Prey

There are times the ground shifts beneath our feet. Events are not merely unexpected. They’re unstoppable. With Covid in March of 2020, we had such a moment. Could this be another?

Without hyperbole, exaggeration or conjecture… what’s happening? What can we now expect, given the war, the economic facts and human nature?

Inflation has roared back, and apparently just started. “We forecast an important and persistent 3% deterioration of the household net purchasing power,” says a new report from Scotiabank Economics, “and an increase of the net cost of living that will continue beyond 2023.” The next inflation number in the US will have an 8-handle, and in Canada top 6%. Central banks have lost it. Far behind the curve, they must act quickly to corral costs and raise rates before the next recession arrives.

On Friday the Bank of Canada’s deputy boss Sharon Kozicki said it straight. “We must be prepared to act forcefully.” So by Monday Mr. Market had fully priced in a fat 50-point hike in the bank’s rate two weeks from now. Says BMO Economics: “The hawkish tone of the speech swings the door wide open to more aggressive rate hikes.”

Yesterday we showed you the mountainous chart of Canadian bond yields – which set five-year mortgage rates. Now consider what’s happening in the States. Then in Ukraine.

The US Fed will also be doing half-point bumps. The next in May. Some economists are suggesting a full 1% increase could happen – which would be historic. Citibank says four increases of a half point are coming this year. In any case, the bank rate is set to explode higher from the 0.25% where it now sits. “Historically, we are at ridiculously low levels,” says market analyst Ed Pennock. “The warning bells are going off in the housing markets…. Goodbye soft landing.”

Blog dog and veteran realtor Ron adds: “Thought I would mention that Twitter feeds from agents have been telling a story of a cooling market for about three weeks now. Rates, silly prices, a post Covid mind set, and global worries, all playing a role.”

Have you noticed housing inventories rising? They are. This suggests more listings and slower sales as buyers are spooked by weekly mortgage rate moves. Hence the advice on this blog in recent weeks to (a) stop buying and (b) sell now, if you’ve been thinking about it.

More. With $100 oil and 11 million positions in the States that cannot be filled, plus the lowest jobs claims number in more than 50 years, monetary policy is changing daily. Meanwhile in Canada, a new coalition Lib-Dipper government promises more spending, more deficits, debt, borrowing, taxes and inflation. Given this big fiscal stimulus, the central bank will be removing monetary stimulus faster. Yes, higher rates sooner. Mortgages at 5% or more.

And the war?

It’s a tragedy for tens of millions of people living through it, of course. But it’s lousy news here, too. Some believe this signals big global change. Russia is severed from the international economy. More protectionism, trade wars, tribalism and ethnic nationalism. NATO becomes more militaristic. The world cleaves into two giant factions – the pluralistic and the autocratic. The West and the East. The free and the not-free. The democratic and the dictatorships. And while the woke forces are telling us in this block to worry about gender identity, reconciliation for historic wrongs, pronouns and ESG, the other guys focus on unbridled growth and power. How does this end well?

Russia will be in serious trouble soon. As it flounders, risk rises, the supply chain is more impacted and inflationary pressures grow along with shortages. In response, CBs will continue being hawks and a lot of people who bought houses in Toronto, Bunnypatch, Kits or Squamish in the last year may regret it

Says a new report on equity investing: “It’s not a pretty picture. Now that we know what war looks like, let’s engage in some scenario planning. Imagine peace. How would the global economy and markets react?

We find a best-case scenario of a sudden peace agreement would leave the global economy exposed to additional supply chain aftershocks from the Russia-Ukraine war. A muddle-through scenario would have an even worse outlook.

Where to hide?

Don’t bother asking. These forces are already in play. The storm is here. Stay the course. The economy is still expanding, and financial markets will ultimately absorb both inflation and higher rates. War is unpredictable and irrational. Commodities will bounce around with it. Going to cash guarantees losses as inflation jumps. If a recession materializes, bonds could stage an epic recovery. It’s probably a bad idea to exit any asset class. So turn off BNN and walk the dog.

As for real estate, perhaps a house will turn back into a home instead of a financial play. How weird would that be?

About the picture: “We love your blog- you are the best! Thanks for your contribution to Canadian society and helping us understand financial issues,” write Brady & Cally. “This is Kika. She is a lucky dog who lives in Whistler, B.C. She was rescued from a village north of here and had already produced a litter of pups at the tender age of 6 months. The rescue people fixed her so no more pups but… She is now 10, is very affectionate and intelligent and loves pretending she is a coyote chasing squirrels,. Her DNA test says she is a mix of German Shepherd, Collie, Pointer and Cattledog.”

124 comments ↓

#1 None on 03.28.22 at 2:44 pm

So I have about 10K that is just sitting there. I don’t need it but I don’t really want to put it in anything long term either. What does one do when in this situation?

Long term -> heavy equities; short term -> HISA.

Not sure what to do… Maybe throw in VGRO and just take the hit or gain and roll the dice?

#2 Summertime on 03.28.22 at 2:45 pm

On Friday the Bank of Canada’s deputy boss Sharon Kozicki said it straight. “We must be prepared to act forcefully.” So by Monday Mr. Market had fully priced in a fat 50-point hike in the bank’s rate two weeks from now. Says BMO Economics: “The hawkish tone of the speech swings the door wide open to more aggressive rate hikes.”

So we are apparently unprepared to act forcefully?

As I stated: This who is determined acts.
This who is afraid and has no intend to act, threatens.

Why all that drama and talk? Just increase the damn rates to 3 , 5 or 7 % directly and see what happens.

The stock markets is calling the CB bluff. The emperor has no clothes.

#3 crowdedelevatorfartz on 03.28.22 at 2:58 pm

The B&D portfolio is humming along nicely.
I’m starting to load up on a bit of cash.

A sack of vulture cash can’t hurt.

#4 Søren Angst on 03.28.22 at 3:08 pm

“So turn off BNN and walk the dog.” *

Good advice. Your best ever.

——————–

Hawkish late to the table CBs.

War.

Pandemic.

Rampant inflation.

Unfilled jobs by the millions.

High debt populace and Government.

——–

What could possibly go wrong?

https://www.cnbc.com/2022/03/28/us-bonds-treasury-yields-invert-flashing-recessionary-warning-sign.html

——–

* Nice looking dog today.

#5 Ed on 03.28.22 at 3:15 pm

#134 earthboundmisfit on 03.28.22 at 12:26 pm

“I recently paid almost 70k for a new Jeep Wrangler…”

Calls to mind the old “fool and his money” adage, and certainly not something I’d be boasting about. Consumer Reports rates it the worst of the worst.

If you want an out of the box serious off road vehicle the Rubicon is about the only choice…(I have heard a couple good things about the new Bronco though). I think CR puts more weighting on characteristics that no one with a Wrangler would consider important.

#6 Sam on 03.28.22 at 3:16 pm

Love the article! All doom and gloom then advises nah don’t worry just stay the course it’ll all work out. Well, maybe not for real estate. How convenient lol. Isn’t everything connected? If you believe real estate crashes and burns then it takes the entire economy with it including stocks so make your predictions make sense.

Where did I say anything about ‘crashing and burning’? Nowhere, is the answer. BTW, there is scant connection between overvalued Canadian residential real estate and the Toronto stock market and zero between our houses and global markets. Get over yourself. – Garth

#7 Søren Angst on 03.28.22 at 3:18 pm

“The world cleaves into two giant factions – the pluralistic and the autocratic. The West and the East. ”

True enough.

