The surrender

So what does it sound like when a realtor surrenders?

Here’s Kevin Crigger, head of the largest real estate board in North America, announcing last month’s numbers: “There is now a psychological aspect,” he said, “where potential buyers are waiting for a bottom in price. This will likely continue through the summer.”

And there you have it. The dike has been breached. Bunnypatch was already in deep corrective trouble weeks ago. Now the urban fortress is being flooded with doubt, uncertainty, FOOP and worry. Even in the mighty 416, we’ve just learned, sales have fallen again almost 40% month/month and average prices are declining by $10,000 per week.

Of course, that’s a minor and nascent thing compared to the slide savaging the suburbs. And beyond. Because, ya know, WFH was so 2021. As this blog told you, peak house was when the snow and FOMO were flying in February. Below is a sampling of the toll since then – in only a dozen weeks.

First, the regional report:

And within those large and oft-heavily-populated areas, the blood is flowing. These stats also came before the outsized Bank of Canada rate hike on Wednesday – with many more surprises to come. Here are the percentage price declines from peak (Feb) to the end of May, for example, in Halton:

Brampton -16% (from 1.6m to 1.355m)
Mississauga – 12.6% (from 1.92m to 1.67m)
Oakville -18.7% (from $2.37m to 1.93m)
Burlington -13% (from 1.8m) to 1.58m)
Milton -15% (from 1.7m to 1.4m)
.

To the east, average sale prices in Durham Region have tanked by at least $200,000, and in some cases by more than $400,000 in this brief period of time. It means someone who (for example) bought in Whitby in February for $1.55 million and closed the deal last month now lives in a house worth $1.1 million. If they put 15% down ($232,000 plus closing costs) they have a mortgage that exceeds the value of the home by a staggering $200,000. In other words, all equity was erased and they owe more than they own. Disaster.

Did people in this hotbed of real estate desire ever think they could be in negative equity – underwater – upside-down – in a matter of weeks?

Of course not. And the situation will become even more dire in Kitchener, Cambridge, Woodstock, Waterloo, Kingston, Bancroft, Sudbury plus into Nova Scotia on the east and the LM in BC. “The pandemic induced suburban housing bull market is over,” says Vancouver realtor Steve Saretsky. “Now comes the hangover. In Vancouver’s suburbs aka the Fraser Valley, home sales plunged 54% Y/Y in May. Prices are adjusting quickly.”

Says mortgage broker/guru Ron Butler: “The clear pattern is that those regions that had the wildest percentage increases in 2021 and Jan / Feb 2022 are now experiencing the most dramatic reversals Further reductions? Very likely.”

Says blog dog veteran GTA realtor Ron: “I see zero reason for this trend to abate with another 1/2% rate hike in July, (although rumours persist that Tiff will knock back a shooter and raise rates 3/4% in two months).

In the 23 months of the Covid Boom, the average Toronto home went up $432,000 or 47.9%. (from $902,000 in March of 2020 to 1,333,000 in February 2022. While a Toronto builder yesterday predicted a 20% decline, that would only return us to August of 2021. I see all of the Covid bounce being devoured by the great equity eater in the sky. That will be a 32% decline from the Feb 22 peak.

By the way., that 32% reduction would equal the last purge in the early 1990s, which took 14 years to reverse. Ron reminds us that 85% of the 63,000 realtors in town last month made no sales. “I bought a cool e-bike, going to try Uber Eats delivery to pay for my real estate board fees,” he says.

Okay, well, where from here?

It gets worse. Look at this chart. We have painted ourselves into one hell of a corner, loading up on historic dollops of mortgage debt (the red line) at cheap rates to buy assets at inflated prices,. Telling ourselves (a) houses always go up and (b) they’ll never increase interest rates. Guess what?

Yesterday this pathetic blog reviewed the language in the latest CB statement. It could have been written by Clint Eastwood with help from Schwarzenegger and Stallone, after consulting with Putin. Pure testo. More voices are now forecasting a 75-bip increase in July after two fat 50-pointers. That would be historic. The bank rate will double by September. The prime will be close to 6% at the banks. Variable-rate mortgages will be over 5%. HELOCs at 6.5%. And all this coming when food inflation is crazy and half of all homeowners with mortgages say they’d be stressed to find just $200 a month extra.

So Mr.Crigger got it right. This market is about to freeze. It’s unlikely bargain-hunters flood in, as the Royal LePage house-humper said yesterday, and more likely realtor Ron will soon be cycling around with Butter Chicken Roti dinners in his carrier.

Is it too soon to utter that vain four-word sentence ending in “so”?

About the picture: “Just wanted to say I’m a big fan of your blog,” says Colin, ” and I wish I found it earlier in my life, but have been reading it avidly since finding it. This is our golden retriever, Loki, who is 2 years old and has been the best thing that has happened to my wife and me.  I’m from Nova Scotia, Cape Breton, and am currently completing family medicine residency in the US and will be starting work back home in NS next year”.

154 comments ↓

#1 IHCTD9 on 06.03.22 at 11:57 am

#133 Quitilian on 06.03.22 at 11:16 am
#127 IHCTD9 on 06.03.22 at 10:19 a

“But not left of all the parties he crushed.”

Be honest, how different is the new Ford from a Liberal?
___

Compared to Martin or Chretien? Not much.

Compared to Trudeau? Not even in the same solar system.

#2 Flop… on 06.03.22 at 11:59 am

I probably went a day early with my Flop Drop post yesterday.

In between all the talk of gun control, abortion, and posts about people trying to work out where other posters live, I like to keep it light and airy with an occasional real estate centred post…

M47BC

https://www.greaterfool.ca/2022/06/02/the-bull-is-over/#comment-846009

#3 crowdedelevatorfartz on 06.03.22 at 12:09 pm

So my 0.75% rate increase prediction ( June 1st) was off by a month.

Lets see if people are still poo pooing my $3.00 per liter for gas by July 1st …. on July 2nd.

#4 mitzerboyakaQueencitykidd on 06.03.22 at 12:14 pm

attaboy dougie-mix
Ford more years

#5 crowdedelevatorfartz on 06.03.22 at 12:17 pm

@ Quintillian

“Be honest, how different is the new Ford from a Liberal?”

+++
Apparently not much.
They both seem to implode….catastrophically.
:)

https://www.motor1.com/news/589788/ford-bronco-v6-nhtsa-investigation/

#6 Islander on 06.03.22 at 12:32 pm

Frozen here in North Nanaimo-in more ways than one!

#7 Flop… on 06.03.22 at 12:33 pm

Flop Drops.

According to the REBGV on May 26th, median sale price of detached property was 1.99

Yesterday it had gone down to 1.78

Why can’t the price of gas go down like that?

Yeah, well, talk is cheap, let’s try and show what’s going on as it unfolds in real time.

A couple of weeks ago, we had this livable bungalow go for 1.19

https://www.zealty.ca/mls-R2684752/3592-TURNER-STREET-Vancouver-BC/

Then yesterday I showed this 19 year old house go for the same price as all the knockdowns were going for, at minimum, barely a month or so ago.

https://www.zealty.ca/mls-R2692277/4518-NANAIMO-STREET-Vancouver-BC/

Let’s show one that’s hedging down with the market on the bottom rung.

The details…1536 e 12th Ave, Vancouver.

Original ask 1.59

Now asking 1.44

Assessment 1.2

So they are trying to get ahead of the decline, close to Commercial Dr, not much to look at from the outside, but liveable enough inside for a starter home in this city with a badly disfigured real estate face…

M47BC

https://www.zealty.ca/mls-R2678225/1536-E-12TH-AVENUE-Vancouver-BC/

#8 Dr V on 06.03.22 at 12:34 pm

Nice eyes and a great smile on Loki!

#9 TurnerNation on 06.03.22 at 12:35 pm

What…time zone is this weblog in today lol.

—-
#56 CB Hawk on 06.02.22 at 5:10 pm

^ You might be interested in the Science. Spoiler: there is none:

https://vinayprasadmdmph.substack.com/p/the-best-argument-public-health-should?s=r
“For most interventions that involve behavioral change among people, the ideal study is a cluster RCT. This can measure whether the intervention slows spread among a group of people, when any, some or all comply with it. And it measures spread in the whole group, not just those proscribed the intervention.

Yet, during this time, the US CDC ran zero cluster randomized trials. Zero.
Not on a plane, not on a train, not in your house, not with a— ok maybe they did some mouse studies.
How can anyone justify this? Countless questions and the preeminent federal agency in charge ran ZERO cluster RCTs. They answered zero questions.”



#66 Observer on 06.02.22 at 6:29 pm

^Hey the Science just changed in Kanada. We gonna need these police folks, as violence and illegal gun crime is off the charts:

.Toronto Police revokes vaccine mandate for serving members (tnc.news)

#10 Satori on 06.03.22 at 12:36 pm

#3 crowdedelevatorfartz on 06.03.22 at 12:09 pm
So my 0.75% rate increase prediction ( June 1st) was off by a month.

Lets see if people are still poo pooing my $3.00 per liter for gas by July 1st …. on July 2nd.
—————————————–
$2.15 in W. Kelowna… we are on our way. I have a diesel so filling up today before that doubles. Diesel use to be alot cheaper than gas, not anymore…and it takes less to refine diesel…

Wondering why doesn’t Canada have oil refineries?

Also, since the pipeline was delayed… shouldn’t we be saving gas for ourselves rather than pumping it all out for other countries now? Just curious…

#11 Leftover on 06.03.22 at 12:39 pm

In 1981 inflation was about 11% and they had to swell the bank rate to 14% to get it under control. It took about a year and a half.

In 2022 inflation is 6.7% and the bank rate is 1.5%.

This is just getting started. Don’t even think about relative private and public debt loads.

#12 Islander on 06.03.22 at 12:46 pm

https://www.youtube.com/watch?v=hqOn5XEm86A
…the best real estate ‘horror show’ on record…

#13 Sail Away on 06.03.22 at 12:54 pm

#3 crowdedelevatorfartz on 06.03.22 at 12:09 pm

Lets see if people are still poo pooing my $3.00 per liter for gas by July 1st …. on July 2nd.

——-

My Tesla gets more economical by the day, and with constant over-the-air upgrades, it’s a completely different and more functional car than it was new 7 years ago.

Lawnmowing is expensive, though. It’s like $6 a week. Also chainsawing last week- $8! Sheesh.

