Panic buying

Recall when we said panic buying was coming?

Well, here we are. All it took was the end of 1.99% mortgages to make the kiddos truly understand the cost of money can go up, not just down. Now that five-year rates have zipped higher, throngs of the pre-approved are descending like Saskatchewan locusts to polish off the urban housing fields.

In the GTA, for example, condo sales just popped 42% year/year. Sales overall last month trumped those of October, which is odd. In fact it was the best November ever. And while the moisters chomped their way through the inventory, scant new listings sprouted. The result: only 6,000 properties listed in a market of six million souls – a staggering 56% drop from this time in 2020.

Ditto in Van, where 7,000 homes are on MLS, a 35% dump. Sales in that city are also up (11%) and the realtor gods say: “We expect home sale totals to end the year at or near an all-time record in our region. We’ve had elevated home sale activity throughout 2021 despite persistently low levels of homes available for sale.”

The mortgage-buying panic plus the crash in available homes has had a predictable result. The average GTA price is up 22%, to $1.16 million and ahead 16% to $1.21 million in YVR.

But here’s the biggest news for this Friday: the Bank of Canada could start raising all interest rates… next month. Yup four moths ahead of the schedule we got just a few weeks ago. So the newbie buyers are right. Mortgages this cheap will not be back soon, if ever. But it also means they may be rushing out to take on excess debt because prices have peaked.

House values will be falling in 2022 as loan costs jump, says Capital Economics. “House prices still look extremely stretched relatively to implied affordability and that gap will widen as mortgage rates rise further.”

Why is this happening?

Jobs. Plus the end of pandemic pogey. Friday’s employment report was a mind-blower for the econo guys on Bay Street. Totally unexpected. “Wow,” said TD Economics, “The Canadian labour market took an extraordinary leap in November with employment gains seen across most industries and provinces. Even total hours worked, which had been a laggard through much of the recovery is now back at its pre-pandemic level. Truly, a gangbuster report.”

And it was. Over 154,000 more people working. Employment is higher than in February of ’20, during the BeforeTimes. The jobless rate is just 6% (it used to be 14%), and there have never been so many unfilled positions. Ever. Fully 35,000 more people entered the workforce last month, and still the unemployment rate plopped. The driver? No doubt, it was the end of the Canada Recovery Benefit, son of CERB. Now that the Trudeau tap is being shut, it’s time to abandon the sweats, couch and Cheesies.

All this, the bank says, will be hard for the CB to ignore. Despite Omicron, hypersonic cruise missiles, cats on this blog and Adele’s terrifying return, rates are rising.

Throughout the pandemic, the Bank had stressed that it would keep the overnight rate low until the labour market recovery was complete. With last month’s release, it safe to say we’re nearly there. Given tighter labour market conditions, stronger price pressures, and hot housing market activity, we can’t discount the possibility the Bank may choose to hike as early as January.

And RBC is reinforcing this. “It is increasingly clear that there are not enough remaining unemployed workers out there to re-fill all of those jobs any time soon,” it says. “Lack of labour supply means increased hiring demand is expected to show up more in above-trend wage than employment gains going forward.”

So, the jobless rate goes down, the number of unfilled jobs goes up, wages have to increase as a result, and that helps fuel inflation – already running hot at a 30-year high. Unless the slimy little pathogen’s new variant spawn devastates things (and it looks like a wuss so far), you can count on the CB pulling the trigger – months before the US Fed does. Already our guys have shut off the QE pipeline, which the American central bankers are only contemplating. This will certainly increase the value of the loonie.

Okay, back to bungalows.

Realtors are currently begging owners to be sellers. Don’t wait for the proverbial spring market, they say, go now. In the winter. The latest poof-piece from Re/Max’s media factory reports 93% of BC agents, for example, say they’re advising clients to get their properties onto MLS pronto. No wonder. Inventories have crashed. Higher rates are in the air. Pre-approved, hungry and desperate locusts are wandering the streets. Everything market-priced is being snapped up. It’s April in December.

But what comes next?

Never forget the inverse relationship between house prices and the cost of money. Given inflation, labour markets, GDP growth, a looming 90% vax rate and the spectre of CB action in just a few weeks, we sit on the cusp of change. The pandemic’s impact will be over. The days of sub-2% loans a memory. And rest assured as the Bank of Canada slides the first round into the chamber that the media will have a cow.

Panic buying could be followed by panic listing.

About the picture: “I submit this without words,” writes Leslie, testing me, “as they are cats. (Semi feral barn kittens photographed this weekend.)

Have a beast to share with us? Send me a pic at ‘[email protected]’.  – Garth

97 comments ↓

#1 Prince Polo on 12.03.21 at 3:22 pm

What about panic buying of equity indices!?

Why would there be? – Garth

#2 Soviet Capitalist on 12.03.21 at 3:28 pm

I can’t believe Garth posted cat pictures on this blog.

Inclusion and diversity. They made me. – Garth

#3 Paolo Salvador on 12.03.21 at 3:28 pm

“…they are cats”

Whaaat? Unacceptable!!!

#4 Dolce Vita on 12.03.21 at 3:28 pm

Panic Buying.

I bought more high div ETFs today. Sh!itty US Jobs report thus Dow:

-323.46 pts (2123 hr CET)

Canada great jobs report thus TMX:

-208.37 pts

My motto today on behalf of my threadbare portfolio:

John Locke and his TABULA RASA can go copulate with a duck.

Meanwhile at the BoC:

We’ll do many, many, many insignificant iota interest rate increases lest we bankrupt Gov Canada and most of its RE disease infested citizens.

#5 Katherine on 12.03.21 at 3:28 pm

Awwww…..thanks for sharing that photo of sweet kitties Garth. Orange tabbies are my favourite!

#6 Sheesh on 12.03.21 at 3:30 pm

#145 14 July 1789 on 12.03.21 at 3:09 pm
#143 Kevin on 12.03.21 at 2:04 pm

Remember in the end the poor masses will always eat the rich

When did that last happen? – Garth

There’s no bread let them eat cake
There’s no end to what they’ll take
Flaunt the fruits of noble birth
Wash the salt into the earth

…….

1917. Russia wasn’t a great place to be for the rich…..

#7 millmech on 12.03.21 at 3:33 pm

Not to worry, a $800k mortgage at 1.5% is about $3k/mth and at 7.5% is about $6k/mth, if rates rise this fast the wages will also, if not there will be a copious amount of copulation of credit consumers.

#8 Felix on 12.03.21 at 3:34 pm

FINALLY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Happy Feline Friday Everyone!