One thing though.

Autocratic China has its bread buttered by the pluralistic West. It will talk tough out of one side of its mouth but in reality it will not want to give its prosperity.

Pretty sure China was stunned by how fast the West can take all of that away as is being done to Russia.

Watch what they do, not what they say.

Therein lies the truth.

https://www.reuters.com/business/energy/exclusive-chinas-sinopec-pauses-russia-projects-beijing-wary-sanctions-sources-2022-03-25/

https://www.forexlive.com/news/china-has-cancelled-a-500-million-investment-in-russian-gas-20220327/

—————-

Deeds and actions speak louder than words.

And ya, they added words to the deeds and action:

https://www.aljazeera.com/news/2022/3/15/china-does-not-want-to-be-impacted-by-russia-sanctions-fm

Poor Russia is all I will say. Soon to be a 3rd World economy with nukes just like N. Korea. Same sort of nutbar in charge.

#8 Damifino on 03.28.22 at 3:28 pm

And while the woke forces are telling us in this block to worry about gender identity, reconciliation for historic wrongs, pronouns and ESG, the other guys focus on unbridled growth and power. How does this end well?
————————————-

Goliath chases after fairy dust while David gathers up a few good stones. We already know how it ends.

#9 Linda on 03.28.22 at 3:29 pm

Nice to know ‘Kika’ is playing the hunter & not the prey!

Question: does the predicted ‘persistent 3% deterioration of the household net purchasing power’ mean the analysts think inflation will continue to remain at current levels or even higher? I was fairly certain inflation would run ‘hot’ for at least the remainder of 2022 but if I’m understanding correctly it sounds like some analysts think it will run hot all through 2023 as well.

#10 Doug t on 03.28.22 at 3:31 pm

Hard times ahead for many – and many have never experienced hard times

#11 Tom from Mississauga on 03.28.22 at 3:32 pm

ESG will lower productivity, kill creativity and drive inflation for years to come doing none of its stated goals.

#12 baloney Sandwitch on 03.28.22 at 3:34 pm

@ None – spend it. My wife was faced with a similar dilemma recently. She bought herself an LV bag recently and claims its her best purchase ever. Tells her friends I gave it her and forbade me to say otherwise.

Digressing, whoever thought a virus like Covid would infect the brains of Canadian millennials stimulating unbridled housing lust. Now the rutting season appears to be over. Cue the morning after pill – higher interest rates.

#13 Ballingsford on 03.28.22 at 3:36 pm

Forget the notion of anyone addressing housing affordability now. It was practically impossible a few months ago.

Now it’s theoretically impossible.

#14 Grumpy Panda on 03.28.22 at 3:38 pm

The way this article started I thought Garth was saying the woke movement died in Hollywood a few seconds after Will Smith went onstage.

#15 T-Man on 03.28.22 at 3:43 pm

The word is that Russia just pegged the ruble to gold. If so, bye bye ‘Muricun $$$.

That would be a Russian kiss of death. – Garth

#16 Will Smith, Realtor® on 03.28.22 at 3:44 pm

Don’t you dare disrespect my work or the booming real estate market, Garth!

Or I will come over there and SLAP YOU SILLY!

#17 Dogman01 on 03.28.22 at 3:49 pm

#141 BigAl (Original) on 03.28.22 at 2:30 pm

The looting started with the Reagan/Thatcher/Mulroney deregulations that created the financialism that isn’t capitalism, started junk bonds and derivatives and magic accounting, dismantling protectionism and globalist trade that allows free flow of capital and goods (somewhat) but still held labour nationally and regionally prisoner (gee, wonder who loses in that setup?). And instead of wage growth we substituted that with credit growth coupled with the growth of the two income household. Then the looting took off like a rocket with QE. And here we are. ‘Looting’ is the very proper term for what this deregulated financialism has done to our great post ww2 gains of the middle class. Looting of the treasury, Looting of labour. And most of us on here I think we’re fortunate enough to have seen what was happening and ridden the coattails of the looters to give ourselves a chance. I’ve done it. but that doesn’t mean we don’t see it for what it is, and it doesn’t mean we like it.

—————————–

Brilliant summary Big Al!

As a GenX I saw something was rotten in the early 90’s, I realized I can’t beat them so like you I joined them;

“Lots of times you have to pretend to join a parade in which you’re not really interested in order to get where you’re going.” Christopher Darlington Morley

I only hope I am long gone before this reach’s the ultimate end-game.

“You can’t always measure the eventual outcome of an action by what has happened thus far. If a man jumps off a 45 storey building, nothing has really changed during the first 40 floor freefall, it’s the last few that make it interesting and we all know what the final outcome is.” – Warren Buffet

#18 Majid on 03.28.22 at 3:56 pm

I really don’t understand your correlation.
If the energy goes up (which you say it may in your previous article), then cost of construction is going up too. How is that not going to drive house prices up??
Sure, number of sales might go down but that doesn’t mean the price will go down.
So your predictions of 25-40% drop sounds all imaginary.

Not my prediction. Rather a consensus of economists and banks. But you know better? – Garth

#19 Jobs, jobs, jobs on 03.28.22 at 3:58 pm

Is there a precedent for a recession with this many job openings? Seems like even if people lost their jobs in once sector (for example real estate or real estate adjacent) there would be plenty of opportunities to maintain their income. I can’t see a recession happening unless that situation changes.

#20 Barb on 03.28.22 at 3:58 pm

Kika is indeed a lucky dog to be in your family, Brad and Cally. Sad she had pups while only a baby herself.

———————————-
“We find a best-case scenario of a sudden peace agreement would leave …”
Disgusting nonsense!

A sudden peace agreement means PEACE!
So to hell with supply chains; we’ll muddle through.

An oft-used phrase is “rest in peace”.
Why can’t we live in peace?

#21 Grandv!ew on 03.28.22 at 4:01 pm

Testimonial from Ontario lawyer….

Ontario has a huge and growing problem in New Build Construction and it is 5 minutes to midnight. I run a sizable real estate law practice and review many new build agreements every day. I make a point of meeting with every new purchasers in person.
For the past year an overwhelming number of people whose agreement I have reviewed have told me they are going to assign the unit. What is more, in confidence, many have confided that they have minimally viable ways of affording the projects if forced into a closing position.
I bring this up not to talk about market direction (it may go up, it may go down, who knows) but rather to alert people to the fact that there may be a fundamental instability growing at the heart of the new construction world that I am not sure many of us have yet internalized.
In sum, people who are purchasing to assign but cannot close are fine so long as the market keeps rising but, as you would suspect, a change in market conditions is a death knell to such investors.
This is not going to culminate in a minor correction and, to be clear, builders are acutely aware of this issue and are complicit. Most builders are now refusing to accept corporate signatures absent adjacent personal signatures specifically to have those same individualson the hook when the lights turn off on the party. Of course, this is made far worse by the fact that many builders are still accepting the garbage (and often forged) pre-approvals that their own banks require to finance their projects.
And of course, Govt ain’t helping matters on iota. Policy makers and CMHC in particular is laughably bad at policing units that have not closed are doing nothing to even investigate if this IS an issue. In short, we are flying blind and setting ourselves up for disaster.
So, what can be done to address this? I am not sure it is a problem that we can even fix at this point but, at a basic minimum, we can at least come together and acknowledge that this problem exists. After all, you can’t treat a cancer until it is first detected.

https://twitter.com/MarkinMetaForm/status/1505741181560537090?cxt=HHwWhIC-qY_ou-UpAAAA

#22 Søren Angst on 03.28.22 at 4:03 pm

#11 Tom from Mississauga

I have sympathy for what you say BUT you are talking as a Canadian.

