Wheels up

It was a sweet ride. But time to trade. A couple of dings and four years on the road. I’m a car guy, but there’s no way I’m messing with a vehicle containing 1,800 chips. When the ashtray’s full, baby, make a deal.

This was a new experience. I called. Ordered up a nice car (demo) and offered my old one (same model) as a trade. In an hour I had a firm offer on the old buggy that arrived by email without even an inspection or test drive. It was for 82% of the price I’d paid in the spring of ’18.

So now we have new wheels.

And all of us have a new way of measuring inflation in Canada, since ridiculous used-car values will be included in the number published on Wednesday. Moreover, gas prices will be given a larger weight as well, so this index more accurately reflects the life-rattling changes now taking place.

Best guess: 7.3% in May. For June, economists are thinking we’ll hit 8%. Numbers like that have not been seen since the early 1980s, when I was (hard to believe) even more virile, we listened to Juice Newton and there was a Trudeau as prime minister, trying to fight inflation caused in part by rampant federal spending. The average Toronto house sold for $91,000. The annual cost of living increase was 12.4%, pushing the Bank of Canada rate to 17.9% with mortgages topping out at 21.3% – the pinnacle in Canadian history.

So, there ya go, Mills and Zs. Anything can happen.

My trade-in is one reason the CB in two weeks will add 75 bips to its current rate of just 1.5%, which still seems comical in the context of years past. But this has raised home loans from 1.5% to roughly 5.5%. The average Canadian pile of sticks is now worth over $800,000, and two mill in Toronto or Van buys nothing special. Household debt is off the charts, so these rate increases are as devastating currently as 20% mortgages were when I was a daily newspaper columnist telling people to gorge on 19.5% Canada Savings Bonds.

The next BoC rate change is baked in. Mr. Market is giving 80% odds it will rise to 2.25% with the chartered bank prime moving to 4.45%. That’s still only a fraction of the inflation increase, and past experience suggests the “neutral” rate for our central bank – at which the economy’s neither stimulated or restrained – is nowhere near the 2-3% being touted. So does this mean we’re actually headed for 7% GICs and 10% mortgages in a year or two?

Unlikely.

As much as many (including this pathetic blog) believed and forecast rate hikes were inevitable, the impact so far has been shocking. Central banks still have incredibly accommodative benchmark rates – negative, actually, as they’re running far, far below the prevailing inflation rate. Even so, just a few adjustments have brought lightning-fast consequences. Equity markets had a cow and promptly shed a fifth of their value. Bitcoin and crypto flushed away more than $1 trillion in investor capital in a few weeks. Houses in Bunnypatch have been losing $100,000 or more per month. Listings are piling up. Buyers have turtled. Price reductions are everywhere. Man, look at this…

Source: Royal Heritage Realty Ltd.

The economy has shuddered as inflation went from below zero during Covid to almost 9% in the US last month. The Putin war has made it worse. Oil about $100 a barrel is sapping consumer cash flow and confidence. The supply chain is still suffering from the pandemic (a shortage of chips = fewer new cars = my great trade). Credit card rates are north of 20% now and with four in ten people worried about a mortgage renewal in the next 18 months, spending is being curtailed.

That all suggests recession, which is weird when employment is so robust, corporate earnings have been decent and we’re in a post-pandemic expansion phase. This would not be happening and higher rates could be absorbed if it were not for one little thing. Debt.

Mortgage debt, HELOC debt and consumer debt are surging in cost at a time when all three have never been higher. Financial markets are worried about the impact this will have on growth and on future profits, hence the declines of late. Assets like stocks and bonds (and crypto) have been quickly repriced for this new reality, and real estate is following. Rates will rise a lot more. Inflation will eventually roll over. The cost of money will then stabilize – but at a higher level than now.

Meanwhile the debt will sit there, undiminished in any way by a reset in the value of your house or your investment condo.

The winners, as always, will be those with liquid wealth and manageable or nil borrowings. They can buy low, poach distressed assets, vultch bargains and invest at crushed levels.

We’re not there quite yet. I’ll let you know.

About the picture: “Hi Garth, took this of three great guys,” writes Rob from Kamloops, “patiently waiting for their owner to have breakfast at the Eagle Plains hotel restaurant, 35 km south of the Arctic Circle on the Dempster Hwy yesterday.”

133 comments ↓

#1 Mortimer on 06.19.22 at 2:36 pm

I asked my hvac guy how much a new residential system went up in price in the last year

46%

Wait til next summer he said, and asked rhetorically what is going to stop this?

Only the gutting of the average family, that’s what.

#2 T Rex and the dinosaur clique on 06.19.22 at 2:40 pm

Weird thing about the cars.

Tried it out, to see if the rumours were true.

Hit up my local VW dealer (they usually have the longest wait for car purchases)

Just like they said.

I asked about a Jetta. None available, they said.

How about a Golf. Same problem.

You can order one. But they don’t have stock.

On the way out, I notice this group of new cars just sitting there, stickers still on the windows.