#9 TurnerNation on 12.03.21 at 3:36 pm

In BC we have identified a new Blog Dog Variant of Concern. The CEF variant.

— We pay high taxes for all the stuff we get! Look just in time to cancel Christmas & gift giving.
Do you remember the stunt they pulled last year? Making toys and such “non essential” and banned for in-person shopping?

.Alberta: Some rural post offices close following Canada Post vaccine mandate (cbc.ca)

— Life in one of the Former First World Countries. Ongoing health care rationing in UK.

“Ministers signalled that the plan could mean fewer GP appointments for other reasons, with family doctors told that there was “nothing more important” than the national rollout” https://www.telegraph.co.uk/news/2021/12/01/two-rounds-boosters-come-government-orders-variant-proof-covid/

–Christmas, holiday travel cancelled again. What a surprise. Control over travel globally? Yep. Headlines…are deigned to get inside your Head.

.White House says domestic travel vaccine requirements on the table due to omicron variant (foxnews.com)

.Biden to Announce Strictest Covid Measures to Date, Including a Crackdown on Americans Returning from Abroad (mediaite.com)

.Covid: Omicron fears cause wave of hotel cancellations (bbc.com)

.Biden administration expected to extend public transit mask mandate through mid-March (nbcnews.com)

“Missouri health department found mask mandates work, but didn’t make findings public
Jurisdictions with mask mandates averaged 15.8 cases per day for every 100,000 residents, compared to 21.7 in unmasked communities”
https://missouriindependent.com/2021/12/01/missouri-health-department-found-mask-mandates-work-but-didnt-make-findings-public/

#10 Billy Buoy on 12.03.21 at 3:39 pm

Rate hikes?

They haven’t even started yet and I see this already…

https://www.zerohedge.com/markets/here-we-go-market-begins-pricing-rate-cuts-yield-curve-inverts

#11 Andy on 12.03.21 at 3:43 pm

“Now that the Trudeau tap is being shut, it’s time to abandon the sweats, couch and Cheesies.”

Lol Garth, as I write this I am literally just back from the couch, in my sweats, eating some Cheetos, at work, on a break. :)

#12 Sail Away on 12.03.21 at 3:43 pm

Ah, very good:

Declare the range hot, fire that round and let the chips fall where they may.

#13 Kirk on 12.03.21 at 3:50 pm

I am now wondering if I should have locked in a 10 year fixed (2.54%) back in April instead of a 5 year fixed (1.69%) maturing in 2026.

What say you, Gartho?

What did I advise then? Oh, look – a 10 year. – Garth

#14 Dolce Vita on 12.03.21 at 3:51 pm

Europa Virus Porn

Sweden has a bird about EVERYTHING.

2 vax + booster Israeli Doc goes to London, come back with Omicron. Neighbor Norway really high cases, lots of Omicron. S. Africa is full of “don’t panic” sh!t, their last 3 weeks of cases:

901 –> 3,405 –> 11,535

https://www.aftonbladet.se/nyheter/a/jaga90/norges-tegnell-jatteorovackande-situation

Swedes correct about S. Africa ’cause like the US and Canada they go out of their way to find Omicron cases:

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

Well Sweden, get in line. You’re Italia and your looking at this Europa fresh ECDC contagion map (FYI Brexit and Switzerland same color as Ireland):

https://i.imgur.com/7Gm4Rpe.png

+

it’s f’ing cold in Europa (A = High, B = Low, Freddo = Colder than a witches papula):

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

=

Cold, Covid weary Europa assaults Italia and bits of Spain. AND last 2 weeks of Dec forecast:

https://i.imgur.com/4zK3viI.png

Italia case count doesn’t stand a chance as all the Typhoid Mary’s of Europa come to her for some relief.

———————–

And you know Europa’s having a BAD DAY when Deutschland’s Public Broadcaster DW is asking this:

“What lessons can Italy teach us about dealing with the coronavirus pandemic?”

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

Italia: 475/9000 ICU beds being used. Now I know why France, Germany and Switzerland shipping their Covid ICU patients to Italia.

And Germany, Italia Europe death count 3rd highest, Recall: Russia still in Europe last time I checked.

#15 twofatcats on 12.03.21 at 3:52 pm

Dec 3 Today’s flipped ‘principal residences’

https://www.zolo.ca/oakville-real-estate/313-beechfield-road#sold-history

https://housesigma.com/web/en/house/Xawjy41e4Xq7rR18/10-Seaforth-Ave-Toronto-M6K1N5-W5174052

https://www.zolo.ca/welland-real-estate/32-denistoun-street#sold-history

#16 cmccullo on 12.03.21 at 4:00 pm

CATS on the blog! (C’mon, kind of cute.) Well, a good illustration of how things are getting stranger by the minute. Thanks for the good intel, Garth. I can almost hear the creaking as this low-interest-rate-fuelled bloated monolith starts to slip over the edge. Hang on.

#17 Bonanza! on 12.03.21 at 4:00 pm

Only dummies buy in a panic. Wait for the foreclosed and insolvent to be taken out by rate increases and buy for Pennie’s on the dollar

#18 mitzerboyakaQueencitykidd on 12.03.21 at 4:03 pm

Dogs are great
Beer is good
Cats are crazy
It’s Friday I’m in love

#19 Nonplused on 12.03.21 at 4:05 pm

A cat picture headlining Greater Fool? Surely the end times are upon us. As if the Adele comeback wasn’t enough of a sign.

Oh and remember folks, the FBI has warned that trolls use cute cat pics to spread disinformation online. How exactly I am not sure, something about increasing traffic to the Epoch Times. Nothing is safe online.

#20 Dolce Vita on 12.03.21 at 4:07 pm

#1 Prince Polo

Ask Credit Suisse how their popular VelocityShares Daily 2x VIX Short Term ETN (TVIX) worked out for them.

#21 B on 12.03.21 at 4:11 pm

What are some affordable places in Canada that are poised for economic growth over the next 10-20 years.

#22 AM in MN on 12.03.21 at 4:12 pm

#1 Prince Polo on 12.03.21 at 3:22 pm
What about panic buying of equity indices!?

Why would there be? – Garth

————————————————–

Exactly. The IPO market takes care of that, along with the creation of new shares by existing firms. They can do this much faster than a developer can build a real house.

Be more worried about panic selling, including from the companies themselves that have loaded up on debt to buy back shares and pay bonuses and dividends.

#23 TurnerNation on 12.03.21 at 4:22 pm

— Former 1st World country – Rationing health care…2 years into it.
As I’ve been saying every system designed to help us has been turned against us

.UK: Routine health checks for over-75s suspended until April so GPs can deliver boosters (dailymail.co.uk)


— Science in Kanda. Control over feeding? Check. This is so normal!