Expand your horizons.

————-

Firstly, Canada has to learn not to consume energy like a DRUNKEN SAILOR, same goes for you to America…

https://ourworldindata.org/grapher/per-capita-energy-use?tab=chart&country=CAN~USA~ITA

The Italians are by far more energy conscious making even perfidious “Green” BC look like the Cheap Laughs Family out for a day in the real world.

————-

Secondly, renewables are doing well. Canada and the USA look up to the ever techie Germany who say they can do no more than 32% of renewable energy, simply not possible.

https://www.worldometers.info/electricity/germany-electricity/

Quietly, Italia has pushed renewables to 40%. Without fanfare. Quietly plodding along as Italia does.

https://www.worldometers.info/electricity/italy-electricity/

And here Canada and the USA (and Deutschland) you thought all we were was pizza, pasta, gelato, caffè, make your blood boil car design and fashion.

Well, Busted Flat in Baton Rogue, Italia is more than that when it comes to energy.

————-

Canada needs to get its energy dung together. It can be done. I mean, if the useless Italians can do it SURELY the Norse Gods of the North American/Deutschland Hinterlands Primeval can do it to.

Right?

#23 Steven on 03.28.22 at 4:05 pm

Central banks talk….they did 1 hike, 2 more due.

Ukraine and Russia should cut their losses, save lives by giving Russia what they took and leave the rest of the country alone that is IF the USA can keep their mouths shut for 5 minutes.

#24 Paddy on 03.28.22 at 4:06 pm

Don’t see how anyone can be surprised by the inflation numbers. The governments were giving money away for the better of two years. I hope for the best in the coming years.

#25 Sam on 03.28.22 at 4:10 pm

Garth I know you don’t technically say crash and burn. BUT – You sure do imply it in every blog!!!

Incorrect. If real estate prices were to decline only 5-10% it would cause mayhem among over-leveraged owners with 100% of their net worth in one asset. And it looks like that is exactly what’s coming later in 2022. – Garth

#26 Squire on 03.28.22 at 4:12 pm

Slap ! Oh, was that the sound of reality hitting all the house horny buyers from the past 1.5 yrs. Ouch.
The perfect storm is here. Inflation, high gas prices, high food prices, war, rising rates. Omg, like what else does the FOMO crowd need to realize what’s going on. The people that lived through the 70’s and 80’s know what it means to buy only what you need. Unfortunately, anyone born 1990 onwards has never really had much hardship. Reality is not fake.

#27 pPrasseur on 03.28.22 at 4:24 pm

As for real estate, perhaps a house will turn back into a home instead of a financial play. How weird would that be?

Does this mean some of the estimated 6 years worth of supply of empty homes in Canada should soon go on sale?

If prices plunge as the should this sure is a lot of $$$ to let go up in smoke!

#28 Nostradamus on 03.28.22 at 4:33 pm

Doug Ford will cut OW and ODSP to help upper middle class homeowners pay their mortgages, & make rental income earned from low wage workers tax free. The utopia of late stage capitalism.

#29 Alberta Ed on 03.28.22 at 4:34 pm

Don’t forget the Green Screw (a.k.a. carbon tax), which goes up April Fool’s Day.

#30 PeterfromCalgary on 03.28.22 at 4:39 pm

I am just happy for “Seward’s Folly”. That was what they called it when the US purchased Alaska from Russia in 1867.

That “folly” saved the Great White North from bordering Russia.

#31 I don’t know on 03.28.22 at 4:41 pm

What will happen? Same thing that always happens when autocrats make deals and get together: they always turn on each other eventually.

The west? More unified and stronger than before. Freedom, democracy, capitalism always win out in the end.

Never bet against America.

Houses? Up they will continue to go. Affordability will get worse, not better with higher rates. If you think the divide between those who own real estate and those who don’t is bad now, just wait.

Sitting in cash has been bad for 12 years and will be even worse moving forward as inflation hovers around 5% and assets (both stocks and real estate continue to increase in value).

IDK

#32 Leichendiener on 03.28.22 at 4:42 pm

Ask your elected representative two questions: ‘What is a woman’ and ‘Is nuclear energy green energy’.

#33 Squire on 03.28.22 at 4:43 pm

#26 Squire on 03.28.22 at 4:12 pm
—————————————–
Oops, forgot on more thing which might be import or matter. Return to office during all the aforementioned. I heard gas and lunch is more expensive now.
Yikes !

#34 Captain Uppa on 03.28.22 at 4:43 pm

We need a housing market correction. I want a home to be a home again and not a financial play, as Garth put it.

I hope the greedy specuflippers get a wake up call and real families can have even a small hope of owning their own place.

I was wrong before in the asking for unbridled home price surge. Very wrong.

#35 Squire on 03.28.22 at 4:45 pm

#26 Squire on 03.28.22 at 4:12 pm
—————————————–
Oops, forgot one more thing which might be important or matter. Return to office during all the aforementioned. I heard gas and lunch is more expensive now.
Yikes !

#36 Ed on 03.28.22 at 4:46 pm

Just bought CPC memberships online today to vote for Pierre…somehow I feel like I did something wrong and my bank account will be in danger of being frozen.

It will be a long journey to remove the bitter taste of Liberals I think.

#37 Søren Angst on 03.28.22 at 4:48 pm

#11 Tom from Mississauga

Forgot to mention OVERALL total energy production from renewables.

Canada 18.9%
USA 12.6%
Germany 27%
Italia 33%

Not just electricity, ALL energy needs.

With all the land, water, mountains, coastline, etc. that Canada has been blessed with it ought to be able to produce a whack of its total energy needs from renewables.

Govs Canada have to have a national plan for how to do that. Seems to me that you have 13 cats to herd and it’s not working out well. Everyone’s out doing their own thing.

And Canadians have to learn not to consume energy as if there is no end to it.

——————-

Canada is still a fossil fuel country despite what BS Google tries to sell you on with a 5 second search.

https://www150.statcan.gc.ca/n1/daily-quotidien/210121/dq210121d-eng.htm

“Crude oil accounted for the largest proportion of primary energy production in Canada in 2019, at 50.1%, followed by natural gas (31.8%), primary electricity (8.5%), coal (5.3%) and gas plant natural gas liquids (4.3%).”

Unfortunately I bet on that (oil) not changing much for my investments…

yeah oil

Shouldn’t be. But, it is what it is.

#38 Quintilian on 03.28.22 at 4:54 pm

I can’t understand how undereducated curmudgeons could anticipate this great mess, and Central Banksters and their London School of Economics educated girlie men missed it.

#39 Søren Angst on 03.28.22 at 4:58 pm

On this whole:

Crash and Burn thing

What do I think is going to happen?

High prices, rampant inflation.

CBs talking a good story but they know if they raise rates fast and large they risk a

RECESSION

I don’t believe the self professed “Hawkish CBs” have the stomach for it.

From everything I’ve seen over the past few years they are cowards and do not want to blamed for a recession because they raised too high too fast.

And heaven forbid because of high rates they deny the Gollum’s of Canada their Precious (RE).