I go back it.

Ask them about those.

“Oh” , says the sales lady “those are all manual” “No one wants them. No one can drive them”.

I am like huh? You have a row of brand new cars and you don’t even talk to me about them ’cause they’re stick shift and you figure no one can drive them?

Turns out there are plenty of cars available.

You just need to not want two things

1. An electric car (the wait lists are epic)

2. An automatic transmission

Although I was just there for fun, now I am thinking maybe I could get a deal on one of these unwanted orphan cars.

Only problem is, my current car is a 5spd. So I won’t be able to sell it.

#3 Søren Angst on 06.19.22 at 2:41 pm

We’re not there quite yet. I’ll let you know. – Garth

I will wait until then. Will build up some Threadbare vulch funds in the meantime.

——————

What with Putin cutting gas supplies to Italia, a symbolic go copulate with a duck from Draghi.

The seized in March €530M Andrey Melnichenko yacht, largest sailing ship in the World, in Trieste and made available to Fincantieri S.pA. – Arsenale Triestino S.Marco (Fincantieri is one of the largest shipbuilders in the World):

https://www.rainews.it/tgr/fvg/video/2022/06/fvg-mega-yacht-oligarca-russo-Melnichenko-a-in-rada-a-trieste-68210317-1bf2-426a-9c2f-54245cb1335b.html

“…torna così a disposizione di Fincantieri”

Italian read in between the lines for:

“Do your worst.”

A comfy womfy “official” 32 deg C today, no heat warning. Credit Agricole date and temperature sign across the piazza from me read +40 deg C today – still no heat warning.

Welcome to Italia where she lies about the temps so as not scare off “i turisti”.

#4 YVR Renter on 06.19.22 at 2:56 pm

So the teeny tiny, builder junk bungalow I told ya about a month or so ago has sold. They listed after peak market for a ridiculous $1.25 million. Sold for $987,000 after a couple of months. Almost $300K less than they originally asked, but still ridiculously overpriced to have your neighbors on top of you.

#5 crowdedelevatorfartz on 06.19.22 at 3:01 pm

Ahhh the Eagle Plains Lodge on The Dempster Highway.
A must do for any Canadian Road Warrior.
I pulled in there in my truck for a washroom break and gas and a crowd of people came out hoping i was “the spare parts guy” from Whitehorse…..
When they realized I was just another rare tourist headed north to the Inuvik…..some of them looked suicidal….

Kinda what people with too much debt now are going to be like in about 12 months of steadily increasing Mortgage, HELOC, Visa, car payments…….

#6 The real Kip (Ret) on 06.19.22 at 3:05 pm

The Fed/BoC have caused this current inflation and a ridiculously low 2.25% will encourage more of it. The spread is wider than ever. Hope everyone enjoyed those stimmy cheques.

#7 crowdedelevatorfartz on 06.19.22 at 3:05 pm

@#2 T-Rex
“Turns out there are plenty of cars available.
You just need to not want two things
1. An electric car (the wait lists are epic)
2. An automatic transmission.

+++++
Hmmmm
My current low mileage, mint condition truck is an automatic and my last truck was a “stickshift”.

i may look into that.

#8 TurnerNation on 06.19.22 at 3:05 pm

In my city a Mortgage Broker office dots so many a street corner. Peak money.
Today they function much like an old-timey Bucket Shop. Your mortgage application likely will go into the ‘Declined’ mesh basket. Everything old is new again:

https://en.wikipedia.org/wiki/Bucket_shop_(stock_market)
“..a bucket shop is “an office with facilities for making bets in the form of orders or options based on current exchange prices of securities or commodities, but without any actual buying or selling of the property”.”



Attention filthy renters. I don’t know which primordial level you guys oozed up from but…Oops wait — I AM a renter. Ahhh this is embarassing.

I cannot afford the typical GTA abode at 1.5m & 2% rates.
At 1m with 4% rates? Nope.
How about $750,000 and 6%? No dice.

One thing I know, by 2030 I will Own Nothing and Be Happy, and Eat the Bugs.
Just what our global rulers want.

.World’s largest cricket farm finishes construction in London, Ontario
The massive facility will employ just 60 workers and will rely mostly on artificial intelligence, technology that won the developers awards from the United Nations for commitment to Sustainable Development Goals.
The massive facility run by Aspire, which the CBC describes as “a global industry leader in the production of edible insects,” will generate 9,000 metric tons of crickets that can be consumed by humans and pets, Canadian Manufacturing reported. (rebelnews.com)

#9 Cheese on 06.19.22 at 3:14 pm

I continue to drive my diesel standard 2006 Jetta wagon, the un-sexiest rust machine on the roads today. However the $120 to fill the tank is getting very painful. I hypermile where I can, engine brake, drive more slowly on the highway to reduce drag, and am approaching 5L/100km.

Still consumes a massive portion of my income at 20/hr.

I suspect it will only get worse. Cycling the 40km to work might be a thing at some point.