.New Brunswick grocery stores to have the option of requiring proof of vaccination from all patrons (cbc.ca)

— War on Small Business. All fun is still banned in the New System.
Permanent rolling lockdowns in the Former First world Countries.

.Ireland shuts down nightclubs for (at least) a month, places drastic limits on bars and restaurants. (news.sky.com)

#24 Repurchase Disagreement on 12.03.21 at 4:22 pm

#6 Sheesh

There’s no bread let them eat cake
There’s no end to what they’ll take
Flaunt the fruits of noble birth
Wash the salt into the earth

…….

I knew someone who thought he was singing:

There’s no bread or lemony cake…

And Neil is actually referring to 1789

#25 Kirk on 12.03.21 at 4:26 pm

#13 Kirk on 12.03.21 at 3:50 pm
I am now wondering if I should have locked in a 10 year fixed (2.54%) back in April instead of a 5 year fixed (1.69%) maturing in 2026.

What say you, Gartho?

What did I advise then? Oh, look – a 10 year. – Garth

^^^^^^^

I’ll say to you what I say to my wife when I didn’t listen; I’m sorry, dear.

#26 PC on 12.03.21 at 4:27 pm

Is Adele’s return terrifying because she’s such an unstoppable talent?

#27 Chameleon on 12.03.21 at 4:29 pm

See what a palette cleanser this revolutionary photo choice is?

Garth…one picture diversity is not! We need this institutional preference for dogs to end. More animals to be invited and included at the poker table.

How about a week of winter creatures?

#28 Dave on 12.03.21 at 4:30 pm

We’ve been hearing that interest rates are going to go up for years. Of course they will go up slightly, but not an amount significant enough to force enough people to foreclose on their properties in the desirable areas. Trudeau has let housing increase to the point of absurdity.

#29 ritenote on 12.03.21 at 4:34 pm

Go Cats!
Go Adele!
Go B of C!
Rise & shine upon us all!

#30 NOSTRADAMUS on 12.03.21 at 4:37 pm

REALTORS, BEGGING SELLERS TO LIST NOW.
No inventory, means no sales, which means I can’t pay my monthly desk fee at the office. I need the bread now man, list and save my ass. I’ve got back taxes and lease payments you wouldn’t believe. As to the question, where will you be relocating to? That’s not a problem, gas the airplane up, there are tons of listings just over the horizon. You got to trust me on this one. You think “jason” in Halloween was a psychopath, he was a baby compared to some of the smiling, psyscho’s I’ve met in the real estate offices. Disclaimer, not all realtors are bad, just the mentally disturbed one’s. Amen Brother

#31 Dogman01 on 12.03.21 at 4:42 pm

#118 Do we have all the facts on 12.03.21 at 8:02 am

Several months ago I suggested on this blog that Quantitative Easing was initiated by the Government of Canada to cover projected deficits related to the Covid 19 crisis. I was strongly rebuked and told in very strong terms that the Bank of Canada always acts autonomously from the Government of Canada.

————————————————

“Truth, when discovered, comes upon most of us like an intruder, and meets the intruder’s welcome.” – Charles Mackay

Conservative people will be slow and resistant to recognize that important things could be so casually destroyed; the Betrayal, subversion and degradation of societal structures and traditions are so unwise and destructive that it is hard for conservative people too imagine or accept that people in authority would ever do that.

Moral Matrix – Jonathan Haidt
Care/harm,
Fairness/cheating,
Loyalty/betrayal,
Authority/subversion,
Sanctity/degradation,
Liberty/oppression.
https://blogs.scientificamerican.com/guest-blog/jonathan-haidt-the-moral-matrix-breaking-out-of-our-righteous-minds/

Let’s face it, Low Interest and High Inflation supported by weasel words is now the coordinated response of Central Banks and Governments throughout the West. Clearly the West is in an ongoing financial crisis and they do not want the population to know. When no one will buy your debt and you have no cash you are bankrupt.

“The game of history is usually played by the best and the worst over the heads of the majority in the middle.” – Eric Hoffer

“When it becomes serious, you have to lie,”- Jean-Claude Juncker

#32 Dogman01 on 12.03.21 at 4:44 pm

#1 marcovenier on 12.02.21 at 2:27 pm
A good read:
https://www.collaborativefund.com/blog/how-this-all-happened/
——————————

This is a chapter in his Book: The Psychology of Money
https://www.goodreads.com/book/show/41881472-the-psychology-of-money

One of the best reads on the subject of money.

#33 Faron on 12.03.21 at 4:47 pm

Did people buy the dip that kept dipping (I did and got cooked on Dec 1)? Is – 5% to -7% what counts as a correction these days? Perhaps the reaming of Cathie Wood’s portfolio of profitless garbage is the sentiment shift that was needed (-24% this year, flat since late August, 2020)? Do TSLA and Crypto need to follow the dodo or maybe just something more like the CA Condor?

One thing’s for sure, Omicron has probably been here for a solid month and it’s probably not much worse than delta. The economy sputters along. Seasonality picks up right about… now. Sentiment indicators have fallen back to deep fear. DIX continues to print high.

HAGW! Enjoy the snow LMLers.

#34 yorkville renter on 12.03.21 at 4:49 pm

All the places selling in the hoods I follow (trying to buy over here!) are going for hundreds of thousands more than expected – yes, panic selling.

One specific place – been trying to sell it for over a year – was just put back on and sold for $300K MORE than list… but for a year – crickets.

Crazy.

#35 Faron on 12.03.21 at 5:03 pm

#16 cmccullo on 12.03.21 at 4:00 pm

CATS on the blog!

Makes me think of this scene from Ghostbusters:

https://www.youtube.com/watch?v=-sED4fzIV0k

#36 Editrix on 12.03.21 at 5:04 pm

Over 1000 cases in Ontario today. My office has said it will close down again once they hit 1200.

#37 OK, Doomer? on 12.03.21 at 5:05 pm

After the war (WWII, the Big One) my uncle bought a quarter of farmland and the interest rate was ….. 12.5%.

Yep. 12.5%. A solid 8X higher than rates today. What would a house be worth at those rates?

I saw the comment by one poster who claimed that employers would have to boost salaries to compensate for higher rates. Pure socialist hogwash thinking.

Or maybe it’s just me. I never had the guts to go to my boss and demand a fat raise because I overpaid for my new car. Maybe other people do. But seeing how I am the boss, my reaction would be “Sell your house and buy a cheaper one or get a new job”.