—————

So Canada, welcome to ever high & increasing prices until Ryan Lewenza’s Commodity Supercycle sorts itself out.

+5 years of inflation misery to come.

#40 1948 privileged male on 03.28.22 at 5:01 pm

But inflation isn’t falling, it’s RISING.

So the Bank of Canada’s chintzy rate hikes are even more embarrassing than they would be if they were actually catching inflation. The RATE of inflation is still racing away from the rate hikes. These guys are deranged.

They’re doing this on purpose.

They are trying to maintain bubble asset prices when what they should have done is slammed the brakes on everything, and long ago.

They have had every warning signal imaginable and they ignored it, and continue to. It’s running away from them.

Future generations will suffer as a result, just like they were told to invest in Dog coin at its peak, which has fallen by over 65% as we speak.

#41 Sail Away on 03.28.22 at 5:02 pm

Re: Kika

Nice looking girl! Functional conformity looks good with strong forelegs and pasterns, unsloped back, big pads and high nails. And fine work on the nail trimming.

These things are important to a dog.

#42 Mr Canada on 03.28.22 at 5:03 pm

You know things are getting “stupid” when my leased 2020 German SUV is currently worth $20k more than its end of lease buy back value coming up in 3 months.

#43 Lord love a duck on 03.28.22 at 5:04 pm

Garth, you misspelled today’s post.
I believe you wanted to call it “Pray”.

#44 BigAl (Original) on 03.28.22 at 5:06 pm

In the summer of 2011 I was renting a semi-detached house in Milton while my new-build purchase was being built. Those semis were going for the low 300s. My neighbour decided to sell. He told me there was no way the market could sustain those prices and the big crash was inevitable. He said he was playing it smart…cash out, rent for a year or two, and come back and buy for at least 30% less. Those same semis are now in the 1.1 to 1.2 Million range. I sometimes wonder what ever happened to that guy.
And while my rent at that time was 1600, they rent for minimum 2700 now.

I think what’s going to happen is what’s always happened during the blip downturns over the last 20 years like 2008, mid-2010, and the ‘great RE crash of spring 2017″… Owners will just sit on their homes and constrain supply and wait out the market. In Feb 2017 my exact model of cookie cutter home in the burbs was selling for close to 900k. Suddenly in March 2017 it was like a switch was turned off and by Feb 2018 this model was selling at 750. But then the for sale signs dried up too. All discretionary sellers just stopped and sat on their home. Prices started to rise again, and this model is now 1.4 Million. So a 10 or 20 or 30% drop won’t mean much around here. Just will tighten supply.

#45 Inequity on 03.28.22 at 5:13 pm

#30 PeterfromCalgary

At least they were honest enough to buy the land from Russia. The pan handle coming down from Alaska, they stole from us.

#46 jess on 03.28.22 at 5:14 pm

no worries Poilievre says he wants Canada to be ‘blockchain capital of the world’

#47 Reality Check on 03.28.22 at 5:27 pm

I can’t understand how undereducated curmudgeons could anticipate this great mess, and Central Banksters and their London School of Economics educated girlie men missed it.
——————-

Central banks are political beasts and do not want to be the one that is accused of raising rates too fast and causing a recession. So they are always late to the party.

BTW – Tiff Macklem is home grown, having gotten his Phd at U of Western, basically Canada’s monetarist school of the 1980s.

#48 THE DANDADA on 03.28.22 at 5:32 pm

“So by Monday Mr. Market had fully priced in a fat 50-point hike in the bank’s rate two weeks from now.”

Garth your out of touch with the average working citizen. A very low percentage of employees actually invest with or even have an understanding of or care about Mr. Market – they are just trying to keep up with their bills. Increasing interest rates will bury the masses farther into a hole their already in.

The Fed and the BOC will start the recession by raising rates. The current financial system is BROKEN.

https://www.cnbc.com/2022/03/28/el-erian-warns-of-cost-of-living-crisis-says-fed-rate-hikes-could-cause-recession.html

#49 pete from St. cesaire on 03.28.22 at 5:49 pm

It tickles me to see you guys not understanding what’s happening now worldwide. Planning one’s financial investments should be at the bottom of the list at this time. Sorry to be the one to have to break it to you but what’s coming will make Cormac McCarthy’s “The Road” look like a lighthearted feel-good summer romance flick.

#50 crowdedelevatorfartz on 03.28.22 at 5:50 pm

@#38 Quantum Questions
“I can’t understand how undereducated curmudgeons could anticipate this great mess, and Central Banksters and their London School of Economics educated girlie men missed it.”

+++

We can add?

#51 Afk on 03.28.22 at 6:01 pm

Hey I noticed you haven’t been taking any shots at Drake lately, is everything ok?

#52 Soviet Capitalist on 03.28.22 at 6:12 pm

Russia will be in trouble?! Well, yes, but Putin has been preparing for this moment for more than 20 years. Mother Russia, likely, has enough resilience at this point to muddle through.

To the best of my knowledge Russia has never won through its strength, but via the weakness of its opponents. It seems to me this time will be the same: NATO is stronger, but only for as long as its members manage to stick together. I can already smell the discord growing inside the alliance.

#53 BC Renovator on 03.28.22 at 6:18 pm

34 Captain Uppa on 03.28.22 at 4:43 pm
We need a housing market correction. I want a home to be a home again and not a financial play, as Garth put it.

I hope the greedy specuflippers get a wake up call and real families can have even a small hope of owning their own place.

I was wrong before in the asking for unbridled home price surge. Very wrong.

_______

“Captain Downa” now? Downa, Downa, Downa!!

#54 I don’t know on 03.28.22 at 6:23 pm

9 Soviet Capitalist on 03.28.22 at 6:12 pm

Then your sense of smell is off. NATO was created as an alliance to counter the USSR. It’s only when the USSR collapsed that NATO started to unravel.

Well, that just changed last month. Biden has also done a great job of unifying.

Like always, the west will prevail. Even if it takes some time.

IDK

#55 cuke and tomato picker on 03.28.22 at 6:24 pm

Number 43 lord love a duck very funny maybe the
rosary.

#56 yvr_lurker on 03.28.22 at 6:30 pm

And while the woke forces are telling us in this block to worry about gender identity, reconciliation for historic wrongs, pronouns and ESG, the other guys focus on unbridled growth and power. How does this end well?
—-

A home run comment here. At work I am super-careful to avoid any perceived micro-agressions with a few people who are trying to make a mandatory diversity statement and diversity rubric for hirings at my workplace. Seems like outstanding merit of the candidate (i.e. research strength etc..) is not the primary criterion as it used to be. All the while Ukraine burns with Putin and other autocrats flex their muscle wherever they can. I push back in subtle ways, but with 5 –6 years to retirement don’t want to be cancelled out.

#57 earthboundmisfit on 03.28.22 at 6:38 pm

“You know things are getting “stupid” when my leased 2020 German SUV is currently worth $20k more than its end of lease buy back value coming up in 3 months.”

Rumour has it that dealers are trying to extort up to $1000 just to process the paperwork enabling you to exercise the buyback.

#58 Shawn on 03.28.22 at 6:38 pm

Who Stole What land?

#45 Inequity on 03.28.22 at 5:13 pm
#30 PeterfromCalgary

At least they were honest enough to buy the land from Russia. The pan handle coming down from Alaska, they stole from us.