#10 wallflower on 06.19.22 at 3:22 pm

#2 T Rex and the dinosaur clique on 06.19.22 at 2:40 pm
What general location are you and what is your current car?
I’d be interested.

#11 Ustabe on 06.19.22 at 3:27 pm

Eagle Plains.

The showers are unique…I have seen grotty and untended before but the showers at Eagle Plains would have you swear off bathing altogether.

As we drove up the radiator collected a number of bugs and unknown to us at the time the birds at Eagle Plains have habituated to pecking away at the rad to remove and eat the bugs. Trouble is they bend all the fins and even a rad comb wouldn’t quite put it back to 100% so new rad. Now we know, I wondered why a lot of vehicles had screening over the grills or slipped cardboard between the rad and front grill/fascia.

We are going back this year, end of August, first bit of September. For a number of reasons. At my age I might not be able in years to come so get it done. 2) I’d love for my wife to experience Northern Lights up close. 3) Very slim, ultra slim chance we get stopped on the Dempster on the way down while the band moves their reindeer herd from the northern range down south for winter.

Caribou when they are wild, reindeer when they are managed, same animal. It apparently takes over 2 hours for the full herd to cross. I’d give up a testicle to be stuck for that.

#12 THE DANDADA on 06.19.22 at 3:28 pm

SHAME ON YOU GARTH!!

You should be riding a bike to get around like BIDEN.

For gosh sakes set an example already.

RIDIN WITH BIDEN 2024………. LET’S GO!!!

#13 the Jaguar on 06.19.22 at 3:31 pm

I’m going to guess Lexus or high end Acura. Not an SUV. Colour – Black.

In my heart I feel it might be a Jaguar, but I can’t say it out loud.

That would be worlds colliding.

#14 It is different in Victoria on 06.19.22 at 3:32 pm

Keep hearing it again and again that it is different in Victoria. Property will NEVER go down because EVERYONE in the world wants to live here. People have really swallowed the cool aid on the Island.

I think the average family income here is something like $75,000 a year. The price of homes just don’t justify it.

#15 Damifino on 06.19.22 at 3:42 pm

#2 T Rex and the dinosaur clique

Turns out there are plenty of cars available.
You just need to not want two things
1. An electric car (the wait lists are epic)
2. An automatic transmission

——————————-

I meet both criteria. I couldn’t care less about an electric car, and I can drive a stick-shift, no problem.

Well… there’s one little problem. My wife can’t drive a standard and we’re down to sharing a single vehicle.

Also, imagine how little a standard transmission vehicle will fetch as a trade-in in about 4 years time.

#16 UCC on 06.19.22 at 3:42 pm

It was a sweet ride. But time to trade. A couple of dings and four years on the road. I’m a car guy, but there’s no way I’m messing with a vehicle containing 1,800 chips. When the ashtray’s full, baby, make a deal.

And here I thought you where a lease guy…..

#17 Søren Angst on 06.19.22 at 3:44 pm

Gas cuts to Germany.

GREEN PARTY Robert Habeck, Minister for Economic Affairs and Climate Action (and Vice-Chancellor) says they will be

firing up their COAL plants.

or in Deutsch Speak:

“To reduce gas consumption it is necessary to use less of it to generate electricity. Instead, coal-fired power plants will have to be used more”

https://www.dw.com/en/germany-to-fire-up-coal-plants-as-russia-turns-down-the-gas/a-62182321

——————-

Holier-than-thou not so holy.

#18 TurnerNation on 06.19.22 at 3:50 pm

P. Pilot: good sir. bud. Let us know when you’ve punched your card for #5, #6.
We desperately need a long term study group. Better late then never eh.
Thank you for donating your body to science.


What oh what do our global rulers have in store for us. Just look what these ‘Consp Theorists’ are saying.
I saw these links quotes elsewhere, here they are:
This is NOT meant to be “over” — not till 2030. Buckle up. By Q2 2020 I’d already dubbed it the “New System”.

The International Institute for Middle East and Balkan Studies:

https://www.ifimes.org/en/researches/2022-ukraine-is-a-new-and-different-world-order-being-created/5021
“It is important to emphasize that this is not a traditional war, nor a conflict between two states over disputed territory, nor a pre-election propaganda, but a war of an entirely different kind. This war is a first step on the path to establishment of a new order in international relations, that is a new division of spheres of influence at the global level.”
“The developments in Ukraine represent the beginning of the end of the existing world order…Put succinctly, the current developments are a prelude to the emergence of a new international order.”

–Former EU diplomat Alastair Crooke:

https://aviagemdosargonautas-net.translate.goog/2022/04/17/a-guerra-na-ucrania-a-confiscacao-das-reservas-russas-converte-se-num-boomerang-empurrando-o-mundo-para-um-novo-sistema-monetario-internacional-por-alastair-crooke/?_x_tr_sl=pt&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc
“”The current military operation in Ukraine will, in due course, be relegated to the status of little more than a footnote in global history, although the all-out financial war that has erupted in Russia will be instrumental in shaping the coming new world order.”