#14 rknusa on 06.03.22 at 1:02 pm

re: If they put 15% down ($232,000 plus closing costs) they have a mortgage that exceeds the value of the home by a staggering $200,000. In other words, all equity was erased and they owe more than they own. Disaster.

equity i.e., they lost almost all of their cash down payment they have saved up for who knows how long

now they have to watch their 100% mortgaged asset probably decline another 20% in value over the next 6 months

#15 Balancing act on 06.03.22 at 1:03 pm

#130 Faron on 05.26.22 at 1:01 pm
#126 THE DANDADA on 05.26.22 at 12:36 pm

Twitter hasn’t even made profit yet.

It has, in fact, been profitable for some time. Maybe you should slow down and learn to read the basics of a balance sheet?

_________________

Since when did a balance sheet tell you whether a company was profitable or not?

You are so pathetic yet you think so highly of yourself. Perhaps take a few moments to do some soul-searching and introspection.

#16 cuke and tomato picker on 06.03.22 at 1:10 pm

Garth do you have any stats on Victoria bc real estate.
There were some comments yesterday about people liking it in Victoria and those not so happy living here. For us we love it here. Everybody should live where they are the happiest. Why go through life disgruntled? However, we don’t live down town we live on the Saanich Peninsula rural residential close to Sidney B.C. a beautiful seaside town.

#17 Inequity on 06.03.22 at 1:14 pm

#10 Satori

You don’t know that Canada does in fact have refineries?

When you say delayed, what sort of time frame are you thinking? Because decades of bureaucracy have been delaying them for one reason or another, with the exception of piping crude to the US at below market value. This serves US interests more than Canadian interests.

#18 Ponzius Pilatus on 06.03.22 at 1:18 pm

I like the smell of Butter Chicken in the Morning.

#19 Ponzius Pilatus on 06.03.22 at 1:24 pm

15 Balancing act on 06.03.22 at 1:03 pm
#130 Faron on 05.26.22 at 1:01 pm
#126 THE DANDADA on 05.26.22 at 12:36 pm

Twitter hasn’t even made profit yet.

It has, in fact, been profitable for some time. Maybe you should slow down and learn to read the basics of a balance sheet?

_________________

Since when did a balance sheet tell you whether a company was profitable or not?

You are so pathetic yet you think so highly of yourself. Perhaps take a few moments to do some soul-searching and introspection.
————————-
What?

#20 Shawn on 06.03.22 at 1:26 pm

Costco Sales Roar Ahead in Canada

Costco just reported that its same-store sales growth in Canada in May was 19.5% after adjusting down for the higher gasoline prices and adjusting for currency fluctuations. This is the same-store growth in Canadian dollars . They also report it in U.S. dollars.

Okay so existing Canadian Costco stores collected 19.5% more Canadian dollars this May than last May after adjusting down for higher gasoline prices.

What’s it mean?

Price increases would be part of it. But it’s almost certainly mostly volume. So who is Costco taking market share from?

Some of the extra volume is market share gains but a lot of it may be Canadians just stuffing their bellies, larders and houses with more stuff.

To the extent it is more stuffing, where are Canadians getting the money? Credit card debt like Equifax says?

I have to admit this is a sign of a rip roaring economy rather than the reduction in food and especially merchandise purchase volumes that I was expecting given higher prices and bigger mortgage payments and more spent on gasoline and heating /cooling.

#21 Faron on 06.03.22 at 1:26 pm

#134 Sail Away on 06.03.22 at 11:46 am

Wow, you chose mockery. Baffling ignorance.

FYI, the person who commented under your name a while back wasn’t me. This implies there are at least two people who don’t like you. I can only attest to one of them not being nuts.

You can do you and take risks or not or ignore them, but you are dragging along others who did not make that choice. Your wife, your co workers etc. Unfathomable lack of risk management for someone otherwise paranoid enough to keep a dossier on me.

But, hey, keep defaming me to not have to answer for your crappy ideas, illogic and general nastiness. YDY

#22 dosouth on 06.03.22 at 1:27 pm

I finally got to reconnect with a long time friend after a few years. He is buying a new place with his new snuggle.

I couldn’t believe the sales pitches still being thrown about including their realtor this week telling them a house they had made a full dollar offer on (and was rejected) was being taken off the market last Tuesday and reduced by $175k and relisted on tomorrow at which time they will be taking offers.

They are stressed because they sold both their places and need to be out mid July. Not wanting to rent I told them you can find nice hotels for $175k and wait..

Oh and one of the conditions on his place was that the buyer (61) gets approved for a reverse mortgage on his place in North Van. Guess he isn’t moving soon but we will find out on June 7th.

…but I guess love will find a way….and greater fools abound

#23 Sail Away on 06.03.22 at 1:29 pm

#16 cuke and tomato picker on 06.03.22 at 1:10 pm

Garth do you have any stats on Victoria bc real estate.
There were some comments yesterday about people liking it in Victoria and those not so happy living here. For us we love it here. Everybody should live where they are the happiest. Why go through life disgruntled? However, we don’t live down town we live on the Saanich Peninsula rural residential close to Sidney B.C. a beautiful seaside town.

——–

Agreed, it is a very nice place. The inlaws live in Deep Cove with a boat in the marina for prawning. Lots of great summer BBQ get-togethers around the pool… and we’re just about in the season again!

You’re invited. Get the address from Faron.

#24 Ponzius Pilatus on 06.03.22 at 1:30 pm

#16 cuke and tomato picker on 06.03.22 at 1:10 pm
Garth do you have any stats on Victoria bc real estate.
There were some comments yesterday about people liking it in Victoria and those not so happy living here. For us we love it here. Everybody should live where they are the happiest. Why go through life disgruntled? However, we don’t live down town we live on the Saanich Peninsula rural residential close to Sidney B.C. a beautiful seaside town.
———————————-
Yeah, Victoria is great to visit.
But too much traffic for me.
Sidney is great.
Could easily see myself living there.
And almost walking distance to the Ferry, which is free for experienced humans during the week.

#25 Faron on 06.03.22 at 1:32 pm

#16 cuke and tomato picker on 06.03.22 at 1:10 pm

househuntvictoria.ca is a great resource.

#26 Smart Alec on 06.03.22 at 1:35 pm

#19 Ponzius Pilatus on 06.03.22 at 1:24 pm
15 Balancing act on 06.03.22 at 1:03 pm
#130 Faron on 05.26.22 at 1:01 pm
#126 THE DANDADA on 05.26.22 at 12:36 pm

Twitter hasn’t even made profit yet.

It has, in fact, been profitable for some time. Maybe you should slow down and learn to read the basics of a balance sheet?

_________________

Since when did a balance sheet tell you whether a company was profitable or not?

You are so pathetic yet you think so highly of yourself. Perhaps take a few moments to do some soul-searching and introspection.
————————-
What?

What what? What is not clear about my comment?

#27 Shawn on 06.03.22 at 1:37 pm

Balancing Act at 15 asked in a sincere way:

Since when did a balance sheet tell you whether a company was profitable or not?

*****************************
I get your point that the Income Statement is the main profit indicator but to answer your question about the balance sheet as an indicator of profit…

Actually, pretty much since forever. Look at retained earnings on the balance sheet and see if it is positive.

It’s not a fool proof indicator but except in rare cases (huge dividends and/or huge share buy backs) a consistently profitable company will have positive retained earnings.

#28 Sail Away on 06.03.22 at 1:39 pm

#21 Faron on 06.03.22 at 1:26 pm
#134 Sail Away on 06.03.22 at 11:46 am

You can do you and take risks or not or ignore them, but you are dragging along others who did not make that choice. Your wife, your co workers etc.

——–

Totally not something a dangerously unstable stalker would write on a public blog.

Guys. Knock it off. – Garth

#29 Sail Away on 06.03.22 at 1:58 pm

#28 Sail Away on 06.03.22 at 1:39 pm
#21 Faron on 06.03.22 at 1:26 pm
#134 Sail Away on 06.03.22 at 11:46 am

You can do you and take risks or not or ignore them, but you are dragging along others who did not make that choice. Your wife, your co workers etc.

——-

Totally not something a dangerously unstable stalker would write on a public blog.

——-

“Guys. Knock it off. – Garth”

——-

Gladly. Geez Louise.

#30 Bitcoin Bro on 06.03.22 at 1:59 pm

@ Shawn on 06.03.22 at 1:26 pm

Under normal times, a typical consumer would be crazy to not buy whatever they can at Costco. In an 10% YoY food inflationary environment, even more so. Consumers are just doing the most economically prudent thing. I suspect Costco will only continue to have healthy growth even if we enter the stagflationary recession that JP Morgan and the Wall Street bros are freaking about.

The more interesting question is… at what point does food and fuel inflation start to squeeze the average family with mortgages. Say folks that say, stretched themselves and managed to buy in 18′ and now need to renew at a doubled interest rate.

Garth keeps talking about full employment… what are a bunch of open jobs offering $60K a year worth with the runaway train that is Canadian cost of living at the end of the day?

#31 Timmy on 06.03.22 at 2:04 pm

And prices in Vancouver have dropped less than one percent…ho hum…

#32 Bob on 06.03.22 at 2:06 pm

I see all of the Covid bounce being devoured by the great equity eater in the sky. That will be a 32% decline from the Feb 22 peak.

So prices will decline to pre-covid levels? *Yawn* Prices were stupid back then–off the charts unaffordable according to the OECD. So if this decline comes to be, I guess it will be good for schadenfreude, but not much else.

#33 Dave on 06.03.22 at 2:08 pm

Garth,
despite the drops in these Ontario bedroom communities, prices are still absurdly expensive. Who would pay 1.5 million to live in a commuter town in a province run by a right wing snake?

#34 Faron on 06.03.22 at 2:08 pm

#23 Sail Away on 06.03.22 at 1:29 pm
#16 cuke and tomato picker on 06.03.22 at 1:10 pm

Get the address from Faron

Obliged:

764 Armadillo Wy
Loserville, BC C70 W4Y

#35 Faron on 06.03.22 at 2:13 pm

#26 Smart Alec on 06.03.22 at 1:35 pm

————————-
What?

What what? What is not clear about my comment?

Oops, my bad. I made a mistake, how pathetic. Still, the point was obvious. And, it’s possible to assess profitability if you look at balance sheets over time. Financial statements would have been a better term.

#36 Faron on 06.03.22 at 2:17 pm

#28 Sail Away on 06.03.22 at 1:39 pm

dangerously unstable

Guys. Knock it off. – Garth

Of the two of us, who has made violent threats? Not me. If you actually viewed me as dangerous, why would you continuously provoke me? Illogical. Or you are just engaging in slanderous muckraking. Either way, gross.

I’m done.