#38 Sheesh on 12.03.21 at 5:10 pm

#24 Repurchase Disagreement on 12.03.21 at 4:22 pm
#6 Sheesh

There’s no bread let them eat cake
There’s no end to what they’ll take
Flaunt the fruits of noble birth
Wash the salt into the earth

…….

I knew someone who thought he was singing:

There’s no bread or lemony cake…

And Neil is actually referring to 1789

…ya ya, I got that. Just pointing to a more recent occurrence.

#39 Sara on 12.03.21 at 5:12 pm

#2 Soviet Capitalist on 12.03.21 at 3:28 pm
I can’t believe Garth posted cat pictures on this blog.

———————————————————–
Perhaps he felt guilty for deleting one of Felix’s recent comments and was trying to make amends.

#40 Sheesh on 12.03.21 at 5:14 pm

Ps…this is what gave it away ;)
#145 14 July 1789 on 12.03.21 at 3:09 pm

#41 dave on 12.03.21 at 5:21 pm

Rise in interest rate has been brewing for over a decade.

For the sake of argument – interest rates start to increase. Currently a crack shack in Metro Vancouver is $2M. 10% correction equals $1.8M

Is this the best we can expect???

#42 crowdedelevatorfartz on 12.03.21 at 5:30 pm

Higher rates need to eviscerate this Real Estate market

#43 catmandeux on 12.03.21 at 5:34 pm

#26 PC on 12.03.21 at 4:27 pm
Is Adele’s return terrifying because she’s such an unstoppable talent?
——————–
Background singers in Adele’s hit “Rolling in the Deep”

“You’re gonna wish you never had met me”

I agree.

#44 I don’t know on 12.03.21 at 5:38 pm

#17 Bonanza! on 12.03.21 at 4:00 pm

That is doubtful. Interest rates will likely never reach the levels of the 80’s/early 90’s (the last time housing took a hit in the gta). Interest rates will struggle to even hit 4-5%.

Huge demand from entire generations of young people currently priced out has to be factored in.

The 80’s aren’t coming back.

#45 Slanty Semi on 12.03.21 at 5:40 pm

Sweet little kitties!!

Thanks for some long overdue cat content!!

#46 DON on 12.03.21 at 5:50 pm

#10 Billy Buoy on 12.03.21 at 3:39 pm
Rate hikes?

They haven’t even started yet and I see this already…

https://www.zerohedge.com/markets/here-we-go-market-begins-pricing-rate-cuts-yield-curve-inverts

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

Garth is talking about Canada and the zero hedge article is about the US having to cut rates again in a few years under a much different context like the next US recession.

#47 Linda on 12.03.21 at 6:00 pm

Orange kitties rock:)

Have to say that the RE crowd are sure looking to add listings. Basically have had flyers saying ‘will buy your home for CASH’ landing in the mail box or on our doorstep all year. Haven’t yet had a realtor knocking on the door to see if we are looking to sell, but wouldn’t be surprised if that occurs.

I take at least some of the jobs numbers to be the usual holiday season boost to employment; it will be interesting to see what the numbers for post holidays look like. If they are still up then could be that yes, the economic rebound has arrived. As for inflation, that too looks to be hanging around for some time to come. Supply chain issues continue. Local bakery told my partner that they are out of the rye flour they need to make our favorite bread with. Not sure when or even if they will be able to get restocked. Those pesky drought conditions have had an adverse effect on grain production. Fair or not, when there are shortages the price of the goods on offer tends to increase faster. Just like housing!

#48 Brunett43 on 12.03.21 at 6:08 pm

My b/f has to sell his deceased mother’s house here in London, right next to the University. For only $1.9 million you get 5 beds, 7 baths, a pool, sauna, 3-car garage. Now mind you, the interior is circa 1970, so you may want to gut it, that is after you remove all the pinky wall paper off of the plastered walls. It’s about 5000 sq ft. He’s gonna laugh all the way to the bank.

#49 Capt. Serious on 12.03.21 at 6:11 pm

Wouldn’t the surprise of a lifetime be if everyone has it wrong and the inflation we see does melt away next year and something unexpected happens and rates crash negative? Irony would be if long treasuries are the best performing asset class next year.
The point is guessing interest rates is not known as an accurate game. The best we can say is “probably”, “the odds are” or “money markets are betting”. It’s not a fait accompli rates are rising despite what ‘everyone’ is saying. I’m in the camp that says they are going to be rising but I’m prepared to be amazed.

#50 Capt. Serious on 12.03.21 at 6:13 pm

#32 Dogman01 on 12.03.21 at 4:44 pm

Morgan is a smart dude. If you follow him on Twitter he puts out on Sunday a financial history post each week. Always interesting.

#51 IHCTD9 on 12.03.21 at 6:22 pm

And rest assured as the Bank of Canada slides the first round into the chamber that the media will have a cow.
———

That has a certain poetic essence to it.

Squeeze the trigger baby!

#52 Steven Rowlandson on 12.03.21 at 6:39 pm

Believing lies, fear and panic are poor substitutes for clear thinking and good planning..

#53 Shirl Clarts on 12.03.21 at 6:52 pm

What happened to Preferreds today? Specifically, ZPR dropped 2%. I thought they go uppa uppa with rising rates?

#54 Dr V on 12.03.21 at 7:04 pm

From the Canadianencyclopedia and the relationship between the BoC and the govt.

The “Coyne Affair”

Eventually, a conflict developed between the manner in which the BoC wanted to control inflation and economic growth and the manner preferred by the federal government. This occurred in the mid 1950s, when the BoC wanted to tighten credit in order to reduce inflation. At the same time, the Liberal government of Prime Minister Louis St-Laurent wanted to increase money supply and loans to increase demand and reduce unemployment. This period coincided with a change in management at the Bank of Canada, when James Coyne succeeded Graham Towers as governor in 1955, and the election the Progressive Conservative government of John Diefenbaker in 1957.

The developing “Coyne Affair” centred around a lack of clarity on the relationship between the federal government and the Bank of Canada, and which party ultimately decided on monetary policy.

Coyne was often publicly critical of federal government policy and took a strict policy of fighting inflation by raising interest rates, which alienated some politicians, academics and the public. In 1960, public and corporate outrage followed, culminating in a letter from 29 academic economists to the Finance Minister expressing their lack of confidence in the management of the Bank of Canada. In 1961, the Diefenbaker government asked Coyne to resign, which he refused, and then moved to fire him by passing a bill declaring his position vacant. However, Coyne submitted his resignation shortly after the Senate rejected the bill.

The relationship between the federal government and the BoC was resolved through negotiation when Louis Rasminsky became governor of the BoC in 1961. Going forward, the BoC would be given independence from the federal government in determining monetary policy. In 1967, changes to the Bank of Canada Act affirmed the BoC’s control of day-to-day monetary policy but state that overall policy objectives are set by government.