#19 T. on 06.19.22 at 4:03 pm

Toronto could face wave of condo project cancellations as costs rise

https://www.theglobeandmail.com/business/article-toronto-could-face-wave-of-condo-project-cancellations-as-costs-rise/

#20 PeterfromCalgary on 06.19.22 at 4:18 pm

The crazy thing is money is still free. Interest rates are still below inflation. Yet they are too high to support house prices.

#21 Quintilian on 06.19.22 at 4:25 pm

Garth, you have outdone yourself.

Your assessment is so impermeable that even Honest Realtor, Beth et all won’t try to rebuttal this one.
Maybe, just maybe, the nail salon girl from Kelowna with a 700K mortgage on the studio condo might take a run at you.
Garth, you have outdone yourself.
Your assessment is so impermeable that even Honest Realtor, Beth et all won’t try to rebuttal this one.

Maybe, just maybe, the nail salon girl from Kelowna with a 700K mortgage on the studio condo might take a run at you.

Also, Happy Father’s Day to all the curmudgeons.

#22 crowdedelevatorfartz on 06.19.22 at 4:25 pm

@#11 Ustabe
“Caribou when they are wild, reindeer when they are managed, same animal. It apparently takes over 2 hours for the full herd to cross. ”

+++
We went up in late August.
A good time to go.
The frost is killing off the blackflies and skeeters.
The campgrounds at the Arctic Circle NWT are empty so lots of firewood.
The Perseides meteor shower AND the northern Lights were a bonus.
We missed the herd migration by a week or so.
In the mid 1990’s it could take up to two DAYS for the herd to cross the highway.

#23 Quintilian on 06.19.22 at 4:27 pm

OOPS

#24 earthboundmisfit on 06.19.22 at 4:28 pm

Ordered a new Forester late February. Delivery December … maybe. Sucks.

#25 Pbrasseur on 06.19.22 at 4:31 pm

I’m interested in buying a property in Florida, so yeah please let us know! The US RE market is already tanking but still has a long way to go to hit bottom.

I would have liked to do it in 2008 but back then I wasn’t prepared nor ready.

This time is different, very.

#26 BC Renovator on 06.19.22 at 4:35 pm

Garth, Uranium? Yay or Nay? Thx

#27 Work and Tumble on 06.19.22 at 4:56 pm

I think Garth would drive a Mercedes Benz wagon E-class? best MB on the road understated ride.

#28 NOSTRADAMUS on 06.19.22 at 5:05 pm

NEEDLED!
For speculators it looks like the “Run for the roses” final 12 year bull market run is finished. On reviewing the video tapes the race stewards (bankers) have disqualified the two favorites, Housing Boy and Stock Darling. Apparently they where needled with too much stimulus (free money and zero interest rates,) It looks like the bankers are going to put these can’t lose winners down.
New topic. It will be a dark scary time when renters are crowing about how smart they are over how much they could have lost had they purchased at the peak of the housing bubble. They will be correct, but many will miss the bottom again (cycles) and lament a few years later how they cannot afford to purchase a house. Big wheels keep on a turning. The Greybeards have seen it all before.
New topic. Bent realtors are now pricing their listings far below the comparable sales. The intent being to bait the final few FOMO buyers to bid $100,000. plus over asking on supposedly bargain priced homes. Mmm.
New topic. In every real office, top real estate executives have had a ” Come To Jesus” meeting. Apparently the top dogs are trying to high school it out on how to cut costs in order to return to a positive cash flow situation. It would appear revenues have taken a big hit and their fake growth model is falling apart. Steady lads hold the line.

#29 Michael in-north-york on 06.19.22 at 5:24 pm

#118 The Regulator on 06.19.22 at 2:52 pm

# 114 – michael in north york : you need to work on your comebacks, dawg. Arf arf.
===

Nah .. good enough for you.

#30 tbone on 06.19.22 at 5:27 pm

Having a standard transmission is a good deterrent to having your car stolen or jacked , as the perps cant drive stick .

#31 Johnny Debt on 06.19.22 at 5:27 pm

$1,130,060 Canadian dollarettes?

For Whitby?

Downwind from Pickering Nuclear ever aging hardware and who knows what kind of Heq levels? And who cares anyway when Heq limits can be changed at will until…

Any who…as I was saying…$1,130,060…for Whitby?

I’d rather forgive the $8,350,000 USD awarded to me than have 10 of these…in Whitby for free.

Even you have to admit it, I’d get way more value doing the first than owning 10 detacheds in…Whitby!

How much is a detached in Whitby REALLY worth, even in 2022 dollars? $269,000? $279,000?

Imagine, waking up on a Sunday and realizing you’re cutting semi-irradiated grass…in Whitby. OUCH.