************************************
And after “we” had gone to the trouble of stealing it from the indigenous people fair and square.

#59 Michael in-north-york on 03.28.22 at 6:41 pm

#52 Soviet Capitalist on 03.28.22 at 6:12 pm

Russia will be in trouble?! Well, yes, but Putin has been preparing for this moment for more than 20 years. Mother Russia, likely, has enough resilience at this point to muddle through.
===

Putin spent 20 years installing incompetent administrators at both the federal and local level. Competent people were unwelcome, as such people often hold and express strong opinions. Priority was given to people who always say Yes to their higher-ups.

Now, those mediocre local bosses are expected to quickly remake all the supply chains and replace thousands of the foreign parts that are no longer available. Good luck with that.

#60 pPrasseur on 03.28.22 at 6:46 pm

I don’t believe the self professed “Hawkish CBs” have the stomach for it.

Possibly not wrong, except in the end it’s not the bank but the bond market who gets to decide.

How long will investors lend money at yields well below inflation? Soon or later they pull back and yields explode.

The Canadian RE market is ridiculous and doomed, it’s just a matter of time. The rest of this economy will follow, I wonder if Doug will still love his Canadians banks then.

#61 islander on 03.28.22 at 6:49 pm

https://dailyhive.com/vancouver/vancouver-house-flooding-damage

Hope none of you are invested in this disaster. If so, my condolences. Must be painful to deal with those special assessments just after you’ve just closed the deal.
Oh wait, this story is so “last year” with it’s leaky plumbing, flooding elevators and distressed owners.

Why not invest in Meta’s tiliaverse
https://tiliaverse.com

“Own properties in the Tilia.
Earth Metaverse: no prior knowledge of the crypto world is required, simply pay in your currency by credit card, and we send your NFT property to your virtual Wallet.”

#62 Brad on 03.28.22 at 6:57 pm

Curious to know what the old timers did to preserve wealth in the 70’s and 80’s ? Are there any asset classes that do well in inflationary times?

#63 Dr V on 03.28.22 at 7:06 pm

37 Soren

“Forgot to mention OVERALL total energy production from renewables.

Canada 18.9%
USA 12.6%
Germany 27%
Italia 33%

Not just electricity, ALL energy needs.”
————————————————-

BC has over 30% renewables OVERALL

https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/provincial-territorial-energy-profiles/provincial-territorial-energy-profiles-british-columbia.html

#64 crowdedelevatorfartz on 03.28.22 at 7:08 pm

@#52 Soviet Strategist
” I can already smell the discord growing inside the alliance.”

+++
That “smell” is the torches burning around the Kremlin while the peasants sharpen the pitchforks.

Putin isn’t going to last the year.

#65 Bonds surprise on 03.28.22 at 7:23 pm

“ If a recession materializes, bonds could stage an epic recovery.”

Did you notice what the European gov bonds did when Covid hit? The did not rally, no. Why? Because when the interest rates are so depressed, there’s very little room for the price to increase.

Let’s just hope the Fed and the BoC are able to increase rates meaningfully by the time the next recession hits. Should a recession hit now those bonds be dropping at the same time as equities.

Alternatives? Yup, there are.

#66 DON on 03.28.22 at 7:24 pm

#19 Jobs, jobs, jobs on 03.28.22 at 3:58 pm
Is there a precedent for a recession with this many job openings? Seems like even if people lost their jobs in once sector (for example real estate or real estate adjacent) there would be plenty of opportunities to maintain their income. I can’t see a recession happening unless that situation changes.

**********

Some of those excess jobs might evaporate with the lower demand associated with the oncoming recession.

Garth do we get Greaterfool credits if we help others?

#67 Sail Away on 03.28.22 at 7:45 pm

#62 Brad on 03.28.22 at 6:57 pm

Curious to know what the old timers did to preserve wealth in the 70’s and 80’s ? Are there any asset classes that do well in inflationary times?

——–

My uncles Warren Buffett, Charlie Munger, and Benjamin Graham could pass along some good info.

#68 Stone on 03.28.22 at 7:49 pm

#36 Ed on 03.28.22 at 4:46 pm
Just bought CPC memberships online today to vote for Pierre…somehow I feel like I did something wrong and my bank account will be in danger of being frozen.

It will be a long journey to remove the bitter taste of Liberals I think.

———

A fool and their cash have been parted…

#69 Stone on 03.28.22 at 7:54 pm

It was interesting to see this past weekend lots of open house signs all over the place. Prior this weekend, none to be seen. None! Then this weekend came along and it was like someone turned on a switch. This may be the last breath for residential real estate before the death knell.

Happy to have my B&D portfolio. Sitting at -0.17% YTD. In other words, pretty much floating at breakeven since last week. Steady she goes and hopefully soon uppa! Uppa! Uppa!

#70 conan on 03.28.22 at 7:56 pm

Pretty sure NATO is mobilizing for an incursion into Ukraine. They are not ready, that’s all. Putin has no button to press. A first strike can not be done by one person. Does not matter if it is North Korea, China, or Russia. Something like that has a well thought out process that needs input from many different people.

“Whaaaaaaaaa, I am getting my butt kicked in Ukraine and I want to blow up the world……whaaaaa…..”

Trust me does not happen. Putin gets the pink slip instead.

#71 NoOneOfConsequence on 03.28.22 at 8:08 pm

I am certain that Justin Trudeau and the liberals will come to our rescue – just as they have time and time again.
It’s just paper – who cares? Technically it never needs to get paid back, that’s so old fashioned thinking. Just keep printing and borrowing from the future. It’s not like it matters at all.
First we printed millions, then billions…why stop? Bring on the trillions!

#72 Dr V on 03.28.22 at 8:11 pm

Some study on biofuels and greenhouse gases emissions

https://link.springer.com/chapter/10.1007/978-4-431-54895-9_6

#73 Quintilian on 03.28.22 at 8:12 pm

#44 BigAl (Original) on 03.28.22 at 5:06 pm

Nice story, proves beyond question that the best time to buy real estate was yesterday, because they don’t make land anymore and RE always goes up right?

You conveniently left out the fact that during the period you cite, the BOC went on a bond buying spree, QE, expanded its spread sheet to unprecedented levels, bought MBS’s, financed all risky loan purchases and turned junk bonds into secured bonds thereby dropping mortgage rates well below zero.

If BOC can pull the rabbit out of the hat again, I suppose your scenario can play out over and over in perpetuity.

But I doubt it.

Tick Tock, Tick Tock.

#74 neptunian on 03.28.22 at 8:42 pm

CBs created this mess, and they are way behind the curve now, so they may decide to act quickly to show they are doing something. Then they will over-react

Liberal/T2’s actionless made this bubble bigger, now the Liberal-NDP alliance will make it worse.

Does it start looking dark to amater-genius-always-right RE investors? We will see.

#75 T-Man on 03.28.22 at 8:49 pm

I see there are still a lot of delusional armchair generals here. When Odessa goes down to Russia, it’s over for the Ukkies. Also a lot of portfolio obsessed and Mammon worshippers putting their 2 cents worth in. Waaaa. …

#76 Liberal on 03.28.22 at 8:52 pm

@ Late Stage Capitalism

It seems like the disabled in Ontario are left to the wolves:
https://www.cbc.ca/news/canada/toronto/catheters-funding-healthcare-spinal-cord-injury-1.6393986

#77 KLNR on 03.28.22 at 9:06 pm

@#69 Stone on 03.28.22 at 7:54 pm
It was interesting to see this past weekend lots of open house signs all over the place. Prior this weekend, none to be seen. None! Then this weekend came along and it was like someone turned on a switch. This may be the last breath for residential real estate before the death knell.

could be.
could also be the start of the usual spring market madness.