#37 Big Bucks on 06.03.22 at 2:18 pm

Garth there has only been 2 big fat 50 pointers so far but rates are definitely going higher than many expect.They can’t bring inflation back to the 2% target range with an overnight rate of 3% when inflation is running at 7%—it’s impossible.

#38 Faron on 06.03.22 at 2:21 pm

#27 Shawn on 06.03.22 at 1:37 pm
Balancing Act at 15 asked in a sincere way:

Thanks Shawn. True.

Guy has a vendetta, so the facts don’t matter here. Reason number 8 million not to give away personal info to random strangers on the internet. One has no clue who is lurking.

#39 Felix on 06.03.22 at 2:24 pm

The Surrender?

Surrender of a dogawful useless canine is an excellent idea!

Here’s some help to get you started.

https://winnipeghumanesociety.ca/dogbsq/

Happy Feline Friday!

#40 Squire on 06.03.22 at 2:28 pm

The perfect storm is hitting bunnypatch. You can’t make this stuff up. Inflation, gas prices, food costs, interest rates rising, dropping real estate values. Weeping and gnashing of teeth cometh thereafter…

#41 Felix on 06.03.22 at 2:29 pm

The surrender?

Surrender of a dogawful useless canine is an excellent idea!

Here’s some help to get you started.

https://winnipeghumanesociety.ca/dogbsq/

Then get a cat. It will improve your IQ and your wealth and happiness :)

Happy Feline Friday!

#42 Søren Angst on 06.03.22 at 2:32 pm

1.5 months.

BoC 0.5%, 0.5% rate increases to 1.5%.

Hard to believe something like that would cripple Cdn RE. So fast. But it did.

The numbers in today’s Blog are staggering.

Getting better for the Kids that want a home.

——————-

Read your OAS Comment yesterday Gart, universality. You’re right, as universal as a Gov program can be, 2020 CRA data:

4,962,700 Cdns 65 yrs and over make $46,605 or less = 76.1% of the +65 crowd.
1,237,500 make $46,605 – $93,208 = 19.0%.

That’s about 96% get all or some OAS.

OAS Clawback (a.k.a., pension recovery tax = 15%) starts at:

$81,761 with a max threshold of $133,527. Someone making $93,208 gets taxed like this:

$93,208 – $81,761 = $11,447

$11,447 x 0.15 = $1,717.05

With an Avg income of about $43K, as you said yesterday Garth, safe to say that most of the $46,605 – $93,208 cohort are clustered near the bottom of that income scale.

https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/recovery-tax.html

—————-

96%. OAS as Universal a program can get.

#43 Eco Capitalist on 06.03.22 at 2:33 pm

#13 Sail Away on 06.03.22 at 12:54 pm

Lawnmowing is expensive, though. It’s like $6 a week. Also chainsawing last week- $8! Sheesh.

Have you looked at the EGO Power Plus products? We have their 21″ mower and one of their snow blowers. They work very well!

#44 bdwy on 06.03.22 at 2:34 pm

#197 dragonfly58 on 06.02.22 at 12:24 pm

Sail Away, you are an Engineer….. A Tesla weighs HOW MUCH !! Doesn’t that upset your inner Engineering sense of efficient design ?

———————–
But he is a civil. Their stuff sits on the ground and isn’t supposed to move. ever. More inertia is a plus.

As a mech i agree 100%. our stuff has to move.

#45 Ponzius Pilatus on 06.03.22 at 2:44 pm

#27 Shawn on 06.03.22 at 1:37 pm
Balancing Act at 15 asked in a sincere way:

Since when did a balance sheet tell you whether a company was profitable or not?

*****************************
I get your point that the Income Statement is the main profit indicator but to answer your question about the balance sheet as an indicator of profit…
—————-
Common misconception about the Income Statement.
I alwas go to the Balance Sheet first.
Lots of stuff can be hidden there.
Accounts receivable is a prime example:
Sales mean very little if you can’t collect.
Many more examples, but unlike Garth I’m not here for free advice.

#46 Jens on 06.03.22 at 2:50 pm

#13 Sail Away on 06.03.22 at 12:54 pm

Are you telling me you’re driving a Tesla but would not switch to an electric lawn mower?

You’d love it. No fumes. Much less noise. And best of all, first thing in Spring, you pull the handle and it roars to life. Zero maintenance cost. Some blade sharpening, that’s all.

#47 willworkforpickles on 06.03.22 at 2:50 pm

Those with cash avoided buying the dips in the RE nightmare of the 90’s . They waited and scooped up the pennies on the dollar deals as they came along.

Newbies then as now think in terms of fundamental logic with regard to the markets as well as with RE.

They got burned then as they will now thinking those with cash will rush in picking up RE at these pullback but still greatly over priced levels.

#48 Jens on 06.03.22 at 2:55 pm

Uber Eats is so pandemic. I think Ron would be much more successful taking his ebike for a daily commute to cooking Butter Chicken Roti lunches for some downtown Toronto eatery, close to all the office towers.

#49 Søren Angst on 06.03.22 at 3:01 pm

From what I can tell from StatCan Wealth & CRA Income stats is that Cdns are:

Asset rich, Cash Flow poor.

Cdn Net Wealth 2019 StatCan

Average = $932,800 ($550,200 of that RE)
Median = $543,200 ($375,000)

and a drop of 20% in home prices gives you revised wealth of:

Average = $822,760
Median = $468,200

Still not bad. Armageddon at a 40% drop:

Average = $712,720
Median = $393,200

Not the end of the World but pretty sure it will put Cdns in an ugly mood, for sure.

—————

72% of Cdns own RE, 1 or more properties. About 28.4M income earners in Canada. This much wealth wiped out in total with a 20% drop:

Average
28.4M x 0.72 x $932,800 x 0.2 = $3,814,778,880,000 or $3.8 trillion.

Median
28.4M x 0.72 x $543,200 x 0.2 = $2,221,470,720,000 or $2.2 trillion.

Paper losses, you have to sell to lose. Still thats a sh!t load of cash.

Won’t do the Armageddon -40% home price calc, that would be too depressing [double the 20% numbers].

People will be in an ugly mood.

#50 T Rex and the dinosaur clique on 06.03.22 at 3:01 pm

Tiff’s in trouble. He looks like a goofball. Folks are talkin’

Word is T2 stooged ‘im.

Well y’can’t go mess up a country and then saunter off to some Uni job teachin’ or an international post some’ere.

No big wallets want their kids learnin’ from a screw up and the deep pockets who run the globalist stuff have reputations…

If good ol’ Tiffy doesn’t clear his good name with some old fashion inflation fighting he won’t be gettin’ much more than a broom or a pair ‘a dishwashin’ gloves for ‘is next postin’

My man’s career’s at stake. About to lose his good name…..

#51 VicPaul on 06.03.22 at 3:10 pm

#15 Cancel Canada Day on 06.02.22 at 2:46 pm

When you add in the $400 Billion that we need to give to First Nations peoples for reconciliation, this debt picture looks even more grim.

We must make amends.

*********

I understand…we are all victims.
The Haida and Nuu-Chal-nuth were slave owners and traders…geez, slavery has been practiced/supported/abolished all over the world for the last 5000 years.
It was never about race (blacks recently made it about race – thanks Alex Haley, Jesse Jackson, Al Sharpton. I’m sure other groups have played that victim card in the past). It’s always been about labour.
When does every group whose every taken anything (land, people, animals, chattels) from anyone else in the history of ever…start paying stuff back? Whose in charge of the equitable distribution of these reparations?
When do the reparations cheques start arriving for…everyone?

M58BC

#52 Søren Angst on 06.03.22 at 3:16 pm

Besides ending WFH at Tesla

“Elon Musk has ‘super bad feeling’ about economy, wants to slash Tesla jobs”

10,000 jobs. Hiring freeze.

https://edition.cnn.com/2022/06/03/tech/elon-musk-tesla-jobs-economy/index.html

Looks like he might buy TWTR after all?

TWTR +0.53% today, USD $40.09/share, Jun 3, 3:13:37 PM UTC-4

(my Albatross single stock pick at $50.89 😢)

#53 Don Guillermo on 06.03.22 at 3:24 pm

Over the past years gas prices in my part of Mexico have trended fairly close to Alberta prices. I left Mazatlan April 16th and at that time it was almost identical. I filled up yesterday in Mexico and it was the equivalent of 1.38 CAD/L. When I left Calgary Monday gas was $171.9. Big difference.
The carbon taxman!

#54 Bk on 06.03.22 at 3:34 pm

Hopefully we see price declines in bunnypatch bc. Prices still holding strong in the burbs/sticks…

#55 Re-Cowtown on 06.03.22 at 3:35 pm

#10 Satori on 06.03.22 at 12:36 pm

Wondering why doesn’t Canada have oil refineries?
+++++++++++++++++++++++++++++++

Canada has a lot of oil refineries, but we could build more if it wasn’t for the environmental lobby paying the Liberals and NDP to kill the oil and gas industry.

The hurdles to build a refinery in Canada are astroginormous compared to say, the U.S Gulf Coast, so guess where refineries are built?

Besides, you guys on the left coast keep buying Alaska crude that is shipped past your door step, refined at Cheery Point, WA and then barged back to the LM and Island.

I think it’s hilarious in a sick and sad sort of way that the ill-informed BC Greenies oppose Canadian pipelines which are infinitely safer than trains or barges for crude transport while 500,000 barrels of Alaskan crude floats by a stone’s throw from Dallas Road every day, every day, every stinkin’ day…

BC… all the risk and none of the benefit…

#56 Richard L on 06.03.22 at 3:37 pm

Apparently the Canadian dairy racket is lobbying for another increase:

https://financialpost.com/commodities/agriculture/canadian-dairy-commission-under-pressure-raise-milk-prices-second-time-this-year

Gotta love that dairy racket. Why bother to compete in export markets when you can hose your domestic consumers.

#57 crowdedelevatorfartz on 06.03.22 at 3:47 pm

@#31 Timmy Von Smug
“And prices in Vancouver have dropped less than one percent…ho hum…”

+++
I guess the 43% drop in SALES wasnt a clue?
First sales dry up.
THEN prices drop.
Give us a shout in Sept. after another rate increase Mr Smug

#58 Caffeine Monkey on 06.03.22 at 3:48 pm

CNBC headline today: “Fed’s Mester says inflation hasn’t peaked and multiple half-point rate hikes are needed”

https://www.cnbc.com/2022/06/03/feds-mester-says-inflation-hasnt-peaked-and-multiple-half-point-rate-hikes-are-needed.html

#59 Paul on 06.03.22 at 3:50 pm

So now with the Liberal, NDP Trudeau, Singh dictatorship you are telling me they are not going to bail out homeowners mortgaged to the top. They may just give them all $600 weekly or $3,000 a month mortgage assistance for 1, 2, 3 years or other income support programs all tax free like child welfare benefit. They may also use other gimmicks, policies of longer term amortizations, deferred mortgage payments for 6 months, 1 year, reduce Bank of Canada rate for mortgage payments say 2%, 3% versus 5.4% today, other mortgage, housing relief like deferred property taxes for non seniors, reduced mortgage payments or modified ones etc.This is just enough to boost prices again with lower interest rates in a year or so.