#55 Montana Bob on 12.03.21 at 7:10 pm

Well, everybody these days is talking about raising of interest rates. But, for how much will they go up ?
I really doubt interest rates will go up rapidly. In April, it might be 0.5%, which is next to nothing. By the end of 2022, it could be total of 1%, or even less.
Bigger problem is that in the meantime, inflation will impoverish people. Because inflation is hidden tax. Basically, everyone will be paying for those people who are overleveraged.
Disposable income will be greatly reduced with inflation.
Now, how much should be interest rate if inflation is 5% (even though it is close to 10%) ? Sometimes Fed’s rate was double off inflation rate. Thus, rates will not go to 10% in foreseeable future. More likely scenario is that budget will be filled up with inflated prices for everything.

#56 Dave on 12.03.21 at 7:13 pm

20 foot travel trailers going for a 100k… we’ve lost our way.

#57 Lawless on 12.03.21 at 7:35 pm

Garth,
Hope you’re correct on the pandemic being toast, but unfortunately I do think you’re wrong on this front. Reports of growth of the virus out of S Africa are significantly worse than delta, which suggests either the virus is escaping the vaccines or it is more infectious. Also some reports out of the UK suggesting that a high proportion of vaxed people are getting this one. Also reports of two triple vaxed professionals that met masked passing it along. Early days yet, but I suspect that we are in for at least one last blast of this garbage. I do hope that you’re right though. It’s just that most of what I’m reading suggests otherwise.

#58 Cici on 12.03.21 at 7:37 pm

Ahhh, those kitties are so adorable… all the dogs always are too, but kitties on this blog are such a rarity that they deserve special commentary.

Holy CROW, Felix must be having a happy COW!

#59 Lee on 12.03.21 at 7:42 pm

At this pace the inflation rate will be 25% pretty soon. A NY strip is going for $15 in the grocery store.

#60 willworkforpickles on 12.03.21 at 7:45 pm

As i said earlier, inflation with the rising cost of everything and dribbing support will push the layabouts back to work faster than waiting for wage increases will entice them to return.
As i said earlier…last chance for FOMO fueled suckers to get in at these high prices ever(best for sellers)as these price levels won’t likely be re-visited/seen again.
The nonsense that demand will continue to push prices higher beyond rising rates is just that…pure nonsense.
The US just raised its debt limit again today and will again in February and nothing is going to (ever) be imposed to reign in spending. A sense the US is out of control with spending with no intention of re-paying any debt principal or ever attempting to is rattling foreign holders of it and higher interest rates are soon to be the new order to keep the crucial bond market alive and the spending rampant.
Expect higher rates in lockstep with US rates in Canada. They are coming and will be here to stay on the road that will prove relentless in the steady climb back to historically normalized interest rates.
In time, interest rates on the national runaway debt will grow into a beast large enough to destroy the US dollar and the country itself. Canada will be consumed by this with it.
The solution for now…(non solution)… governments have in store waiting for us all is killer taxes.
It won’t relieve us from the downturn that’s to follow. All the talk they can’t ever do this will fall on deaf ears.

There are no choices left but to raise interest rates. The tool chest is empty. The alternative is to default on the national debt, blow up the world economy and lose the worlds primary reserve currency status and ultimate value of the US dollar sooner rather than later.
That particular loss of dollar status would quickly bring us down to Zimbabwe/Venezuelan economic levels and national starvation….so recession/higher interest rates will go before the deadly outcome/s of a national default.

#61 Goldfinger on 12.03.21 at 7:50 pm

Can’t help thinking about yesterday’s chart.

In US avg house price went down from 750 oz to 250 and has stayed there for 10 years.

#62 Quintilian on 12.03.21 at 7:59 pm

It could be that as listings dwindle, and prices continue to soar, there will be less sales and less demand for mortgage loans ,and thus mortgage rate cuts and other marketing incentives; perhaps you get a free car when you sign up for the special introductory rate of .091%.

Of course, that will only delay the inevitable crash.

There are enough investors now to inject some efficiency in the market. The first sign of real trouble the negative cash flow speculators will make a fast exit.

The dominos will follow the law of physics, and crush the exuberance.

#63 Mattl on 12.03.21 at 8:05 pm

We think and talk about selling our place and banking the tax free gain, but we’d still have to live somewhere, our mortgage is significantly less then comparable mortgage at these rates, kids are in local tightly allocated schools, and I have this sneaking suspicion that when we did try and re-enter the market prices would be higher.

The only folks that can “cash out” are the ones moving to lower cost of living areas, a nursing home, or a dirt nap. Probably why inventory is so low.

#64 Prince Polo on 12.03.21 at 8:26 pm

#1 Prince Polo on 12.03.21 at 3:22 pm
What about panic buying of equity indices!?

Why would there be? – Garth

It was meant to be 95% rhetorical mocking of real estate FOMO and 5% satire of never letting a good sale go to waste. Like most of my self-deprecatingly pathetic comments on here!

#65 Ponzius Pilatus on 12.03.21 at 8:33 pm

#56 Dave on 12.03.21 at 7:13 pm
20 foot travel trailers going for a 100k… we’ve lost our way.
——————-
At least you can live in it.
It’s a house that you can drive around.
An F-150 or a Tesla costs the same.
And aside from getting you to the grocery store, they pretty much are useless.
But I remember, Sailo used to sleep in his Tesla, typical for a stingy Engineer.

#66 Ponzius Pilatus on 12.03.21 at 8:43 pm

Whoops!
Canada added 150k new jobs in November.
USA 210k.
Still wanna move South for a job?

#67 mike from mtl on 12.03.21 at 8:59 pm

Due to the way cat genetics work, I live with one of those rare female orange cats. Cute barn cats nonetheless.

On topic, unless the Fed/BoC get actually serious to tame the free money extravaganza, rates are probably not going too far away. Yes we might get to 1% by ’23 hey 2% on the high end but overshooting will be temporary in this decade.

Unless I am completely wrong and it’s different this time, then you’d better get your email templates ready to your clients on what a “bear market” means.

Yes, I agree. You are completely wrong. – Garth

#68 Outrage on 12.03.21 at 9:19 pm

I guarantee we will see 5 year fixed interest rates at less than 1%. Its coming ,don’t lock in any rate. A Variable rate will be good forever ! People in Canada, USA and Europe have heard year after year, interests rates will be going up. The broken record is finally broken along with the record player. Its done, the CB is one big racket along with all governments.