#78 conan on 03.28.22 at 9:20 pm

RE #61 islander on 03.28.22 at 6:49 pm

I seriously wonder whether these guys have copyright on the maps they are using , or the architectural design of the real world buildings that they are selling.

#79 Peter in Toronto on 03.28.22 at 9:33 pm

US$ now down to 95 rouble from a high of 158. At this rate the rouble will be getting back to the sub-80 area where it was before war broke out. So much for the financial destruction of Russia. The Russians should be thankful to the West for helping them pull the plug on selling their resources in US$ and displaying to the world the truth of the Empire of Lies and Thievery.

No wonder the West is desperately thrashing around for some pathetic made up story of “chemical weapons”.

Deadline for Europeans to cough up roubles to pay for their natural gas is March-31. After that, the valves close and their industrial lives grinds to a halt.

#80 Michael in-north-york on 03.28.22 at 9:34 pm

Delusional armchair general #75 T-Man putting his 0.1 cent worth in. He is too greedy to put in 2 cents, like everyone else does. Whaaaaa, bhaaaaa ..

#81 Sam on 03.28.22 at 9:48 pm

Garth you and many others have been calling for mayhem even if it is among small % of indebted home owners for over a decade now. Danielle Park. Ross Kay. Hilliard Macbeth et al. Eventually you all may be right but it’s doubtful. And even if you’re right and they drop, govt will come to the rescue. Canadians don’t default on homes. They seem to manage and cut spending elsewhere. The only mayhem has been in the markets.

Default is not the issue, nor have I ever suggested so. And no, governments will not ‘rescue’ anyone whose mortgage rate doubles upon renewal. – Garth

#82 T-Man on 03.28.22 at 9:59 pm

Dear # 80, Mike in North York :

If you didn’t put in your $ .2 cents, you’d have no sense at all. Baaahaaahaaa.

#83 DON on 03.28.22 at 10:01 pm

#43 Lord love a duck on 03.28.22 at 5:04 pm
Garth, you misspelled today’s post.
I believe you wanted to call it “Pray”.

**********

Pray is what Prey does.

#84 crowdedelevatorfartz on 03.28.22 at 10:09 pm

@#79 Tea Mensch
“I see there are still a lot of delusional armchair generals here. When Odessa goes down to Russia, it’s over for the Ukkies.”

+++
My 2 cents?
Imagine , just for a minute, that Russia captured all the cities in Ukraine.

Which seems highly doubtful after 35 days of serious losses.
But imagine that Russia now controls every city in Ukraine.

What then?
The fighting stops? Everyone goes back to normal?
In your dreams.
The deaths on both sides would be off the scale and Russia, with their military gutted , their economy bankrupted and their leader in self imposed isolation…. would leave…

No one wins in a war.
They just hold dirt for a while longer than the other guy.
Do you seriously

#85 TurnerNation on 03.28.22 at 10:15 pm

Anyone here was around for the Oil Crisis of early 1970s? Long lines at almost empty gas pumps? B4 my time.

Everything old is new again. Only, this time it’s the long lines at EV Charging stations.
Tesla, the new People’s Car. Ja ja you are free to leave at any time! If you can find a charger.
And the frigid Kanada weather will slice your battery charge in half. Intercity travel will again be for the rich.
The Karbon taxes could cripple air travel, too. (EU is roughly considering the banning of short haul flights where trains also are travelling.)

https://twitter.com/kochiphi369/status/1504190188104429574
Extremely long line to take an hour to charge…this is the solution if you have servants

https://twitter.com/thebenbergman/status/1505679545965314054
The very rare time as a Tesla owner I wish I could pay $6/gallon for gas and be on my way. We need more super chargers


— From the Yellow Tractor Dept. World’s most powerful chainsaw.

https://www.youtube.com/watch?v=75iOaMW-pTE

#86 Stone on 03.28.22 at 10:16 pm

#77 KLNR on 03.28.22 at 9:06 pm
@#69 Stone on 03.28.22 at 7:54 pm
It was interesting to see this past weekend lots of open house signs all over the place. Prior this weekend, none to be seen. None! Then this weekend came along and it was like someone turned on a switch. This may be the last breath for residential real estate before the death knell.

could be.
could also be the start of the usual spring market madness.

———

I realize that part. What was bizarre was that all of a sudden, the realtors are resorting to open houses. Why? Before the “Coming Soon” sign is removed, the “SOLD” sign is up. If things were still frenzied, there would be no need for open houses. Having an open house is a sign of weakness at this point. It means there’s hesitation and that buyers are not jumping over each other to buy.

#87 Doug t on 03.28.22 at 10:18 pm

#55 cuke and tomato
Number 43 lord love a duck very funny maybe the
rosary.

Jesus Murphy buddy stop with the yucks my gut is killing me from laughing – no seriously stop

#88 Won and done on 03.28.22 at 10:20 pm

#46 jess on 03.28.22 at 5:14 pm

no worries Poilievre says he wants Canada to be ‘blockchain capital of the world’

Well, it’s already the “blockhead” capital of the world … that wouldn’t be a stretch!

#89 Jim on 03.28.22 at 10:55 pm

It all blows up in everybody’s face as the s–t hits the fan this spring and into the summer of this year. Rates will blast high enough to send the markets down dramatically. The world will enter a deep recession as governments everywhere cut services, benefits, tax credits etc… just to keep up with higher interest payments on their countries debt loads. Bonds will crash in price as yields soar. Repo & reverse repo credit markets will dry up causing another liquidity crisis. Watch Corporate bankruptcies soar if nothing is done. Once this starts the Fed will have no choice but to cut interest rates to ZERO again! The world is in no shape to stomach higher interest rates no matter what inflation is doing. If markets everywhere are ever allowed to discover “true price discovery” without Central Bank intervention ever again then the imbalances trying to find stability and balance again will destroy economies, corporations, governments etc…everywhere. Our ONLY option forward is to keep manipulating, intervening, printing money etc…. until we can’t. In other words, IT CAN’T BE FIXED ANY MORE……..KEEP KICKING THE CAN DOWN THE ROAD PLEASE!

#90 fishman on 03.28.22 at 10:58 pm

Where to hide? The best hiding spot is in the most obvious place. Back in the 30’s an astute doctorate intellectual became convinced a world war was about to begin. He looked at a globe & decided the safest place to be for the coming conflagration was Guadalcanal. After the war a Jewish women went to Berlin to document & collect an historical record of Berlin Jews. Whom she believed had been completely annihilated. To her amazement she stumbled upon living Jewish men who had survived & even thrived in Berlin all during the war. These Jews were criminals, members of the German Jewish mafia. So its not where you hide. Its what & who you know. The more you can think like a criminal, not necessarily act like one, the better your chances. Add the standby positive attitude the sailor/fisherman takes with him every time he goes to sea. “When you think things can’t get any worse, sure enough they turn around & do.” And your off to the races giving yourself half a chance.