#60 James on 06.03.22 at 3:50 pm

“….and more likely realtor Ron will soon be cycling around with Butter Chicken Roti dinners in his carrier.”

Nothing wrong with WFH lovers ordering delivery and the gig economy, eh?

Read this:

8/10 delivery workers admit to eating their customers’ food

And 10% admit to peeing or defecating on their properties.

https://www.msn.com/en-us/foodanddrink/foodnews/80-of-delivery-drivers-admit-to-eating-a-customers-order/vi-AAXYfUR

Mmm Mmm, I’m calling UberEats and DoorDash ASAP!

They are Super Spreaders!!

#61 Ya Right on 06.03.22 at 3:55 pm

#36 Faron on 06.03.22 at 2:17 pm

I’m done.

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

Sure ya are.

Like the previous 2,674 times.

If only.

#62 Marzif on 06.03.22 at 3:59 pm

I think Canadian homeowners with mortgages need up to a $500,000 bailout each. This way the higher interest rates and cost of living, inflation will not really impact much the real estate, Canadian economy and all it’s construction, other spinoff jobs.

#63 baloney Sandwitch on 06.03.22 at 4:00 pm

Getting my pool open and was shocked at the price of chlorine – its gone up 50% and the shop is rationing to 1 jug a customer. Also the cost of the jug has gone up 50%. I am sure a lot of gouging is going on. Damn their greedy hearts – they have us over a jug.

#64 calvk on 06.03.22 at 4:01 pm

I happen to love butter chicken roti! Luckily I took your advice Garth and did not spend all my savings buying a property, now I can afford the roti Ron is peddling. You are welcome to dip your roti in my butter chicken.

#65 Nelson from the Simpsons on 06.03.22 at 4:02 pm

Brb going to LCBO to buy me some whisky and celebrate this reduction in real estate prices.

Hoping that it goes down back to 2018 levels, or 2009 levels that would be great. Many young Canadians can’t even afford at the 2009 price range in any measure.

HAHA to those who bought in the Bubble of 2021-22. Good riddance.

#66 JacqueShellacque on 06.03.22 at 4:08 pm

“#56 Richard L: Gotta love that dairy racket. Why bother to compete in export markets when you can hose your domestic consumers.”

I think the current instability in the world food market should make us think twice about how we see domestic food supply. I’m not a fan of $7/pound of butter, but:

-free trade theory is static and overoptimized: comparative advantage is definitely a powerful concept, but trade and economic activity iterate over time. If you ‘specialize’ in something that can go bad (trees, grapes, cows) then you’re done for if that happens. If you let someone else specialize in things that have network externalities and linkages (computers, machines), then you fall way behind them. Ricardo’s classic example had the British trading textiles and the Portuguese trading wine (this was just after the Napoleonic wars – free trade theory has hardly budged since!). The British, in the decades that followed, enjoyed an industrial revolution, while the Portuguese were crushing grapes with their feet.

-It’s not like farming is an in-demand job. It would be different if we were subsidizing people to work plush office jobs, but no one who isn’t a farmer now could probably ever become one.

-I already mentioned food security.

So…even as someone with strong libertarian, maybe even anarco-capitalist beliefs whose idea of a good read is anything from the Austrian school (I might as well have a Mises poster over my bed, where most would want a mirror), I’m against free trade, especially when it involves food, and even if it means I pay more now. Because what this virus has taught is that cheap comes with a price. We’ve saved money on ‘Made in China’ over the last 30 years, but paid that out how many fold in the last 2 years?

#67 Faron on 06.03.22 at 4:10 pm

#52 Søren Angst on 06.03.22 at 3:16 pm

Besides ending WFH at Tesla

“Elon Musk has ‘super bad feeling’ about economy, wants to slash Tesla jobs”

Perhaps it’s worth considering that the 10% slash is a way of covering his arse for threatening to fire his WFH workforce and having people walk. Not a dumb move given that a quit costs less than a lay-off.

w/re Twitter, he has to buy. It’s not as simple as $1 B to walk away. No point in selling here IMO.

Here’s a sick burn of Elon from the Commander in Chief. Hilarious. Elon’s falling apart at the seams.

#68 45north on 06.03.22 at 4:18 pm

To the east, average sale prices in Durham Region have tanked by at least $200,000, and in some cases by more than $400,000 in this brief period of time. It means someone who (for example) bought in Whitby in February for $1.55 million and closed the deal last month now lives in a house worth $1.1 million. If they put 15% down ($232,000 plus closing costs) they have a mortgage that exceeds the value of the home by a staggering $200,000. In other words, all equity was erased and they owe more than they own. Disaster.

coming soon to a theatre near you

#69 The Regulator on 06.03.22 at 4:20 pm

# 56 – Richard L : So you’d rather import hormone injected dairy products from America? 10,000 head dairy corporations have destroyed small farmers there. So why not destroy Canadian farmers so you can eat your Wheaties? Very naive of you. Are you a lobbyist, or just uninformed?

#70 Franco on 06.03.22 at 4:21 pm

Marzif, maybe they should like in Cuba, you can’t sell your house to anyone but only back to the state for only the original price, no profits allowed. A place to live and that is it.

#71 Faron on 06.03.22 at 4:21 pm

#61 Ya Right on 06.03.22 at 3:55 pm

Satori/Smart Alec/Balancing Act/Idiocy

I’m done with the current spat. I’ll continue to take out Sail Away’s garbage relentlessly. ’tis a bounteous font.

#72 BillinBC on 06.03.22 at 4:25 pm

#28 Sail Away on 06.03.22 at 1:39 pm

dangerously unstable

Guys. Knock it off. – Garth

Of the two of us, who has made violent threats? Not me. If you actually viewed me as dangerous, why would you continuously provoke me? Illogical. Or you are just engaging in slanderous muckraking. Either way, gross.

I’m done.
…And not a minute too soon!

#73 Richard L on 06.03.22 at 4:27 pm

#66 JaqueShellaque –

Thank you for your polite rejoinder to my post.

I would point out a couple of things:

– Dairy products are not critical to national food security (despite the dairy industry’s marketing efforts to convince us otherwise)

– If Canadian dairy products were of high quality the industry would not be afraid of international competition

– protecting an inefficient domestic industry costs the country by creating trade barriers for other sectors of the economy. Both the US and NZ have trade complaints against us.

#74 jess on 06.03.22 at 4:28 pm

elon has competition the chevy bolt just had a price reduction

over 6m did not vote in ontario election.

====
with us or against us?
Senate Bill 13,”
https://www.theglobeandmail.com/business/article-rbc-caught-up-in-texas-laws-defending-gun-and-fossil-fuel-industries-2/

#75 The Regulator on 06.03.22 at 4:31 pm

# 55 – Re-Cow town : Well said. This is how divorced from reality these people really are. How about a transfer tax on all Alberta oil going west, to be used to reclaim Alberta oil leases? Say hello to $ 9.00/litre fuel, suckers.

#76 Prince Polo on 06.03.22 at 4:31 pm

Housing to the moon!

Oops sorry. Pricing still needs to plummet beyond the depths of hell, in order to make any sense. Let’s say 700K-800K avg price for GTA proper.

How else to fix the brainwashing of the masses?

#77 Phylis on 06.03.22 at 4:32 pm

“Now there is a psychological effect”, now? Now? Yikes.

#78 Dr V on 06.03.22 at 4:43 pm

45 Ponz

“I alwas go to the Balance Sheet first.
Lots of stuff can be hidden there.
Accounts receivable is a prime example:”
——————————————————-

We always had an allowance for “doubtful” accounts.

But otherwise, I found the balance sheet not much more than accounting bafflegab.

A – L = E. L was straight forward. Here’s the debts, Here’s the payables. Assets? A bunch of written down accounting values that could be out by a significant amount. This made E a fictitious value. I wanted net income, debt repayment, and cash on hand.

#79 ImGonnaBeSick on 06.03.22 at 4:43 pm

#21 Faron on 06.03.22 at 1:26 pm
#134 Sail Away on 06.03.22 at 11:46 am

Wow, you chose mockery. Baffling ignorance.

FYI, the person who commented under your name a while back wasn’t me. This implies there are at least two people who don’t like you. I can only attest to one of them not being nuts.

You can do you and take risks or not or ignore them, but you are dragging along others who did not make that choice. Your wife, your co workers etc. Unfathomable lack of risk management for someone otherwise paranoid enough to keep a dossier on me.

But, hey, keep defaming me to not have to answer for your crappy ideas, illogic and general nastiness. YDY

Says the guy that runs a scraper on the comments section to try to dig up fodder for arguments… Do they teach self projection at weatherman school, or is that just something that defines lefties?

#80 Ponnaps on 06.03.22 at 4:45 pm

Currently based on 2016 values and the 2020 cycle skipped due to Covid, do we know when the property tax revisions will come into effect?

Will this impact homes bought in the last 2 years or only those bought after the revisions occur?

I expect this to severely affect household finances coming out of left field for so many people..

#81 The Regulator on 06.03.22 at 4:55 pm

# 68 – Richard L : Stop drinking Canadian milk, then. Try soy milk, or go vegan. If you’re not already. Move to the states and drink their 100,000 head hormone saturated corporation produced “farm” milk instead.

#82 Dr V on 06.03.22 at 4:55 pm

“With an Avg income of about $43K, as you said yesterday Garth, safe to say that most of the $46,605 – $93,208 cohort are clustered near the bottom of that income scale.”
———————————————

I havent had a complete year of retirement yet, but I suspect I’ll be close to the average, as will Lily.

But that is how it shows on the tax return. I have an accountant and an advisor who work hard on keeping this number within certain ranges. When I work our projected after-tax income back through the tax calculator, it surprises me how much money I would have to make as a single person to match.

#83 Ponnaps on 06.03.22 at 4:56 pm

http://www.butterchickenroti.com stocks flying through the roof..

#84 Faron on 06.03.22 at 4:58 pm

#79 ImGonnaBeSick on 06.03.22 at 4:43 pm

God job, you are picking up on a theme I commented on a few days ago. Projection and general nastiness. A warm welcome to the club!

