.1126/science.abm0829
https://www.cbc.ca/news/health/waning-immunity-covid-19-vaccines-breakthrough-infections-canada-1.6221608

#169 KLNR on 10.26.21 at 12:37 pm

@#149 Shawn Allen on 10.26.21 at 10:36 am
Rogers and Tax Evasion, I mean Tax voidance

So why does Rogers Communications have multiple voting shares? That’s to maintain family control. Okay let’s call that fair enough even though some would criticize that.

But why do they have this “Voting Trust” that Edward Rogers is using? Why aren’t the various family members holding and voting their multiple vote shares individually?

I think you find that the Trust was set up to avoid or defer (for a long time) income tax on the death of the founder Ted Rogers.

I mean, remember the stories in the news about how the family had to sell millions of dollars in shares upon his death to pay the huge capital gains tax his estate faced? Me neither, ’cause it never happened. That’s because in this country “taxes are for the middle people”. Not the poor and not the rich. (And yes, the mega rich get taxed on their taxable income, but it’s what they don’t have to report that is the bigger concern.)

And the middle people hate taxes so much that most of them actually defend the huge tax breaks for the rich. Not me.

The company Ted Rogers founded pays $490 million a year, on average, in corporate income tax. It created jobs for 26,000 people, who pay income tax. The officers and directors pay tax. Hundreds of Rogers suppliers and contractors pay tax. All this helps pay for that defined benefit pension you keep mentioning. But, not enough for you? – Garth

so some tax evasion is ok?

Evasion is illegal. Rogers evaded nothing. – Garth

#170 Wrk.dover on 10.26.21 at 12:37 pm

From the pharmacy in a revolving rack of DIY books, I bought the Sunset Book of Plumbing.

Then I plumbed my new build. My friend borrowed my book and did his new build too.

It was in 1981. Twenty somethings were different then.

#171 GARTH QUESTION on 10.26.21 at 12:42 pm

Hey Garth,

I have a checking account and Visa with CIBC. Both are the premium ones they offer. By holding the premium checking account, I get the VISA fees waved. In order to wave the fees on the checking account, I have to keep a minimum balance of $6k. Is this worth it to do or should I invest the $6k and just get a no-fee basic checking account?

#172 Immigrant man on 10.26.21 at 12:49 pm

#159 NEVER GIVE UP on 10.26.21 at 11:43 am
Like in the Soviet Union era and now China whereby words can get you into a lot of trouble.
————–
It’s was not quite the same in USSR. I mean you would definitely loose your job if you expressed your beliefs that did not line up with the official party doctrine. However, that was the low end of the scale. You could also have your property confiscated, you could be tried and sentenced to forced labour in GULAG (as a bonus your children were handed to a special orphanage for “children of the enemies of the people”). That went for your extended family as well, they could be denied positions because they have a “political prisoner relative”. You could be executed. After Stalin’s death it became a bit softer, they would pack you into an insane asylum and apply the punitive soviet medical treatment. Because you are “insane” you could be there “till you get better”.

Not quite the same as worst case scenario – loosing your job. But I agree, worrisome.

P.S. – Joke time.
It’s 1945. Churchill and Stalin are meeting at the Yalta Conference. After the talks Churchill tells Stalin “I love collecting political jokes”. Stalin goes: “Yes me too, I have three labour camps worth of humour”.

#173 Stoph on 10.26.21 at 1:12 pm

#170 Wrk.dover on 10.26.21 at 12:37 pm
From the pharmacy in a revolving rack of DIY books, I bought the Sunset Book of Plumbing.

Then I plumbed my new build. My friend borrowed my book and did his new build too.

It was in 1981. Twenty somethings were different then.

————————————————————–
You mean they used books instead of YouTube for their DIY job?

#174 Dragonfly 58 on 10.26.21 at 1:30 pm

James, you have no idea of what some jobs involve. Care aids deal with ” Code Brown’s ” all day long. And at a fraction of what a plumber earns. Sewage plant Operating Engineers, City workers and Contractors. Most are way under $63.00 /hr.

#175 Dragonfly 58 on 10.26.21 at 1:35 pm

Sorry , Brain fart. I meant $56.00 / hr. How about Septic Tank guys , pumping and repairing. Once again the person actually doing the job will usually be making a lot less than a Plumber.

#176 R on 10.26.21 at 4:06 pm

#142 crowdedelevatorfartz on 10.26.21 at 9:30 am
I believe Tesla is an underestimated game changer.
Let us revisit the “dreadnaught” question in 4 years ? Oct 25, 2025
If Tesla is out prouducing any other OEM by vehicle count by then, would it count as being a “dreadnaught” ?

#177 David Greene on 10.28.21 at 1:22 am

Dragonfly:

Your post suggests to me that you’re equating university with job training. For many of us who did to to post-secondary, it helped us grow our minds in ways we could never have imagined.

Now, let the flames begin about what an elitist snob I am for saying that.

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

#68 Dragonfly 58 on 10.25.21 at 5:16 pm

And I belive you misunderstand Dr V . My point was not that the Plumbing wage is too high.
It is probably more along the lines of ” why spend years in Post Sec. education and climb the ladder in demanding careers ” if a simple apprenticeship gets you to the same point ? I am not running down Plumbers, but compared to my spouces and my skills , education and job duty’s there is a tremendous difference. I was a tradesman, then I retrained in a Tech position that is very similar to a Millwright, plus Supervisor , plus a bunch of other Transport Canada qualifications , Firefighting , where I had the job of fire attack team leader, plus a whole bunch of other transportation emergancy skills, duty’s, qualifications to maintain. Regular re – qualifing to Transport Canada and International Marine transport industry standards
And all for $10.00 an hour less than a Plumber ? The world has turned upside down.