#69 The Woosh on 12.03.21 at 9:25 pm

#66 Ponzius Pilatus on 12.03.21 at 8:43 pm
Whoops!
Canada added 150k new jobs in November.
USA 210k.
Still wanna move South for a job?

————————————

Better look at how they define “new job”. That 150k number is a load of malarkey. At the same, what kind of jobs make up that 150k and how many hours weekly do they use to qualify as a “job”. Very doubtful to be a living wage. Lies, stats, and BS numbers!

#70 Sail Away on 12.03.21 at 9:28 pm

#65 Ponzius Pilatus on 12.03.21 at 8:33 pm

At least you can live in [a travel trailer].
It’s a house that you can drive around.
An F-150 or a Tesla costs the same.
And aside from getting you to the grocery store, they pretty much are useless.
But I remember, Sailo used to sleep in his Tesla, typical for a stingy Engineer.

———

Sleeping in the Tesla is queen bed, climate-controlled perfection. This is my standard on multi-day trips. Wake up in the morning, drive to the nearest town for a gym workout and shower, hit a restaurant for some fine eggs Benedict with a pot of coffee and back on the road by 7-ish. So efficient.

Now I’m pining for a long trip. Hopefully Berkshire’s next AGM is live. Speaking of… all Omaha accommodation is $500/night during the AGM. Sleeping beautifully in the Tesla is, oh… free. Warren approves.

#71 crowdedelevatorfartz on 12.03.21 at 9:32 pm

@#62 A quintillion mangled metaphors …

“The dominos will follow the law of physics, and crush the exuberance.”

++++
It begs the economic question…

If you can tune a piano….can you tuna fish?

#72 crowdedelevatorfartz on 12.03.21 at 9:40 pm

@#61 Goldfingers’ origin.

“Can’t help thinking about …….”

++++

https://www.thespruceeats.com/what-is-edible-gold-leaf-520343

You go to a Lillooet restaurant and when you have much too much gold leaf chocolate cake and then realize the bathroom is out of order……

#73 Morrey on 12.03.21 at 9:47 pm

#26 PC
Adele: All 100 her of songs sound alike!

Waiting for interest Rates to rise is much like Waiting for Godot

#74 NoName on 12.03.21 at 10:22 pm

#70 Sail Away on 12.03.21 at 9:28 pm
#65 Ponzius Pilatus on 12.03.21 at 8:33 pm

At least you can live in [a travel trailer].
It’s a house that you can drive around.
An F-150 or a Tesla costs the same.
And aside from getting you to the grocery store, they pretty much are useless.
But I remember, Sailo used to sleep in his Tesla, typical for a stingy Engineer.

———

Sleeping in the Tesla is queen bed, climate-controlled perfection. This is my standard on multi-day trips. Wake up in the morning, drive to the nearest town for a gym workout and shower, hit a restaurant for some fine eggs Benedict with a pot of coffee and back on the road by 7-ish. So efficient.

Now I’m pining for a long trip. Hopefully Berkshire’s next AGM is live. Speaking of… all Omaha accommodation is $500/night during the AGM. Sleeping beautifully in the Tesla is, oh… free. Warren approves.

I see what you did there !!!

https://imgur.com/a/kd5un81

#75 Gulwinder Gill on 12.03.21 at 10:36 pm

Real estate is a distraction in a country that is considered dead by investors ( actual investors) foreign and domestic.

https://nationalpost.com/opinion/john-ivison-we-are-bleeding-capital-and-that-spells-big-trouble-report-warns

While you scurry and frenzy the big picture is of a country which has only 100% taxation as a lifeboat. Tiff has already made a mockery of your dollar by letting Trudeau more money than we can ever pay back. The hyperinflation in real estate is slapping you silly. While hyperinflation in consumer prices is hurting your paycheque .

Canada is a rotting corpse and you are being forced to partake because the cupboards are bare. The only one who doesn’t recognize this is you. That’s why foreign capital won’t touch this pariah country with a barge pole.

So, run around and chirp about how your nothing dollar bought a house with nothing. The game is to distract you until the last leeching policy turns gangrenous. After that, if you wonder what happened to the hospitals and schools that weren’t built, look yourself in the mirror and ask “How could I have been so stupid”?

#76 Tomás de Torquemada on 12.03.21 at 10:51 pm

The ‘fantastic’ jobs report is based on underpaid low quality service jobs.

There is enforced by employers cap on salaries in Canada that restricts salary growth, not like in US where the sky is the limit specially for high tech jobs.

Current house prices are based on socialized risk, policy of maximizing bank profits based on debt, that explains the exponential debt increase as of lately.

Meaningful rate increase and normalization is not possible with the current level of debt and financial structure built to suit the banks, the government, the house owners.

Too many ‘winners’ from little economic activities, add to that the construction and real estate industry and we run out of losers to subsidize the whole wonderful Ponzi scheme that churns profits to such large number of profit takers.

So we burnt the savers, retirees, future generations and now are left with the only choice – explosive inflation in order to eliminate or just significantly reduce the debt.

Monetization of debt as of lately is the last phase of the preparation for that.

The problem is the salary cap and the labour suppression in an era of automation and outsourcing.

Yes, there are jobs, but low paid, that require 10-12 years on average, in some cases 15-20 years (for the lower paid jobs) annual income before taxes in order to buy an average home.

Compare that to 3-4 years of annual household income to buy an average house from the past.

Can that ‘revert to normal’ for the interest rates be implemented?
No, considering the debt levels.

We most likely face a decade or two of high inflation – 10-15 % that will be constantly lied about, with rates ‘normalizing’ around 1-2 % temporarily and with every excuse to lower them as soon as an opportunity presents itself.

Combine that with the constraints, based on carbon policies and shrinking recourses and we got the recipe for almost compete elimination of the middle class with the majority that will be marginalized to work for mere survival and existence with simple things from the past like a house becoming impossible to obtain.

The has been a predicament for quite some time, greatly exacerbated by very incompetent authorities who love to sound professional and assuring but in many cases have no clue of what will be the long term results of their actions.

Flipping houses at astronomical prices is not an indication of wealth and this is pretty much what we are left with.

The ‘good news’ is that things can and most likely will get even much worse for the middle class, just look at South Korea and some other Asian countries that actually have much more real, export oriented economies and their level of debt and house prices.

My expectation for house prices and anything tangible is to keep rising. We have been hearing these warnings about pending rate increases and corrections for over 12 years now with real policies designed to further boost prices, which they did. Not that will be real increase, form now on that is impossible, it will be solely based on real time and accelerating destruction of currency.
The problems with inflation is that once recognized it feeds itself.

Fun times ahead.