#85 John Michael on 06.03.22 at 5:03 pm

“It means someone who (for example) bought in Whitby in February for $1.55 million and closed the deal last month now lives in a house worth $1.1 million. If they put 15% down ($232,000 plus closing costs) they have a mortgage that exceeds the value of the home by a staggering $200,000. In other words, all equity was erased and they owe more than they own. Disaster”

It gets worse, most will now be paying 50% more for fuel than they budgeted for and commuting an extra hour each way – all for the pleasure of losing $400k ATAX within a quarter. Sweet.

Well, hopefully this will finally shut up all the real estate geniuses. Here is a well written piece on this topic.

https://pluralistic.net/2022/06/02/residential-casino/

#86 Dave on 06.03.22 at 5:11 pm

I helped my mom sell her house 2 months ago and bought a much smaller house from $700,000 to $400,000. We spend $50,000 to fix it up and is in a decent condition now. Now she does not have to be so tight with money as she can save at least 50% of her RRIF payment, CPP, OAS which comes to $2,400 a month. She can also avoid the ugly mess of a 7%+ reverse mortgage rate and fees that go with it.

The annuity income from the net $200,000 now pays all her property taxes, home insurance, utilities every year. It is $11,890 a year. She is good for 30 years and she may need it being 72 years old.

#87 Linda on 06.03.22 at 5:16 pm

‘Loki’ looks very sweet & innocent for a pup with a trickster name:)

OK, so prices are falling. Yet in the GTA none of the prices quoted are under a million except for Oshawa despite the decline. Even Oshawa is still showing a meaty $900K+ price tag. That is well beyond the reach of one of yesterday’s blog commenters (another Linda) who works for minimum wage yet has managed to save $75K at the ripe old age of 23. Good for her! Hopefully she will follow the advice of this blog & invest her savings in a B&D portfolio rather than continue to keep it in a savings account paying far less than inflation.

Another commenter on yesterday’s blog mentioned the government is making everyone pay back CERB benefits. Provided a link, which outlined that only those who did not qualify for CERB would be required to pay any benefits received back. An appeal process was mentioned as well as flexibility regarding any payback schedule. So not ‘everyone’ will have to pay back CERB.

#88 tbone on 06.03.22 at 5:24 pm

I dont drink milk , i use that almond milk , unsweetened ,
vanilla flavour .
Goes good with plain Cheerios , and a handful of trailmix.
Breakfast of champions !

#89 Ponzius Pilatus on 06.03.22 at 5:34 pm

#53 Don Guillermo on 06.03.22 at 3:24 pm
Over the past years gas prices in my part of Mexico have trended fairly close to Alberta prices. I left Mazatlan April 16th and at that time it was almost identical. I filled up yesterday in Mexico and it was the equivalent of 1.38 CAD/L. When I left Calgary Monday gas was $171.9. Big difference.
The carbon taxman!
—————
One day, when the hurricanes are out of control, and the heat will dry out the Avacado fields.
You will understand.

#90 Mrs Hubris on 06.03.22 at 5:36 pm

To all pumping Victoria here, or the Saanich Peninsula, guessing you have a house, and a GP, and you don’t notice those lying on the sidewalks. Would you repeat all the common mantras too ( we’re so lucky to live here, everybody wants to come here, I make my own Kombucha tea, and so on ). The daily reality is, there are around 900,000 without a GP on the Island. House prices are off the scale and 1 million CAD equals a spectacular dump. Most young people can’t afford to live, far less buy, and the PC gauntlet and exhortation to constant activism prevents open conversation on wider views. In short, lovely place if you are one of the three monkeys who hear no evil, and so on. The weather can be great, if you are used to Edmonton.

#91 RG on 06.03.22 at 5:38 pm

Listings climbing at realtor.ca — 201k a couple of weeks ago, 214k today…

#92 Happy Housing Crash Everyone! on 06.03.22 at 5:39 pm

Is it too soon to utter that vain four-word sentence ending in “so”?

Say it ain’t so?

#93 TheDood on 06.03.22 at 5:41 pm

#10 Satori on 06.03.22 at 12:36 pm

………Wondering why doesn’t Canada have oil refineries?

________________________________

Our corporate masters south of the border make those decisions – they own the companies that own our companies.

#94 willworkforpickles on 06.03.22 at 5:41 pm

Debt ! the bottom line is debt. Fiscal and national debt levels. Remember that first and foremost.

Earlier QE’s served to lower rates and stimulate the economy while debt was still considered manageable before drastically raising overall debt levels.

Now we have rising rates to tackle the resulting inflation and the game of pretend to get inflation under control afoot.

Soon enough, in the months ahead , a recession should/will materialize.

The big question now is what will the Fed do then.

The answer pretty much is the Fed will end rate increases and go full ahead with the next round of QE and try to continue its lame fight with inflation by not lowering interest rates.

Start up QE again without accompanying rate drops…How can that be possible?

You only need go back to the bottom line for that answer.
Debt !

Too much debt reverses QE to where inflation is the result and now we will be struggling with stagflation as well.

The rock and a hard place the Fed will find itself trapped between won’t allow the Fed to lower interest rates but they won’t be raising them any further either.

Monetary easing will be the order of the day into next year with systemic high inflation ever prevalent – along with dropping dollar valuations, with the ultimate consequences of that outcome rearing its ugly head in a few more years.

#95 Flop… on 06.03.22 at 5:44 pm

Uncle Ponzie, a couple things to catch up on.

Slated development in Flopville.

They are looking at bulldozing the Alpen Club and Deutsches Haus restaurant, building condos, but also saving space for the restaurant on 33RD and Victoria.

I only went there once, was disappointed, decided to get on a plane and go to Germany and Austria instead.

When completed I will give the restaurant another shot.

Subject two.

Been watching the new series of Alone stationed in Labrador?

I like civilized camping with the best of them, killing a bear and eating it is a step too far for me.

Survival is probably not the best spectator sport, who knows what I’d be capable of if really necessary?

Perhaps my best survival tale,so far, was waking up from on drunken stupor during The Running Of The Bulls Festival in Pamplona, Spain, realized I had lost my wallet with the directions to the campground inside, convinced a taxi driver to take a urine and blood stained maniac out to the fringes of town, with no money, by rotating my arms by way of showing I remembered windmills the day before.

No Habla Español.

Picking a few berries to see if you get poisoned or not seems pretty pedestrian after some of my escapades…

M47BC

#96 Mattl on 06.03.22 at 5:45 pm

Average Canadian is going to require 400-1K per month to service debts and inflation. Only logical outcome is a significant decline in discretionary spend. The economy is very much dependent on consumer spend. Jeez, I wonder what comes next?

Jamie Dimon is right and I’ve been saying this for months here, we are in for some tough times.

Nope. Only 8% of Canadians are drowning in mortgage debt. For them, misery. But that will not collapse the economy. – Garth

#97 Flop… on 06.03.22 at 5:46 pm

Uncle Ponzie, a couple things to catch up on.

Slated development in Flopville.

They are looking at bulldozing the Alpen Club and Deutsches Haus restaurant, building condos, but also saving space for the restaurant on 33RD and Victoria.

I only went there once, was disappointed, decided to get on a plane and go to Germany and Austria instead.

When completed I will give the restaurant another shot.

Subject two.

Been watching the new series of Alone stationed in Labrador?

I like civilized camping with the best of them, killing a bear and eating it is a step too far for me.

Survival is probably not the best spectator sport, who knows what I’d be capable of if really necessary?

Perhaps my best survival tale,so far, was waking up from on drunken stupor during The Running Of The Bulls Festival in Pamplona, Spain, realized I had lost my wallet with the directions to the campground inside, convinced a taxi driver to take a urine and blood stained maniac out to the fringes of town, with no money, by rotating my arms by way of showing I remembered windmills the day before.

No Habla Español.

Picking a few berries to see if you get poisoned or not seems pretty pedestrian after some of my escapades…

M47BC

https://dailyhive.com/vancouver/vancouver-alpen-club-deutsches-haus-4875-victoria-drive-redevelopment-rental-housing

#98 Ponzius Pilatus on 06.03.22 at 5:49 pm

#73 Richard L on 06.03.22 at 4:27 pm
#66 JaqueShellaque –

Thank you for your polite rejoinder to my post.

I would point out a couple of things:

– Dairy products are not critical to national food security (despite the dairy industry’s marketing efforts to convince us otherwise)

– If Canadian dairy products were of high quality the industry would not be afraid of international competition

– protecting an inefficient domestic industry costs the country by creating trade barriers for other sectors of the economy. Both the US and NZ have trade complaints against us.
————-
I guess you forgot to mention the Baby Formula fiasco in the States.
Even Mexico has plenty.

#99 Reality is stark on 06.03.22 at 5:52 pm

You want to know what your house is actually worth in the GTA?
Take the top number an equivalent house in your neighborhood sold for Feb/22 and multiply by .5.
That is your number.

#100 Ponzius Pilatus on 06.03.22 at 6:04 pm

#78 Dr V on 06.03.22 at 4:43 pm
45 Ponz

“I alwas go to the Balance Sheet first.
Lots of stuff can be hidden there.
Accounts receivable is a prime example:”
——————————————————-

We always had an allowance for “doubtful” accounts.

But otherwise, I found the balance sheet not much more than accounting bafflegab.
———————
Yeah, but who decides what accounts are “doubtful”.
And I was actually talking of large multi national companies listed on the stock exchanges.
Their Annual Reports are usually over 100 pages long.
Its in the notes and the fine print were the juice stuff is.
I agree with “bafflegab”, but the Major Accounting firms make billions producing this reports.
And remember Accounting is not a science.

#101 Mrs Hubris on 06.03.22 at 6:11 pm

Correction and apologies. There is not a shortage of around 900,000 GPs on Vancouver Island. The figure applies to BC overall. The Island is particularly bad however with any number of articles out there, documenting varied figures. Here’s a recent one.

https://www.cbc.ca/news/canada/british-columbia/bc-upcc-critics-1.6467839

#102 Barb on 06.03.22 at 6:11 pm

#10 Satori

“…Wondering why doesn’t Canada have oil refineries?