#32 Don Guillermo on 06.19.22 at 5:28 pm

#22 crowdedelevatorfartz on 06.19.22 at 4:25 pm
@#11 Ustabe
“Caribou when they are wild, reindeer when they are managed, same animal. It apparently takes over 2 hours for the full herd to cross. ”

+++
We went up in late August.
A good time to go.
The frost is killing off the blackflies and skeeters.
The campgrounds at the Arctic Circle NWT are empty so lots of firewood.
The Perseides meteor shower AND the northern Lights were a bonus.
We missed the herd migration by a week or so.
In the mid 1990’s it could take up to two DAYS for the herd to cross the highway.
@@@@@@@@
End of August is absolutely the best time to drive the Dempster. Tombstone Park colours are beautiful! Love the Yukon.

#33 Arcticfox on 06.19.22 at 5:47 pm

Following the markets for many decades now and having a strong math background..this really made me sit up !
https://m.youtube.com/watch?v=I27xw8Bf9fE

#34 Mr Happy on 06.19.22 at 5:51 pm

“We’re not there quite yet. I’ll let you know.”

Locked and loaded….just say the word…

#35 Grunt on 06.19.22 at 5:57 pm

Multiple crypto lawsuits stateside.

#36 Linda on 06.19.22 at 5:57 pm

#2 ‘T Rex’ – our dealer has been hounding my partner to sell our car back to them. Due to the crazy supply chain issues we’d likely get what we paid for it in 2016! Interesting that your dealer had a bunch of new manual cars for sale. As it happens, we both of us know how to drive manual vehicles so if we did decide to exchange our 6 year old vehicle for something new our choices may be greater than we thought.

#37 Don Guillermo on 06.19.22 at 6:11 pm

https://www.express.co.uk/sport/f1-autosport/1627630/Sebastian-Vettel-F1-news-protest-climate-change-Sonya-Savage

Millenial Vettel could be the Clown Prince of the woke cult.
F1 cars can consume 110 Kg of fuel per race. Vettel and his cars are jetted across oceans to events. Aramco is a key sponsor of his. Amazing hypocrite!

#38 Mike on 06.19.22 at 6:14 pm

I wait patiently for your analysis and insight
to when we’re there

#39 Phylis on 06.19.22 at 6:23 pm

I do remember the comment of the CB saying they would allow inflation to run hot. I wonder if they knew how hot it was going to get.
Stan, Stan we know you’re here, time for you to shine, this is your wheelhouse.

#40 Canuck on 06.19.22 at 6:26 pm

DELETED (Ageism)

#41 Shirl Clarts on 06.19.22 at 6:28 pm

#8 TurnerNation on 06.19.22 at 3:05 pm

^^^^^^^^^^^
You believe in “you will own nothing and be happy” theory and you read rebel news? That about sums you up (2+2).

#42 Phylis on 06.19.22 at 6:46 pm

Oh, and what’s holding up the chips? At first we heard it was cancelled orders, a shift to pandemic endeavours such as graphic cards and home quarantine products. Why so slow to rebalance? China lockdowns? I thought chip plants were mostly automated. Supply wasn’t shutdown, just shifted, wasn’t it? This is stinky.

#43 Ed on 06.19.22 at 6:49 pm

Funny…I wanted a manual tranny (can I still say that?) in my Rubicon but there are none to be found…so had to settle for the automatic.

#44 Slim on 06.19.22 at 6:51 pm

Speaking of waiting lists. A family member ordered a set of Michelin Cross Climate tires last November. They finally arrived a few weeks ago.

#45 T Rex and the dinosaur clique on 06.19.22 at 6:54 pm

RE: #15 Damifino on 06.19.22 at 3:42 pm

Yeah I worry about that.

I have four cars, two manual and two automatic.

I am the only person in my household who can drive the manuals.

I am also the only person I know, other than my one gear head buddy, who can drive them.

One of them is very old (a 1978, still on the road and driving fine). The other is a fairly recent 2016.

The local VW dealer here where I am literally has 11 new cars in stock, that you can go in and buy today.

They are ALL manual. If you want an automatic VW ANYTHING, you have to order it. And then you wait…….

I am told it is a long wait.

If you want an electric VW, forget it. Just don’t even ask. The wait list is similar to waiting for an East German Trabant back in the old GDR days. It is like years…..

But yeah, if you are OK with a 5spd or 6spd golf or jetta, and you want a car like, right now, they have 11 of them. Just sitting there. No takers. Not even any one going for a test drive (no one knows how to, like, even make them move…..)

#46 Gulf Breeze on 06.19.22 at 6:58 pm

I am leaving BC. Hard decision but prepared my husband last summer. Told him the heat dome that killed 600 people made me super anxious, plus potential for forest fire.

Anyway, we lost our family doctor last week and not a hope in Hell of finding another one. It’s related to house prices. Nobody younger can afford to buy a place and there’s nothing to rent.

So, not a place I want I want to age in. Am thinking of Calgary. Does anybody here know of anywhere that has is livable. Is Calgary a good idea??