#77 When Will They Raise Rates? on 12.03.21 at 11:05 pm

Unless the slimy little pathogen’s new variant spawn devastates things (and it looks like a wuss so far), you can count on the CB pulling the trigger – months before the US Fed does. 

Omicron may be a wuss in terms of severity, but early data show that its transmissibilty may render current measures useless in containing spread:

Omicron is so infectious it spread among vaccinated travelers in different rooms in a quarantine hotel — CDC study

“Scientists with the U.S. Centers for Disease Control and Prevention on Friday released a report on the detection of the omicron coronavirus variant in an asymptomatic, fully vaccinated traveler in a quarantine hotel in Hong Kong. The traveler infected a fully vaccinated traveler staying in a room across the corridor, suggesting transmission despite strict quarantine precautions. Neither patient left their rooms during the quarantine period, the study says. “No items were shared between rooms, and other persons did not enter either room. The only time the two quarantined persons opened their respective doors was to collect of food that was placed immediately outside each room door.” The researchers add: “Airborne transmission across the corridor is the most probable mode of transmission.”

Assuming that this spreads unabated and we get to new record daily cases, will they realisticallly keep the economy open when Covid is ripping through the vaxxed population? Not a chance.

Lockdowns are coming, and Justin will fire up the free money machine. BoC will accomodate. Simple as

#78 Ronaldo on 12.04.21 at 12:01 am

#63 Mattl on 12.03.21 at 8:05 pm
We think and talk about selling our place and banking the tax free gain, but we’d still have to live somewhere, our mortgage is significantly less then comparable mortgage at these rates, kids are in local tightly allocated schools, and I have this sneaking suspicion that when we did try and re-enter the market prices would be higher.

The only folks that can “cash out” are the ones moving to lower cost of living areas, a nursing home, or a dirt nap. Probably why inventory is so low
—————————————————————-
You could cash in and move here where prices are at about 2006 level. Basically a down payment on a slanty semi in Vancouver or Toronto. You could do a WFH.

https://www.ojohome.ca/sylvan-lake-ab/49-wildrose-dr-sylvan-lake-ab-t4s-2k8/pid_6n1hzk3dqy/

#79 Calgary on 12.04.21 at 1:00 am

Mortgage rate is going up tomorrow. Fed govt. should crash the real estate market hard. Don’t wait for another “Evergrande”. Realtors and speculators behind the FOMO.

#80 Calgary on 12.04.21 at 1:23 am

The banks just upped the mortgage rates.

#81 Jane24 on 12.04.21 at 1:47 am

SAGE while delicious on chicken is also the name of the British govt Covid control team of scientists and they announced today that Covid will be a major player in our lives for the next 5 years. So plan accordingly. Those office blocks won’t be full again any time soon.

They also announced in today’s press that 55% of the current uk cases of this new variant have hit double vaccinated people. What they don’t know is if these folks were recently double vaccinated or over 6 months ago. Roll on my 4th booster in the spring.

I never thought my retirement would be like this.

#82 willworkforpickles on 12.04.21 at 4:49 am

No – considering the debt levels to higher interest rates many here say.
…………………………………………………………………………..
If the US defaults on its debt, expect the dollar to fall and eventually so to complete worthlessness.
The US congress has just kicked the debt ceiling deadline down the road to February delaying yet again the threat of a future default.
The U.S. government finances its spending by using revenue from taxes collected by the treasury, or from printing money through the Fed.
When these two options don’t supply enough cash to pay the bills, the treasury borrows the difference by issuing bonds and selling them on the world’s financial markets. Bondholders lend the government a set amount of money to be paid back with interest over a certain time frame. The amount owed is the national debt, which currently stands at US$28.43 trillion.
Now its sitting above the debt ceiling of $28.4 trillion set by congress earlier this year. Now its been extended again to February next year.
Half the US debt is owed to internal entities, the rest to foreign holders of US debt.
If congress didn’t suspend or raise the debt ceiling, the government would not be able to borrow additional funds to meet its obligations, including interest payments to bondholders.
That would soon after trigger a default with nation destroying effects in tow – Americans would suffer catastrophic hardship and losses…and that’s just for starters.
A U.S. default would then set off a series of events, including a depreciating dollar and surging inflation, that would soon after lead to the abandonment of the U.S. dollar as a global currency.
If you want that, you want hyperinflation, starvation and even death.

The debt ceiling has been raised so often the debt to GDP ratio has reached in the eyes of foreign holders of national debt unsustainable levels for the first time in history.
This is the difference that makes all the difference today over the days of freewheeling spending now (just) past.
Endless debt ceiling extensions are now giving the signal to foreign US debt holders that congress has no serious intentions (none) of reigning in debt with austerity measures under these circumstances.
This in turn is and will continue to put real pressure on rates to rise to buoy the bond market as debt holders see no other means but to force rates up to make up for the lack of principle being serviced on the debt to them.
Holders of RE in Canada and the US will never live to see government favour them over the very survival of the nation itself….and as the US goes, so will Canada.

Sorry to burst your bubble…at any rate
…now back to your regular programming with the lot of you.

#83 willworkforpickles on 12.04.21 at 5:15 am

…and just to say as I’ve been saying – historically normalized interest rates won’t come overnight, but will materialize over the next couple of years.

#84 Do we have all the facts on 12.04.21 at 7:41 am

When you examine the latest labour statistics from November 2019 and November 2021 a interesting trend emerged.

Public sector employees increased by 264,000 or 6.8%
Private sector employees increased by 235,O00 or 1.9%

Our current economy is an 80/20 split between employment in the service delivery sectors and employment in the goods producing sectors.

If employment trends continue it is difficult to see how GDP growth will generate the income necessary to cover rising debt servicing obligations.

We need increased production in the private sector to offset future increases in debt service obligations of the Government of Canada.

It is just that simple

#85 Rach on 12.04.21 at 7:54 am

For those naysayers claiming they won’t raise rates – the time as come: 28% of Canadians who are now pensioner age. 10% of Canadians are on social assistance such as welfare and disability. These are fixed income populations in Canada. Unless they double the payouts for these people I don’t see how they can let inflation run hot for much longer.

#86 crowdedelevatorfartz on 12.04.21 at 8:08 am

@#75 Gulwinder Gill

https://nationalpost.com/opinion/john-ivison-we-are-bleeding-capital-and-that-spells-big-trouble-report-warns

*****

Very interesting article .
Sadly, not much of a surprise.
The Trudeau govt has hidden the fact that large international companies are avoiding investing in Canada’s politically and environmentally correct cesspool of legislative hurdles.