Also, since the pipeline was delayed… shouldn’t we be saving gas for ourselves rather than pumping it all out for other countries now? Just curious…”
———————–

We’ve all asked that refinery question.
Oh…and the pipeline.
T2 will GIVE IT TO indigenous people before he leaves office.
A $1 billion gift …

#103 NOSTRADAMUS on 06.03.22 at 6:12 pm

PLATIC JESUS!
People who have never been through a major recession are in for a memorable experience. They will shortly come to the realization that “Saved Money,” is the only life boat left on the S.S. Davey Jones.
Is anyone ever wrong anymore? Only a few months ago Realtors of various stripes, all predicting buy now, buy now, or be priced out forever, prices are going to the nose bleed level. Is there a realtor out there who can whisper the 3 magical words “I was Wrong.” You rarely hear that anymore. Truth, the concept held so dear by the Greek Philosophers is so “Passé,” today. What matters is winning, making the sale, ethics, morals, lives ruined be damned.
I suspect that the majority of realtors today with little if any real sales ability will soon be going to the closet to take out their dads hard hats, going to be a lot of debris falling on them shortly, bricks, mortar, houses of speculation all raining down. The realtor predicament reminds me of a quote in the movie, Cool Hand Luke, ” I don’t care if it rains then freezes, so long as I got my plastic Jesus.” I don’t think a plastic Jesus will save the realtors this time. Steady Lads, hold the line.

#104 Don Guillermo on 06.03.22 at 6:15 pm

#89 Ponzius Pilatus on 06.03.22 at 5:34 pm
#53 Don Guillermo on 06.03.22 at 3:24 pm
Over the past years gas prices in my part of Mexico have trended fairly close to Alberta prices. I left Mazatlan April 16th and at that time it was almost identical. I filled up yesterday in Mexico and it was the equivalent of 1.38 CAD/L. When I left Calgary Monday gas was $171.9. Big difference.
The carbon taxman!
—————
One day, when the hurricanes are out of control, and the heat will dry out the Avacado fields.
You will understand.
*******
I have a beautiful avacodo tree in my back yard as well as a very large mango tree. The children from the orphanage next door love to come over and pick bags of mangoes but never seem too interested in the avocados. We also have way too many banana plants. They’re like weeds. Have to thin them out ever so often.

#105 Cats on 06.03.22 at 6:21 pm

#39, #41
Felix, I too love cats, and dogs. But it’s very cruel of you to share the website about surrendering your dog.
Cats could care less if their humans gave up on them, although they’d probably be right peeved, but the sadness for a dog is real.

#106 Ponzius Pilatus on 06.03.22 at 6:21 pm

#95 Flop… on 06.03.22 at 5:44 pm
Uncle Ponzie, a couple things to catch up on.

Slated development in Flopville.

They are looking at bulldozing the Alpen Club and Deutsches Haus restaurant, building condos, but also saving space for the restaurant on 33RD and Victoria..
————
Damn Condos!
I used to have an Account at Edelweiss Credit Union which was right there, too.
And usually met someone there when on banking business and we went for beer to The Alpen Club.
You’re right the food was not something you’d write home to Germany about.
Used to be lots of Germans around, but most of them are now in North or West Vancouver.
Damn Germans, right Dolce.

#107 Fake Sale on 06.03.22 at 6:28 pm

Whatever. This is like a store listing at MSRP to advertise a 20% off sale.

Real Estate needs to drop 55% to 60% to make sense vs. renting.

32%, if it even happens will only solidify March 2020 prices as bottom/sale/good, when they were already detached from average incomes in a big way years before March 2020, maybe even a decade.

#108 Km on 06.03.22 at 6:39 pm

So what happened to the so called supply issue ? We are in world class cities, provinces etc. Immigration will demand more supply this is why house cost so much etc. Just watched a tiktok where the realtor is saying a condo project inn BC is put on hold now. If the supply was an issue why would they shelve it as apparently as the demand is way behind for the next ten years…it is really pathetic to watch all the realtors try to explain or understand what is happening. I do not feel sorry for any of them .

#109 Jay on 06.03.22 at 6:39 pm

$2.15 in W. Kelowna… we are on our way. I have a diesel so filling up today before that doubles. Diesel use to be alot cheaper than gas, not anymore…and it takes less to refine diesel…

Wondering why doesn’t Canada have oil refineries?

Also, since the pipeline was delayed… shouldn’t we be saving gas for ourselves rather than pumping it all out for other countries now? Just curious…

—————————————————–

You have to wonder how Diesel is so much more expensive right now when we produce it in Sturgeon AB from oil extracted in AB and trucked within western Canada.

https://nwrsturgeonrefinery.com/

#110 Flop… on 06.03.22 at 6:44 pm

#106 Ponzius Pilatus on 06.03.22 at 6:21 pm
#95 Flop… on 06.03.22 at 5:44 pm
Uncle Ponzie, a couple things to catch up on.
Slated development in Flopville.
They are looking at bulldozing the Alpen Club and Deutsches Haus restaurant, building condos, but also saving space for the restaurant on 33RD and Victoria..
————
Damn Condos!
I used to have an Account at Edelweiss Credit Union which was right there, too.
And usually met someone there when on banking business and we went for beer to The Alpen Club.
You’re right the food was not something you’d write home to Germany about.

///////////////////////////

Yeah, I messed up by double posting at 95 and 97 as I forgot to post the link in the first one.

Here, take a gander.

https://dailyhive.com/vancouver/vancouver-alpen-club-deutsches-haus-4875-victoria-drive-redevelopment-rental-housing

Looks alright, currently a lot of wasted space in that area, maybe we get a new supermarket just down the hill too?

I stopped walking over that way when the liquidation place called Surplus Sams consolidated at the Burnaby location and I couldn’t go there for my distressed Walmart undies anymore.

Mrs Flop didn’t, and still doesn’t want to do any travel due to Covid-19, but was o.k with me recently driving her out to the cramped Burnaby store with her elderly parents in tow, just for the chance to bargain hunt.

I paid $12 for a winter jacket, and probably shoplifted COVID for free…

https://surplussams.ca

#111 TheDood on 06.03.22 at 6:45 pm

#31 Timmy on 06.03.22 at 2:04 pm
And prices in Vancouver have dropped less than one percent…ho hum…
_____________________

A comment like this is not surprising really. No measures in the last decade have managed to stop people from buying and selling overpriced RE to one another. People in BC are conditioned to think and believe that everyone wants to live here, therefor prices will never go down significantly. This despite having ZERO industries that pay the salaries required to buy at current price point.

Will be interesting to see if ‘ho hum’ is still the response 6 months from now. I hope so, but the reality says otherwise.

#112 Quintilian on 06.03.22 at 6:46 pm

#5 crowdedelevatorfartz on 06.03.22 at 12:17 pm
@ Quintillian

“Be honest, how different is the new Ford from a Liberal?”

+++
Apparently not much.
They both seem to implode….catastrophically.:)

Too funny Crowdie.
But the current thread topic made me think about how you might land on your feet, even after your disastrous decision to gamble-oops I meant to stay invested in the stock market.

My brilliant thinking goes along these lines…. Your portfolio will likely end up being about 30 to 40% down form peak.

That is the bad news.

But the good news is that if you liquidate at the right time, you will be able to purchase real estate at a good 50% discount from the peak, therefore in the end you will be ok.

Nice guys don’t always finish last.

#113 Froggy on 06.03.22 at 6:49 pm

Hi Garth what l think we’re going back to 1999 but partying just in valuation you know the thing let me give you a clue Audi Q3

#114 I don’t know on 06.03.22 at 6:52 pm

07 Fake Sale on 06.03.22 at 6:28 pm

Absolutely. And the likelihood of that happening? Low. Particularly for urban detached homes (and now condos again).

Interest rate increases don’t make houses more affordable. The opposite, actually.

The required monthly carrying costs are higher. Anyone who was priced out before is still priced out. Brokers and mortgage vendors care more about income than anything else for this reason.

It was painfully obvious rate hikes were coming. Anyone who locked in generationally low interest rates can go back to sleep.

IDK

#115 Jenny on 06.03.22 at 7:11 pm

Just got our final Toronto property tax bill in the mail today and now you have to start making a declaration that your house, property is not empty or be taxed 1% of the assessed value, in my case $8,000+ a year extra tax on top of the regular Toronto property taxes we already pay.

I guess how come Doug Ford got a big majority and swept most of GTA including most of Toronto and the NDP, Liberal leaders both quit real fast. I am so glad the number of councilors got reduced in half many years ago.

#116 Jenna on 06.03.22 at 7:13 pm

LOL….prices still strong and holding in Sudbury.

Too funny !

#117 DON on 06.03.22 at 7:15 pm

https://vancouversun.com/news/local-news/benchmark-price-of-detached-home-in-lower-mainland-falls-for-the-first-time-since-pre-pandemic-days

Ho hum…to yikes.

Always make a point of checking the headlines before saying something stupido.

#118 Dave on 06.03.22 at 7:19 pm

Thankfully I am 100% in cash. $825 k in non registered earning $24k a year in interest (soon to be more thanks to Uncle Tiff). Next year Uncle Justin starts sending me OAS and GIS to the tune of $909 per month and wifey gets $257 per month for a total of $14k. Life is good. Meanwhile my registered deposits of 1.1 million are growing by $33k per year. I live comfortably on $24k per year. Uncle Tiff will soon be making me richer and richer. My SFD Bungalow bought in 1997 for $215,000 is supposedly worth $1,500,000.00 but I cannot think that it is really worth that amount.
It is a stoopid ridiculous amount.

Garth…I sense that you are now able to release all of your pent up frustration from years ago and release it via this blog. I am sure that lots of what you will be writing in the future will have been thought of years ago by yourself. There are greaterfools in my neighborhood of Caledon that are reducing their listing prices by $100,000 per month. There are also those who are invested with rescue mortgage companies earning 10%. Sadly when the home owners send jingle mail to the bank, the only losers will be those people who think that the 10% was guaranteed. My basement has a freezer full of food purchased on sale. I have a backup supply of canned food good for 3 months. Lastly my Freeze Dried Food will last another 6 months. I don’t need firearms because it is not a Zombie Apocalypse….it is an interest rate apocalypse and I will be a winner.

#119 crowdedelevatorfartz on 06.03.22 at 7:19 pm

@#112 Quinty’s Quantum Quibbling
“My brilliant thinking goes along these lines…. Your portfolio will likely end up being about 30 to 40% down form (sic: from) peak.”

+++
Your brilliance will never exceed your hubris.
I appreciate your concern with my wealth.
Touching.
Not to worry Quinty.
I’m in this long term.
The economic winds blow forward and back.
I’ve seen it all before. I’ll see it again before I die.
I can ride out the storm.
While I continue to hammer money into the bank account…for the inevitable real estate vultching.
:0

#120 DON on 06.03.22 at 7:21 pm

#114 I don’t know on 06.03.22 at 6:52 pm
07 Fake Sale on 06.03.22 at 6:28 pm

Absolutely. And the likelihood of that happening? Low. Particularly for urban detached homes (and now condos again).