#91 Michael in-north-york on 03.28.22 at 11:00 pm

#82 T-Man on 03.28.22 at 9:59 pm

Dear # 80, Mike in North York :

If you didn’t put in your $ .2 cents, you’d have no sense at all. Baaahaaahaaa.
===

Are you a sheep or a goat? Decide already ..

#92 DON on 03.28.22 at 11:30 pm

#91 Michael in-north-york on 03.28.22 at 11:00 pm
#82 T-Man on 03.28.22 at 9:59 pm

Dear # 80, Mike in North York :

If you didn’t put in your $ .2 cents, you’d have no sense at all. Baaahaaahaaa.
===

Are you a sheep or a goat? Decide already ..

*********
When you guys are finished wrestling in the muck, maybe each of you can research and present a view that is based on something that resembles the present state of affairs from a World wide perspective without troves of raw raw bias gleemed from War news. (that’s one big sentence)

#93 Ben Childers on 03.28.22 at 11:32 pm

Which countries are free today? UK-US ? Not Canada certainly. Trudeau is the autocrat, a Facist really. His ambitions towards a Canada dictatorship seem unstoppable. Like Putin he has been globally chastised but doesn’t blink. Trudeau seems blinded by his thirst for power. Canada is not free. You should have an American account in American dollars if you want to stay free.

#94 T-Man on 03.28.22 at 11:49 pm

#84 : Farts in elevators
#91 : Mork in North york

Quit watching C.N.N. and C.B.C. before your Grey matter disintegrates beyond repair.
I know who the goat is here Maaaa maaaa

#95 So glad I sold on 03.29.22 at 1:30 am

Am noticing price reduced on some listings in Surrey, BC.
There are also 32 listings for Vancouver House – 1480 Howe St. Some have been listed for months.
The Butterfly new development now has 7 assignments listed for sale. Interesting times ahead as interest rates are increasing.

#96 Karma on 03.29.22 at 3:14 am

Haven’t posted here in a while, but I thought some may find this piece interesting, particularly the charts.

https://www.bloomberg.com/opinion/articles/2022-03-29/yield-curve-inversion-isn-t-a-foolproof-indicator-of-recession-this-time?srnd=premium-canada

#97 Meh on 03.29.22 at 5:22 am

#91 Michael in-north-york on 03.28.22 at 11:00 pm
#82 T-Man on 03.28.22 at 9:59 pm

Dear # 80, Mike in North York :

If you didn’t put in your $ .2 cents, you’d have no sense at all. Baaahaaahaaa.
===

Are you a sheep or a goat? Decide already ..

———————————————

Dork in North York, please disconnect your internet and stop skipping your meds. Have you no self awareness?

#98 toronto1 on 03.29.22 at 7:35 am

Something is going on in the bond market… the real inflation numbers are higher then what is being reported and it will continue– food and oil will be higher 6 months from now….
The market is pushing rates very fast, kind of has 2007-2008 vibe to it.

two months ago rates where going to hit 4-5% by end of December we are basically at 4% now on the way to 5% by the end of May or June.
Real estate is the thing that we all focus on– it will go no bid very shortly- see people rush in when they have FOMO but at the slighest turn of events they will rush out or wait..

truth is that no economy, no matter how diversified, how large in GDP etc.. can sustain the massive inflation we are now experiencing. The consumer cannot absorb these levels of inflation and still continue to spend. The truth is what Garth said, without sizeable increases from BoC or FED, they have no bullets left to fight the inevitable recession that will come late 2023-early 2024 if this inflation does not subside.

#99 crowdedelevatorfartz on 03.29.22 at 8:14 am

@#94 Tea mensch
“I know who the goat is here Maaaa maaaa”
+++

You apparently.

@#95 So glad I sold.

It’ll be interesting to see how quickly the RE market rolls over dead and starts to smell.
Long overdue.

#100 Michael in-north-york on 03.29.22 at 8:46 am

#94 T-Man on 03.28.22 at 11:49 pm
I know who the goat is here Maaaa maaaa
===

Sounds like you are a llama. Something exotic can be heard in your Maaaa.

That does not make you any smarter, but enhances your value as a pet.

#101 TurnerNation on 03.29.22 at 8:47 am

Shades of USA back in 2007-2008? And we’re only in the bull market/cresting phase.
Kanada the new home of real estate scams and ponzi collections. They should have piled that money into XRE.TO

“You’ve come a long way baby?”?

https://www.cbc.ca/news/canada/saskatoon/epic-company-collapses-real-estate-500-homes-1.6399770

“”The story behind the company was great. Try to help investors with their investments while providing, you know, affordable housing in Saskatoon. I liked the fact that they were women and that they were promoting trades for women.”
The Epic Alliance group of companies shut down its operations at the end of January. Its investors and property partners learned of the collapse in a 16-minute Zoom call from the company’s founders…”

—–
— People might do well hording these…what is the shelf life of these haha. Buy and Hold?

.Most free COVID-19 rapid test kits still sitting behind pharmacy counters in B.C.(bc.ctvnews.ca)

— So close to normal!
Permanent rolling Economic & Social lockdowns.

.Shanghai To Lock Down In Phases To Rein In Covid-19 Outbreak (ibtimes.com)

— How’s the hospital capacity guys? We’re flush with cash.

.City of Edmonton sets to build a COVID-19 monument (edmonton.ctvnews.ca)

#102 crowdedelevatorfartz on 03.29.22 at 9:37 am

@#101 Turner Nation.

Another Epic fail

Any time I see a financial investment company with “Integrity” or “Honesty” in their name or sales promotional material….

I run in the opposite direction.

#103 Brett in Calgary on 03.29.22 at 9:59 am

Yes, this is interesting.
————————
#79 Peter in Toronto on 03.28.22 at 9:33 pm
US$ now down to 95 rouble from a high of 158. At this rate the rouble will be getting back to the sub-80 area where it was before war broke out. So much for the financial destruction of Russia. The Russians should be thankful to the West for helping them pull the plug on selling their resources in US$ and displaying to the world the truth of the Empire of Lies and Thievery.

No wonder the West is desperately thrashing around for some pathetic made up story of “chemical weapons”.

Deadline for Europeans to cough up roubles to pay for their natural gas is March-31. After that, the valves close and their industrial lives grinds to a halt.

#104 DON on 03.29.22 at 10:34 am

https://www.cbc.ca/news/canada/saskatoon/epic-company-collapses-real-estate-500-homes-1.6399770

Epic company and epic fail….check out what the realtor crowd chimed in.

#105 DON on 03.29.22 at 10:36 am

On the epic post link…TurnerNation and Crowded were already on the scene.

#106 Ponzius Pilatus on 03.29.22 at 11:14 am

#64 crowdedelevatorfartz on 03.28.22 at 7:08 pm
@#52 Soviet Strategist
” I can already smell the discord growing inside the alliance.”

+++
That “smell” is the torches burning around the Kremlin while the peasants sharpen the pitchforks.

Putin isn’t going to last the year.
—————————
Like gas going to 3 bucks by summer?
If you mean Diesel, you may be right.

#107 Ponzius Pilatus on 03.29.22 at 11:24 am

#102 crowdedelevatorfartz on 03.29.22 at 9:37 am
@#101 Turner Nation.

Another Epic fail

Any time I see a financial investment company with “Integrity” or “Honesty” in their name or sales promotional material….

I run in the opposite direction.
——————-
And keep on running.

#108 IHCTD9 on 03.29.22 at 11:36 am

I like how things are shaping up. Inflation is rooted, the US FED is talking 50’s, the BoC has no choice. Looks like these hikes are going to last this time.