The liberal burning through hundreds of billions of tax dollars to prop up a failing Liberal agenda …. with no sitting Parliamentary discussion, a media that sits on its hands with its mouth shut, and an election no one wanted.
Smoke and Mirrors and the hayseed rubes at the Circus fell for it.

And now even the investment board of the Canadian Pension Plan …have seen the light.

“It is indicative that not even Canadian pension funds see Canada as a good investment opportunity. In the year to September 2021, they bought up foreign equities worth $130 billion – a record outflow of capital that more than offset the purchase of Canadian equities by foreigners. ”

Canada is a mere shadow of itself and when the voters finally wake up and realize the idealism of WOKE policies are unsustainable, incomprehensible fantasies of the Left…… it will be too late.

#87 crowdedelevatorfartz on 12.04.21 at 8:14 am

@#81 Jane24
“I never thought my retirement would be like this.”

+++

Buy a cheap, used bicycle that no one will steal and enjoy the scenery.
Good for the environment, your wallet and your health.
No mask required.
And no one will know how rich you are.
Win win win.

#88 crowdedelevatorfartz on 12.04.21 at 8:24 am

@#82 Pickles.
“he debt ceiling has been raised so often the debt to GDP ratio has reached in the eyes of foreign holders of national debt unsustainable levels for the first time in history.
This is the difference that makes all the difference today over the days of freewheeling spending now (just) past.
Endless debt ceiling extensions are now giving the signal to foreign US debt holders that congress has no serious intentions (none) of reigning in debt with austerity measures under these circumstances.”

+++

Awesome.
So we invest in Chinese Renminbi or Chinese businesses?
As the Evergrande implosion is slow motioning to its inevitable conclusion.
China. A dictatorship with a “legal system” that bends to the every whim of Leader for Life Xi?
Russian oil and gas profits that are scooped up by one of the richest and most ruthless dictators the country has ever seen
The politically correct EU? Swiss bonds?
No thanks.
The US maybe a corrupt , squabbling, cacophony of gun toting nutbars with Jesus Saves bumper stickers…..but they still toss the odd rich millionaire in jail for sex crimes, embezzlement and Racketeering…..

#89 Inadequate on 12.04.21 at 8:24 am

#66 Ponzius Pilatus on 12.03.21 at 8:43 pm
Whoops!
Canada added 150k new jobs in November.
USA 210k.
Still wanna move South for a job?
———————————————————

Actually, they are running out of people. Got a call from Tesla HR asking me if I would be interested to work for them in California. No, because I am already working for one of their rivals in US and stay close to home. If I were younger then yes I would.

I preach to my kids to go down south after getting their degrees. Where the opportunities are more abundant, pay is higher and housing cost is a fraction of Canadian level. I hope they will follow their uncle’s footstep.

#90 Madcat on 12.04.21 at 8:28 am

Cat-pitulation! Certainly this is foreshadowing of things to come!

#91 Fredo on 12.04.21 at 9:52 am

#82 willworkforpickles

Just FYI: this blog is finance focused with an unhealthy secondary dog sickness to which there is no cure or vaccine,

Any type of future fiction about national debt, debt to GDP, debt ceilings or ANY suggestions of paying back of this debt…well, you can go discuss that on a Sci-Fi blog. The guys who are working to figure out teleportation and warp drive likely have better ideas about how national debt EVER gets paid off.

Maybe it involves some dimension shift? Time travel?

Myself personally…I am fond of mafia movies. I have yet to see a degenerate gambler able to pay back debt or tell his loan shark to jack up the vig.

Ain’t ever gonna happen with these degenerates in charge and their debt slaves. Debt is good.

Western economies run on debt and debt alone. More and more will be acceptable. More and more is. If you think about it, it is socialism of sorts. It is quite clever actually…to be rich…on debt. Everyone’s a millionaire!

#92 Dharma Bum on 12.04.21 at 10:51 am

First there was COVID-19 “Original”, then there were the first “variants”, then they started naming them (cute), Delta, Omicron, and a-who-knows-who. Like branding beer or soft drinks.

I wonder what they will name the next one. Maybe a scarier name to instil more fear into the ignorant masses. This latest variant is a big “meh”. The media doesn’t like when they try to fear monger and very few react. Neither does the government and the newly empowered health authorities. Be scared, dammit! Be VERY AFRAID!! It justifies our otherwise useless existence, dontchyaknow.

Nobody’s buying it.

As many have correctly noted (on this blog and in circles of even higher intelligence – if you can believe such a thing exists), COVID in all its glory and fancy variant names is here to stay. It’s just one more thing that humans are learning to live with. Just part of the grind.

So, everyone will have to just add a couple of things to their annual “to-do” list, in addition to:

Get license plate tag
Renew insurance
Change oil in vehicle
Clean eaves troughs
Go to confession
Put up Christmas lights
Change the smoke alarm batteries
Test the carbonmonoxide detectors
File tax return

Add:

*Annual vaccine for the scary new annual [insert name here] variant
* Update vaccine passport accordingly

Carry on.

#93 Prince Polo on 12.04.21 at 11:07 am

#20 Dolce Vita on 12.03.21 at 4:07 pm
Ask Credit Suisse how their popular VelocityShares Daily 2x VIX Short Term ETN (TVIX) worked out for them.

#22 AM in MN on 12.03.21 at 4:12 pm
Exactly. The IPO market takes care of that, along with the creation of new shares by existing firms. They can do this much faster than a developer can build a real house.
Be more worried about panic selling, including from the companies themselves that have loaded up on debt to buy back shares and pay bonuses and dividends.

Those aren’t equity indices! Don’t you like when there are sales on TSX and S&P500?

#94 Satori on 12.04.21 at 12:16 pm

Inadequate
I preach to my kids to go down south after getting their degrees. Where the opportunities are more abundant, pay is higher and housing cost is a fraction of Canadian level. I hope they will follow their uncle’s footstep.

I wish I moved this insanity with housing! As Fredo said in this country’s delusion: “It is quite clever actually…to be rich…on debt. Everyone’s a millionaire!”

SO True!! I have friends living in huge homes, driving Teslas, living the dream on debt… for decades…leaving me wondering if I missed a Memo somewhere???

#95 Felix on 12.04.21 at 12:55 pm

Cat-pitulation?

Yes. We are taking over. Do not disrespect us.

#96 willworkforpickles on 12.04.21 at 1:30 pm

#91 Fredo

Its not about paying off the debt … it never was.
Its about endlessly adding to it with no intention of paying any principle back and where accumulating more and more debt will be this countries ultimate undoing later this decade.
You can go back to your sci-fi.

#97 Infrared on 12.04.21 at 10:20 pm

Finally I love the picture! lol