#47 Sarah on 06.19.22 at 6:59 pm

According to AutoTrader, my 2015 Honda Fit is worth over $17,000. Even at $2/L, you’ll get 700km on the highway for $70. Long live the affordable subcompact with better fuel economy than most hybrid SUVs!

#48 Elon Fanboy on 06.19.22 at 7:01 pm

Got my custom ordered F150 showing up any day. The dealer basically offered me what I paid for my trade 2 years (and 70,000km) ago. Used car prices are nuts!

#49 T Rex and the dinosaur clique on 06.19.22 at 7:03 pm

The inflation genie is firmly out of the lamp.

I love the Liberals’ new way of “fighting” inflation….”we’ll just find more money, and give it to people, for free! As long as we give people enough free money, they will be able to afford anything they want, and then everything will be fine!”

Yeah, about that.

Cuba had a finance minister who tried that, what was his name now, Che something?

The major railways are going on strike. Workers can’t afford to pay for stuff anymore. Too much inflation. They want wage hikes (and they’ll get them).

Truckers, same thing. Basically every blue collar worker is now being financially crushed. And when you crush the blues, you get labour unrest…which leads to strikes, which leads to more inflation.

Yeah this is like a big massive dumpster fire now. There is no putting this out. Raising rates will just add to the mess. Then people who can’t afford groceries anymore will also lose their houses.

There is no easy way out of what is about to happen to all of us. Things are going to get really bad.

All the spare parts are coming together for what looks like a pretty epic economic downturn.

#50 Reality Check on 06.19.22 at 7:13 pm

#14 It is different in Victoria
I think the average family income here is something like $75,000 a year. The price of homes just don’t justify it.
———————
Blame it on all the rich retirees from other parts of Canada.
But, Lots more listings and house not selling in 2 hours for cash and 12 offers. Been to a few open houses where we were the only people – this contrasts to having to line up to get in 6 months ago.

Will this all translate into meaningfully lower prices – I doubt it. There are no end of Canadians that want to pay 1.5 milllion for a basket case bungalow in a city were 18 C is a warm June day, there are only 3 months of actual shirt sleeve weather and you cannot go downtown without being screamed at, physically accosted or having your car vandalized.

#51 Voice Of Reason on 06.19.22 at 7:40 pm

Garth buys a car? What happened to leasing / renting items that depreciate?

Retained value north of 80% changes a few things. – Garth

#52 Millennial Surrealist on 06.19.22 at 7:44 pm

Waiting 20 years… any day now!

#53 pimp my ride on 06.19.22 at 7:49 pm

does a new driver come with the new ride?..or are you keeping the old guy on the payroll?..and I ‘don’t mean Ryan..

#54 Nonplused on 06.19.22 at 8:12 pm

#2 T Rex and the dinosaur clique on 06.19.22 at 2:40 pm

Turns out there are plenty of cars available.

You just need to not want two things

1. An electric car (the wait lists are epic)

2. An automatic transmission

————————————–

‘Tis a tiny part of the problem. If the standard transmission suddenly found a wave of new fans (who could drive them) they would all be gone in a day.

But woe unto those who drive German cars. I think I don’t have to explain this but in addition to trouble sourcing German cars, assume German car parts will also be largely unavailable shortly. The German car manufacturing industry runs on natural gas. And Trudeau has decided that Russia can’t have their gas compressors back. So Nord Stream 1 is going partially offline, along with the other out of service pipelines.

One good thing is that we now get a look in Europe at what the “green” economy looks like. It looks a lot like poverty.

#55 Gen Z on 06.19.22 at 8:16 pm

I’d drive a stick shift just fine but then I can’t text.

#56 Nonplused on 06.19.22 at 8:22 pm

#30 tbone on 06.19.22 at 5:27 pm
Having a standard transmission is a good deterrent to having your car stolen or jacked , as the perps cant drive stick .

——————————–

These days all they want is the cat and no car, no matter how old, is safe.

#57 crowdedelevatorfartz on 06.19.22 at 9:18 pm

@#51 Voice of Reason
“Garth buys a car? What happened to leasing / renting items that depreciate?”
+++
I checked with a dealership today.
My 8 year old truck with low mileage and in excellent condition…..
Dealership offered me 6k less than what I paid for it 8 years ago….
Tempting.
But I like the idea of driving it for at least another 10-15 years with no payments.

#58 Cars on 06.19.22 at 9:43 pm

#45 T Rex and the dinosaur clique

Any car but VW product.

This company sold our breathing air with an incredible diesel lie and cheat.

NO FORGIVENESS!

DO NOT BUY A VW PRODUCT.
NOT VW.
NOT AUDI.
NOT PORSCHE.
NOT LAMBO, SKODA, BENTLEY.
NOT ANY OF THEIR ELECTRICS either.

Don’t even get me started on their below-average reliability ratings, even in motherland Germany they rate below average at 150 problems per 100 vehicles range.

#47 Sarah

100% spot on.