Interest rate increases don’t make houses more affordable. The opposite, actually.

The required monthly carrying costs are higher. Anyone who was priced out before is still priced out. Brokers and mortgage vendors care more about income than anything else for this reason.

It was painfully obvious rate hikes were coming. Anyone who locked in generationally low interest rates can go back to sleep.

IDK

******
Blank Stare.

#121 Timing on 06.03.22 at 7:37 pm

That four word phrase, ending in so, has been absent from our esteemed blog host’s writing these many weeks. This level of restraint is either admirable or baffling depending on how you look at things.

If anyone has earned the privilege of uttering that phrase, no one is more deserving.

#122 Dr V on 06.03.22 at 7:41 pm

112 – Q

“My brilliant thinking goes along these lines…. Your portfolio will likely end up being about 30 to 40% down
form peak.”
——————————————–

Yes, much better to have zero and lose nothing!

#123 X on 06.03.22 at 7:42 pm

Toronto is a great city.

You apply for a job in a Canadian company, and an agency contacts you to tell you that they prefer students with PR, but they can give the job for minimum wage.

Many Toronto apartments are infested with rodents, vermin and cockroach that you work 15 days just to afford the rent, and the remaining 5 working days is to pay for bus fare and food.

#124 Kilt on 06.03.22 at 7:51 pm

Island life not looking too bad!

http://www.vireb.com/assets/uploads/05may_22_vireb_stats_package_64850.pdf

But that flood of listings should make things interesting. I think buyers in the last couple months might be kicking themselves by September.

Kilt.

#125 Mattl on 06.03.22 at 7:54 pm

Nope. Only 8% of Canadians are drowning in mortgage debt. For them, misery. But that will not collapse the economy. – Garth

Consumer spending is my primary concern. All the extra dinero going to the essentials is going to cripple consumer discretionary spending. Add in debt servicing and we have a problem. Never predicted a collapse of the economy but I don’t see how we avoid recession if the Centrals are committed to normalizing rates.

I also expect Corp America to get ahead of this and tighten the expense line significantly.

#126 Faron on 06.03.22 at 7:54 pm

#13 Sail Away on 06.03.22 at 12:54 pm

chainsawing last week- $8! Sheesh.

So that’s what you do with the bodies.

#127 Faron on 06.03.22 at 8:05 pm

One of the reasons people call lefties like me nutso is to gaslight for the reality of the situation which is that of real, murdering nut jobs on the far(ish) right.

BREAKING: Militia member believed to have shot and killed a former judge in Juneau County; sources say suspect hit list included Governor Evers

This includes the growing trend ofChristian white nationalism that underlies things like the trucker convoy and the January 6th insurrection attempt.

When people lash out and call others crazy, it’s usually not the target that should be worried about, it’s the provocateur.

#128 JacqueShellacque on 06.03.22 at 8:06 pm

“#73 Richard L on 06.03.22 at 4:27 pm
#66 JaqueShellaque –

Thank you for your polite rejoinder to my post.

I would point out a couple of things:

– Dairy products are not critical to national food security (despite the dairy industry’s marketing efforts to convince us otherwise)

– If Canadian dairy products were of high quality the industry would not be afraid of international competition

– protecting an inefficient domestic industry costs the country by creating trade barriers for other sectors of the economy. Both the US and NZ have trade complaints against us.”

In an unstable world, I think it’s possible to focus too much on what’s supposedly ‘critical’ now, compared to what could happen if these products weren’t available. We could, for example, say we’re prepared to write off dairy in the worst case, but that would put strain on alternative sources of fat (legumes, fish, eggs) that might worsen any crisis. We may be at a stage where all food production should be considered critical. We’re 7th in the world in arable land available, and right now I’d rather not trade whatever food we can produce for useless stuff from places we’re soon not going to be able to reach.

The quality point I get – if you protect something from alternatives, then there’s no incentive for producers to get it right, or better. As a huge consumer of dairy (weekly I consume enough butter, cream, and mascarpone to feed a small starving village), I would prefer lots of choice at low cost. I think that’s an ideal though, that comes with a price when dynamics and the fragility of the global systems that deliver these products are taken into account.

Regarding efficiency, I guess I’d just refer back to my ‘Made in China’ point. I wouldn’t say efficiency is just paying the cheapest price for something, because there are trade-offs to that which may be poorly understood now, but will bite us with a vengeance later. I also question whether this point applies to farming, because given how few of our population actually produce food compared to how many of us consume it, how much cost (money, goods, etc) are we really talking about in subsidizing food production? Probably not much in the grand scheme of things.

#129 Quintilian on 06.03.22 at 8:15 pm

#114 I don’t know on 06.03.22 at 6:52 pm

“Interest rate increases don’t make houses more affordable. The opposite, actually.”

The boom had started going bust, before the rates went up.

The higher rates will only accelerate the downward pressure on prices.

As for those who are locked in at lower rates, it won’t make much difference, they already bought, they no longer fuel demand, and will be trapped underwater for a very long time.

The crash has begun, you Beth and Honest Realtor should will need to accept your comeuppance.

#130 Shawn on 06.03.22 at 8:27 pm

Bank’s raise deposit rates by less than 50 basis points?

I track the sort of high interest account that I can buy in TD Direct. TDB8150 was recently at 0.75% and now is at 0.95%

If I am not mistaken the bank basically said 20 basis points for depositors and 30 basis points for profit as interest rates rose 50 basis points this week.

I’m okay with that because there is competition. In fact I can access similar products from other banks from within TD Direct. So I suspect competition will force TDB8150 to pay a little more soon.

#131 Shawn on 06.03.22 at 8:45 pm

Costco

#30 Bitcoin Bro on 06.03.22 at 1:59 pm responded
@ Shawn on 06.03.22 at 1:26 pm

Under normal times, a typical consumer would be crazy to not buy whatever they can at Costco. In an 10% YoY food inflationary environment, even more so. Consumers are just doing the most economically prudent thing. I suspect Costco will only continue to have healthy growth even if we enter the stagflationary recession that JP Morgan and the Wall Street bros are freaking about.

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

This is true. Certainly every month some more Candians get a Costco card.

But think about how massive a 19.5% (call it 20%) same-store sales gain is.

If that’s volume as opposed to price, that’s 20% more product out the door.

That’s where a store with 500 employees might now need 600 (setting aside efficiency gains)

This same-store sales gain is massive. It’s not like Costco is brand new. It’s a very mature operation suddenly gaining 20% more sales volume.

Are people stocking up for the Apocalypse? The Apoxalypse? #toiletpaper

#132 Duck Windotlez Bien on 06.03.22 at 8:45 pm

What happens when Doug Gord opens up the Greenbelt, creating more supply?
Right wingers aren’t that fond of immigration, so I wouldn’t anticipate an influx of humans populating Bruce County or Kenora anytime soon.
We got a buck a beer though, and Wynne is no longer teaching mastrbtn to Kindigartners.

#133 Satori on 06.03.22 at 9:10 pm

#55 Re-Cowtown on 06.03.22 at 3:35 pm
#10 Satori on 06.03.22 at 12:36 pm

Wondering why doesn’t Canada have oil refineries?
+++++++++++++++++++++++++++++++

Canada has a lot of oil refineries, but we could build more if it wasn’t for the environmental lobby paying the Liberals and NDP to kill the oil and gas industry.

The hurdles to build a refinery in Canada are astroginormous compared to say, the U.S Gulf Coast, so guess where refineries are built?

Besides, you guys on the left coast keep buying Alaska crude that is shipped past your door step, refined at Cheery Point, WA and then barged back to the LM and Island.

I think it’s hilarious in a sick and sad sort of way that the ill-informed BC Greenies oppose Canadian pipelines which are infinitely safer than trains or barges for crude transport while 500,000 barrels of Alaskan crude floats by a stone’s throw from Dallas Road every day, every day, every stinkin’ day…

BC… all the risk and none of the benefit…
————————
Thank you… makes sense to me. I think also if they are piping oil, maybe the companies can have a few million set aside for any accident then the taxpayer wouldn’t be worried about footing the bill for an oil spill. (I get that it is safer, but I don’t think the masses do).

Appreciate your response and opinion :)

#134 Satori on 06.03.22 at 9:20 pm

#71 Faron on 06.03.22 at 4:21 pm
#61 Ya Right on 06.03.22 at 3:55 pm

Satori/Smart Alec/Balancing Act/Idiocy

I’m done with the current spat. I’ll continue to take out Sail Away’s garbage relentlessly. ’tis a bounteous font.
——————————–

Faron, oh man, you’re missing about 40 others.

No one cares.

You pick fights then point fingers… how about “just chill”, life is too short… you got “tick tock” and then you’re six feet under… and the only part of your life people will remember is that dash – between your birth date and death date.

Try to have fun here, while you are alive, and see that people, opinions, variates and differences make this world a pleasure to be in.

Don’t be so closed minded. Don’t think everyone hates you… add some color to your life. Nothing is black and white… Enjoy! You Can! :D I know it!

#135 Sail Away on 06.03.22 at 9:47 pm

@Shawn

Yep, Costco is a rockstar. One of my longest holdings and religiously added at every dip. Trading at good value right now.

#136 AB on 06.03.22 at 9:54 pm

#55 #75
Well said. Sometimes you have to put your foot down like the Royal family did with that ridiculous woke Harry and Meaghan. An awakening is good for people.

#137 some cash is good on 06.03.22 at 9:58 pm

Shawn, unless you need the money in the first 60 days, why get 0.95%, peanuts really. I can get a 1 year fixed rate 2.50% cashable GIC after 60 days with no interest penalty and no fees with my Parama Credit Union account. It is provincially insured to $250,000 max by FRSAO. I love these cashable GICs because they are flexible usually after 30 or 60 days and I can stagger them so I don’t have to rely on one amount at the same time.

#138 Satori on 06.03.22 at 10:02 pm

#128 JacqueShellacque on 06.03.22 at 8:06 pm
“#73 Richard L on 06.03.22 at 4:27 pm
#66 JaqueShellaque –

Thank you for your polite rejoinder to my post.

I would point out a couple of things:

– Dairy products are not critical to national food security (despite the dairy industry’s marketing efforts to convince us otherwise)

– If Canadian dairy products were of high quality the industry would not be afraid of international competition

-In an unstable world, I think it’s possible to focus too much on what’s supposedly ‘critical’ now, compared to what could happen if these products weren’t available. We could, for example, say we’re prepared to write off dairy in the worst case, but that would put strain on alternative sources of fat (legumes, fish, eggs) that might worsen any crisis. We may be at a stage where all food production should be considered critical. We’re 7th in the world in arable land available, and right now I’d rather not trade whatever food we can produce for useless stuff from places we’re soon not going to be able to reach.