Hopefully the flippers and spec’ers get Napalmed out here in bunnypatch. Nothing beats a good steamrolling to tamp down the greedy froth.

#109 Observer on 03.29.22 at 11:39 am

And people wonder why centrists won’t be voting PC in the next federal election.

In a pitch to cryptocurrency investors, Poilievre says he wants Canada to be ‘blockchain capital of the world’

https://www.cbc.ca/news/politics/poilievre-bitcoin-policy-1.6399986

#110 Dharma Bum on 03.29.22 at 11:57 am

#18 Majid

Sure, number of sales might go down but that doesn’t mean the price will go down.
——————————————————————————————————-

Obviously, Majid is not a parrot.

See, you can teach a parrot to be an economist by teaching it two words.

Supply and Demand.

#111 crowdedelevatorfartz on 03.29.22 at 12:07 pm

@#106 Ponzie’s Political Pals promise payola
“Like gas going to 3 bucks by summer?
If you mean Diesel, you may be right.”

++++

Goodness gracious.
Ponzie must be spending too much time on the elevator.
He’s agreeing with fartzy.
Yes ponzie.
Fuel will be $3.00 liter in the Lower Brainland by July 1st and you can be sure the NDP “pittance payola” of $110 cheques to every car owner ( including Tesla owners) for high gas taxes arriving in the Mail sometime in June…wont make a damn bit of difference.

Pathetic bribes from a govt bereft of new ideas drunk on the excess cash their poorly planned “Carbon” tax is raking in..

#112 Dharma Bum on 03.29.22 at 12:09 pm

#62 Brad

Curious to know what the old timers did to preserve wealth in the 70’s and 80’s ? Are there any asset classes that do well in inflationary times?
——————————————————————————————————

Yah….buy residential real estate. Then HANG ON.
Invest in the broader equities market. Then HANG ON.

Prove me wrong.

Those were the good old days, after all.

#113 Sail Away on 03.29.22 at 12:40 pm

Re: opioid crisis

Listening to CBC ‘stories from the street’ about Canada’s opioid crisis, it sounds quite terrible. People keep dying.

If only there were some way to keep these substances out of people’s bodies. Some innovative and as-yet unknown method of prevention. Some simple choice that could be made… A miracle, if you will…

#114 Brian on 03.29.22 at 12:56 pm

Berkshire Hathaway made its crypto investment public with a SEC filing earlier this week. It revealed that Buffett’s company had purchased $1 billion in shares of Nubank, a digital bank based in Brazil, and the largest of its kind in Latin America.

https://fortune.com/2022/02/16/warren-buffett-invested-1-billion-crypto-bank/

#115 zxcvbnm on 03.29.22 at 1:16 pm

CBs are leaning too heavily on sentiment and don’t realize they’ve already lost too much credibility for it to take. They can use “hawkish” tones until they’re blue in the face. Nobody cares. Here we are today, March 29, 2022. In the middle of this mess, and we STILL have stimulus policies in place. Inflation as a meme is 100x more powerful than this bs ‘hawkish’ nonsense. Never mind how much money they’ve printed.

#116 Brian on 03.29.22 at 1:34 pm

During press conference on child care deal with Ontario, PM Justin Trudeau says the war in Ukraine is leading to “heightened urgency” to lower carbon emissions. The Liberals will release their updated climate plan tomorrow.

What???????

#117 WTF on 03.29.22 at 1:41 pm

#95 “There are also 32 listings for Vancouver House – 1480 Howe St. Some have been listed for months.”
————————————————————–
Well after Sunday’s Flood Im betting things just got much worse at Van House.

https://bc.ctvnews.ca/flooding-at-vancouver-luxury-condo-tower-caused-by-gasket-failure-developer-says-1.5392398

#118 Sail Away on 03.29.22 at 1:42 pm

Here’s a case study for learning financial management while also honing one’s job skills. Good old ‘Mr. Sweatband’ Boris:

https://www.msn.com/en-ca/sports/tennis/becker-has-lost-his-wimbledon-trophies-court-hears/ar-AAVDtYv?ocid=msedgntp&cvid=c7156e4c307f48ccb9aaa8dd76d8c628

#119 James on 03.29.22 at 2:20 pm

#116 Brian on 03.29.22 at 1:34 pm

During press conference on child care deal with Ontario, PM Justin Trudeau says the war in Ukraine is leading to “heightened urgency” to lower carbon emissions. The Liberals will release their updated climate plan tomorrow.

What???????
__________________________________________
No its WTF????????????

#120 James on 03.29.22 at 2:24 pm

#111 crowdedelevatorfartz on 03.29.22 at 12:07 pm

@#106 Ponzie’s Political Pals promise payola
“Like gas going to 3 bucks by summer?
If you mean Diesel, you may be right.”

++++

Goodness gracious.
Ponzie must be spending too much time on the elevator.
He’s agreeing with fartzy.
Yes ponzie.
Fuel will be $3.00 liter in the Lower Brainland by July 1st and you can be sure the NDP “pittance payola” of $110 cheques to every car owner ( including Tesla owners) for high gas taxes arriving in the Mail sometime in June…wont make a damn bit of difference.

Pathetic bribes from a govt bereft of new ideas drunk on the excess cash their poorly planned “Carbon” tax is raking in..
____________________________________________
The Carbon tax is a Liberal socialist scheme and it is going to kill the average persons capability so survive these massive inflationary times. The food bank has never ever been so busy.
Thanks Justin you have multiple millions in your Swiss account. The average Joe doesn’t.

#121 T-Man on 03.29.22 at 2:30 pm

#100 – Jerk in North yolk :

Your comment puzzles me. North York is where men are men, and SHEEP are nervous. Zing.

#122 Michael in-north-york on 03.29.22 at 2:49 pm

#121 T-Man on 03.29.22 at 2:30 pm
and SHEEP are nervous. Zing.
===

Don’t worry, you are a llama not a sheep.

#123 Lorne on 03.29.22 at 5:09 pm

#111 crowdedelevatorfartz on 03.29.22 at 12:07 pm
@#106 Ponzie’s Political Pals promise payola
“Like gas going to 3 bucks by summer?
If you mean Diesel, you may be right.”

++++

Goodness gracious.
Ponzie must be spending too much time on the elevator.
He’s agreeing with fartzy.
Yes ponzie.
Fuel will be $3.00 liter in the Lower Brainland by July 1st and you can be sure the NDP “pittance payola” of $110 cheques to every car owner ( including Tesla owners) for high gas taxes arriving in the Mail sometime in June…wont make a damn bit of difference.

Pathetic bribes from a govt bereft of new ideas drunk on the excess cash their poorly planned “Carbon” tax is raking in..
……
Yeh, much better to do what your friend Christy did with ICBC money….put it in General Revenue to make their bottom line look better…..while screaming that Insurance Companies should not be owned by government which is why it wasn’t making money. Strangely enough, with good management, ICBC is thriving and is able to return some of the $ you paid for your insurance. This is a bad thing????

#124 Sail Away on 03.29.22 at 6:02 pm

#123 Lorne on 03.29.22 at 5:09 pm

Strangely enough, with good management, ICBC is thriving and is able to return some of the $ you paid for your insurance. This is a bad thing????

——–

Haha. And all they had to do was double everyone’s insurance to become profitable.

Good management? Hmmm….