For the longest time Mazda had the best fleet wide fuel economy on all their cars sold. Why does this matter? NO HYBRID Mazdas in this result. NO ELECTRIC! Just 4 cylinder engines only, and very efficient with that SkyActive and compression ignition of gasoline. There are more achievements that continue to improve ICE and you note this well.

While we’re talking about this – why are cars getting so heavy? Look a decade or two back and you’ll see 1000lbs lighter cars. You think 1000lbs in your trunk at all times has a efficiency cost? Give me a 2000lbs car – you know it is possible. How efficient would that be?

Funny, no one seems to count the manufacture cost of all those hybrid components to along with the complexity of those dual-power train systems. Along with the weight.

#59 T Rex and the dinosaur clique on 06.19.22 at 9:43 pm

RE: #54 Nonplused on 06.19.22 at 8:12 pm

“But woe unto those who drive German cars. I think I don’t have to explain this but in addition to trouble sourcing German cars, assume German car parts will also be largely unavailable shortly.”

Not my experience.

Been driving German tin since I was in high school (which was a long, long, long time ago)

VW builds cars all over the world.

Cheapest parts are the ones from Brazil, followed by Mexico.

If you wanna buy parts for your VW from Germany, better have a lot of money. That is the absolute most expensive part you’ll ever buy. In Euros too.

I get all my parts from a discounter, who sources them direct from Brazil. Almost gives them away to me. Super cheap.

Never, ever buy VW parts from Germany. You will pay at least 100% more, and often 200 or 300% more, than the same stuff from Brazil.

#60 T Rex and the dinosaur clique on 06.19.22 at 9:47 pm

RE: #54 Nonplused on 06.19.22 at 8:12 pm

RE: “One good thing is that we now get a look in Europe at what the “green” economy looks like. It looks a lot like poverty.”

I was hopin’ that one day some first world country would be forced to turn off the taps, so that everyone else could have a look at what the green revolution actually feels like.

All those batteries running everything, running on electricity that they get from windmills and solar farms.

Will it actually work?

Or will Europe experience a great depression caused by an energy crisis? With natural gas so expensive people can’t afford to use it for anything.

Will be interesting to see if the green energy folks step up and provide that cheap, renewable power we’ve been told is so easy to come by.

#61 Simple pheasant on 06.19.22 at 9:55 pm

Front row seat in kelowna to this. For the last twenty or so years the rich, and the payment people have been almost indistinguishable. I have looked poor. I wonder what reality will look like soon? Will the faux rich start glowing in the dark? What will become of all the assets they appear to have? It’s all very interesting. We have been evicted three times in 18 months. All due to sale of the house we were living in. Two of the land gods got impatient and committed fraud so we took them to the BC RTB and cleaned them out. That brought us in 35,500$ in cash from the two judgements. Unfortunately it has caused us incredible suffering in the mean time. We both have full time jobs and we’re born in kelowna in the seventies. There is no where for us to land in this town anymore. All we do is work, and try to find homes to rent. Hopefully this Realestate as a get rich quick scheme thing goes away for a few years. Society is falling apart because the youth cannot afford to reproduce. What is the end result of all of this? Do the rich take turns changing each others motor oil? Do they all work the restaurants in shifts so they have somewhere to blow their money? It’s going to hit home sooner or later because no one doing those sort of jobs can survive here anymore. God bless the rich! We love you.

#62 Doing my Part on 06.19.22 at 10:01 pm

Bitcoin, are you out yet?
Sell while you can salvage what you have left, going to zero.
Store of value, haha…

#63 Commodore Amiga on 06.19.22 at 10:16 pm

#62 Doing my Part

Bitcoin, are you out yet?
Sell while you can salvage what you have left, going to zero.
Store of value, haha…

DUDE! I compiled and rendered stuff on my Commodore Amiga back in 1989. It took forever to “mine” these images and get that unique data output.

Why isn’t that old ancient computing/calculating/rendering worth anything today?

But somehow the work done by some computer 7 years ago is worth anything today?

Fascinating!

#64 It is different in Victoria on 06.19.22 at 10:17 pm

#50 Reality Check.

People just don’t look happy here. We have lived many places and have always found Victoria people rather glum – especially now.

I was downtown and homeless man spit on my windshield. Downtown is a cess pool. Lived in Paris, London and downtown Toronto and never seen the homeless like this.

Also lost our family doctor. There are none and it has been like this for years now it is worse. Also yesterday I was wearing a winter jacket. The endless grey is a killer.

#65 Yukon Elvis on 06.19.22 at 10:25 pm

My car was built in Ingersoll Ontario in 2001. 129,000 km and still looks new. Little red convertible, garage kept. Religiously maintained. So far it has consumed one oxygen sensor, one brake light, disc brake pads, some tires, and I think 3 batteries. I smile every time I look at it.

#66 Sail Away on 06.19.22 at 10:31 pm

Brother IHCTD9: Where art thou?

#67 Dogold Silverpanda on 06.19.22 at 11:33 pm

Whoever bought in February 2022 losing mad money. 400,000 lost in appraisal 50 miles from downtown Toronto.