The quality point I get – if you protect something from alternatives, then there’s no incentive for producers to get it right, or better. As a huge consumer of dairy (weekly I consume enough butter, cream, and mascarpone to feed a small starving village), I would prefer lots of choice at low cost. I think that’s an ideal though, that comes with a price when dynamics and the fragility of the global systems that deliver these products are taken into account.

Regarding efficiency, I guess I’d just refer back to my ‘Made in China’ point. I wouldn’t say efficiency is just paying the cheapest price for something, because there are trade-offs to that which may be poorly understood now, but will bite us with a vengeance later. I also question whether this point applies to farming, because given how few of our population actually produce food compared to how many of us consume it, how much cost (money, goods, etc) are we really talking about in subsidizing food production? Probably not much in the grand scheme of things.
—————————

OMG, what???!! Are YOU kidding!!?!?!

Why not just eat plastic then, its cheaper? That cannot be your argument… please.

Why do you think no one is beating down Canada’s door for our dairy???

If you travel or been to any other country ever outside of Canada, you would NEVER think the crap cheese, the tasteless butter (that is white and doesn’t melt) is Good? Our cheese that taste like wax? Our milk that taste like water? Dear, the quality is sorely lacking!!! It isn’t good at all.

Please don’t think the price is good… or acceptable?!! The Dairy Board is the same as communism. Out for only their own interests and giving people ZERO choice. You think that is ‘good’? :(

I buy Kerry Gold in the State for nuthin! Yellow, buttery, creamy, and tasty and full of goodness. When it sits on my counter it is melted just enough to ‘spread like butter’, not like the Canadian crap here that rips apart the bread cause on the counter its frozen and clumpy!! White Lard taste better!!!

“Health is the Greatest Wealth”… so don’t eat Canadian Dairy. Ever! UGH!!!

#139 Dave Willms on 06.03.22 at 10:18 pm

#27 Shawn on 06.03.22 at 1:37 pm
Balancing Act at 15 asked in a sincere way:

Since when did a balance sheet tell you whether a company was profitable or not?

*****************************
I get your point that the Income Statement is the main profit indicator but to answer your question about the balance sheet as an indicator of profit…

Actually, pretty much since forever. Look at retained earnings on the balance sheet and see if it is positive.

It’s not a fool proof indicator but except in rare cases (huge dividends and/or huge share buy backs) a consistently profitable company will have positive retained earnings.

######

As a financial analyst /CPA for nearly 4 decades, I can tell you that looking at retained earnings tells me very little about a company’s current earnings situation as it is but a snapshot in time. A positive retained earnings number does not mean that the company has been profitable of late.

Retained earnings are comprised of a combination of three sources – operating, financing and investment income. Normally, an investor would want to differentiate between the various sources in order to understand how well the core business (I.e. operating) is functioning. It is the amount of profit a company has left over AFTER paying all its direct costs, indirect costs, income taxes and its dividends to shareholders. Oftentimes, an investor will want to know the details of other fundamentals, such as EBIT and EBITDA which are only available from the income statement.

#140 Søren Angst on 06.03.22 at 10:21 pm

#106 Ponzius Pilatus

Damn Germans, right Dolce.

—————–

It is an Italian passtime to tease Germans unmercifully. Unflattering but we call them “testa quadra” among other things.

Yet, they come in the droves to Italia. Personally, I like them. Have taught their students at University (and teased them) but they seem to like Italians no matter what. Glad for it.

My favorite nearby beach, Lignano, at times you think you are in Germany or Austria for the majority language spoken on the beach.

And they’re having a blast you can tell. Glad for that too.

You gotta feel sorry for them though, it’s like +30 deg C something, I’m barely breaking out a sweat and they’re just dying, withering away, slathering on more sunblock, the poor things. Still, they come and are happy to be on our fine beaches. Glad for that too.

————

I still remember during the height to the pandemic in Italia, Germans (Bamberg) singing the Partisan resistance song for us, Bella Ciao:

https://www.classicfm.com/music-news/coronavirus/germans-sing-solidarity-italian-neighbours/

Accent and all, they did a fine job.

THAT tender mercy I will NEVER forget.

#141 Satori on 06.03.22 at 10:21 pm

#75 The Regulator on 06.03.22 at 4:31 pm
# 55 – Re-Cow town : Well said. This is how divorced from reality these people really are. How about a transfer tax on all Alberta oil going west, to be used to reclaim Alberta oil leases? Say hello to $ 9.00/litre fuel, suckers.
———————————-
LIKE I suggested maybe a deposit of 100 million from the oil companies putting down the pipeline, ‘just in case it leaks’ (since they are MOST benefiting from the pipeline thru BC) …. would make BC more open to letting it move forward.

Call it a good faith deposit, because ‘just say’ the pipeline bursts… who foots the bill???? Not ALBERTA, nope it’s British Columbians. And THAT could be in the billions! Here BC people love nature…

Think about it!

#142 Sail Away on 06.03.22 at 10:33 pm

#126 Faron on 06.03.22 at 7:54 pm
#13 Sail Away on 06.03.22 at 12:54 pm

chainsawing last week- $8! Sheesh.

———

So that’s what you do with the bodies.

———

Well, they do have to fit in the crab traps.

#143 crowdedelevatorfartz on 06.03.22 at 10:59 pm

A billion here.
A billion there.

https://nationalpost.com/news/canada/trudeau-signs-historic-1-3b-land-claim-settlement-with-alberta-first-nation

Who cares.
Its only taxpayers that have to deal with it……

One wonders where the Liberal “Helicopter Money” will come from when the economy tightens up and tax revenue drops precipitously………

#144 Ponzius Pilatus on 06.03.22 at 11:11 pm

#141 Satorini
LIKE I suggested maybe a deposit of 100 million from the oil companies putting down the pipeline, ‘just in case it leaks’ (since they are MOST benefiting from the pipeline thru BC) …. would make BC more open to letting it move forward.
————————
Well this is linear thinking.
The Oil companies would probably think “well, we just lost 100 mill in working capital, so in order to recoup it we’ll just cut corners. And if the thing leaks, than our liability is limited to the 100 mill”.
BTW, 100 mill will just be a spit in a bucket in a major leak or spill.

#145 Tom from Mississauga on 06.03.22 at 11:54 pm

Money created by banks through mortgage lending + federal deficit – ESG reducing productivity = runaway consumer inflation

#146 k on 06.04.22 at 2:08 am

#51 Vic Paul Glad to hear someone else that reads History . The Blacks in Africa enslaved a large portion of the continent long before they were offered to White men as a commodity. As well the 1st Nations in Canada enslaved their other fellow natives for centuries. Nobody wants to talk about that . The truth is too hard to take. It’s all WOKE horseshit now. Glad I’m old . The kids are so screwed.

#147 Faron on 06.04.22 at 3:08 am

#134 Satori on 06.03.22 at 9:20 pm

Is this you?

“You could also try eating some makeup, maybe you get pretty on the inside”

Thot so.

Look, I don’t take advice from 10 year olds (unless advised to eat more ice cream). No offense.

#148 James on 06.04.22 at 4:13 am

“To all pumping Victoria here, or the Saanich Peninsula, guessing you have a house, and a GP, and you don’t notice those lying on the sidewalk”

Fear often brings out this type of herd reaction we’re seeing from Victoria. I have a feeling those people glanced at the news the other day of falling average prices and sinking sales here last month and need some support. Next month the market visibly changes.

#149 under the radar on 06.04.22 at 5:58 am

Stupid people paid stupid prices and now the disinfectant of higher rates comes around and people wonder what have they done.

#150 T Rex and the dinosaur clique on 06.04.22 at 8:19 am

So the big thing in the MSM now, following their failed attempt to oust Ford and install their Liberal/NDP coalition, is “how do we change the election system so that this never happens again”

Seriously.

When T2 governs with policies that no one supports using a minority mandate he got by actually losing the popular vote….cricket’s. Not a peep from the press. T2 is woke. His word is biblical. Anyone who disagrees faces the wrath of cancel culture and public ex communication.

Ford actually wins the election and what do we have in the press? Any way we can twist the numbers to make it seem like he lost? We have to change the voting system so he never wins again!

And you wonder why people think our MSM is a corrupt propaganda tool of the Woke movement?

The guy won the election using the same system that Trudeau lost under.

Leave him alone. He’s Premier ok?

#151 Satori on 06.04.22 at 12:29 pm

#147 Faron on 06.04.22 at 3:08 am
#134 Satori on 06.03.22 at 9:20 pm

Is this you?

Yup, 100% me and if your read your comment prior you would see I was responding to your rude posts to me… but since you are always the victim, throwing insults at everyone, please continue…. but don’t rally for any violins. An itty-bitty tiny-weeny responsibility for your current state, is mostly what is required.

AND I will simply continue skipping your posts, and please do the same with mine.

Peace out!

#152 sonny kang on 06.04.22 at 1:13 pm

Garth if you’re ever in Surrey,i shoot me a message. I’ll invite you over. My wife makes the best butter chicken sauce and rice dish you will ever have.

#153 Summertime on 06.04.22 at 3:02 pm

It’s the summer. Prices always drop in the summer. 10% in Toronto is just a touch above the spring fever to summer lull annual drop.

Suburbs will continue to drop.

#154 James Beck on 06.05.22 at 1:57 am

#146 K.

It’s not politically correct to enlighten WOKE with truth, especially if you mention black on black or indigenous on indigenous brutality in any historic sense. For the WOKE, it’s all and only about “The White Devil”.

The Sultan of Zanibar is never mentioned as being the mastermind coordinator of Arabs and Tribal leaders who organized the enslavement of millions along with his Arab Omani and Yemeni partners. Of course, if you ask the CBC, it was Columbus who organized the whites only slave trade. In fact it’s suggested that the African slave trade has operated for up to twenty thousand brutal years.

And, absolutely no one wants to point to archeological evidence of slaving and cannibalism by the Coastal Haida Indians up and down the west coast of North America. It’s all the fault of ‘Gassy Jack and serial killer nuns at residential school, of course. Never mind the fact that after 1948 Residential Schools were not filled by ‘Scoops’ but rather by parents who wanted an education for their children. Hopefully a full forensic coroner will make public the actual cause of death and dates interred. Just for clarity . Will Mr Trudeau ever apologize for our flag at half mast for six months, likely not. And do we as Canadians bear responsibility for ancestral crimes of African sultans and Omani warlords, or even honest farmers granted land to cultivate, no, not a scintilla.