#68 crowdedelevatorfartz on 06.19.22 at 11:51 pm

@#61 Peasant
” There is no where for us to land in this town anymore. All we do is work, and try to find homes to rent.”
+++
Sounds like you two have your shite together.
The worm is turning.
Patience.
If this is anything remotely like the 1980’s
There will be smoking deals to be had for people with
Jobs.
No Debt.
Cash.

#69 mike from mtl on 06.19.22 at 11:56 pm

#64 It is different in Victoria on 06.19.22 at 10:17 pm

I was downtown and homeless man spit on my windshield. Downtown is a cess pool. Lived in Paris, London and downtown Toronto and never seen the homeless like this.

I don’t know what it is about you left coast dummies but you’re on a whole level of crazy. The sheer amount of bums and druggies that can effectivtly be dealt with by sinking them off coast.. uhh unique.

Get another frickin hobby than flipping RE to each other.

#70 Satori on 06.19.22 at 11:57 pm

#64 It is different in Victoria on 06.19.22 at 10:17 pm
#50 Reality Check.

People just don’t look happy here. We have lived many places and have always found Victoria people rather glum – especially now.

I was downtown and homeless man spit on my windshield. Downtown is a cess pool. Lived in Paris, London and downtown Toronto and never seen the homeless like this.

Also lost our family doctor. There are none and it has been like this for years now it is worse. Also yesterday I was wearing a winter jacket. The endless grey is a killer.
————————-
I was in Victoria recently, and always thought it was gorgeous… until you veer from the main path into the homeless areas. Every cute pocket of kitschy fun areas, two blocks away from there is more homeless depressing areas.

Victoria has a ton of pockets of sad areas. I personally would only once in a while visit as a tourist, but in no way live there. Vancouver is getting worse every year. Robson Street has an ever increasing homeless population. What to do, what to do? No one knows.

#71 GERMAN CARS RULE on 06.20.22 at 12:04 am

#58 Cars on 06.19.22 at 9:43 pm
#45 T Rex and the dinosaur clique

Any car but VW product.

This company sold our breathing air with an incredible diesel lie and cheat.

NO FORGIVENESS!

DO NOT BUY A VW PRODUCT.
————————————
PLEASE GIVE ME A BREAK, EVERY CAR HAS HAD RECALLS and Gone AGAINST RULES!! VW got hung because they were German.

Sorry Dude, German cars Rock and they always will!!

Low and Behold BC DOES NOT CHARGE TO CHECK OFF-GASING ANYMORE!!! SO your OLD ‘collectors’ Truck can pollute forever.

Get an education Dude!

#72 kommykim on 06.20.22 at 1:33 am

RE: So, there ya go, Mills and Zs. Anything can happen.

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

It’s hilarious to look at that multidecade interest rate chart, see how ridiculously low interest rates still are, yet people are having a conniption over a 75 basis point increase.

#73 yvr_lurker on 06.20.22 at 2:06 am

I checked with a dealership today.
CEW

My 8 year old truck with low mileage and in excellent condition…..
Dealership offered me 6k less than what I paid for it 8 years ago….
Tempting.
But I like the idea of driving it for at least another 10-15 years with no payments.
———–
Keep doing the regular maintenance without fail, and drive it for another 10+ years. I have always bought used cars with low mileage (<40-50K Km) and keep them for 10+ years afterwards…. much cheaper this way…. and cars now are meant to last if they are treated well…

#74 KNOW IT ALL on 06.20.22 at 3:18 am

Wheels up……

Biden style. Keep those training wheels on.

#75 Jane24 on 06.20.22 at 3:34 am

I had a third car that we didn’t drive that much, a Ford Transit and I sold it in January here in England for £1000 more than I brought it for 3 years ago. Score! That leaves me with a VW Touran for bigger groups and bigger stuff as a 7 seater and a Kia Soul for quick pops to the shops. Both are great cars even though the Kia cost a third of the VW price! Never a thing wrong with either over 3 years. Both highly recommended.

#76 calgaryPhantom on 06.20.22 at 4:38 am

Want to share first hand experience of apple’s supply chain issues.

ordered MacBook Pro (M1max) online in March and website give me pick up date of June 10. I aligned with my travel to Canada so I was happy I will be able to pick up on time before I leave.

1 week before my flight I get a message that unexpected delay and now delivery on 20 August.

#77 Garth vs. 45 on 06.20.22 at 5:37 am

Let’s guess the car that Garth bought.

Garth, What does the winner get?

My guess: Range Rover Sport

#78 Diamond Dog on 06.20.22 at 7:17 am

A couple things caught my eye this busy weekend, one from the former Fed chair Janet Yellen who said that high inflation is locked in for the rest of this year. Mentioning this because it support’s Friedman’s timeline of a 1.5 to 2 year lag between increases/decreases in the broad money supply and inflation/deflation, as well as the 12 to 18 month lag between m2 and inflation. Yellen says high inflation is here for the rest of the year:

https://www.bnnbloomberg.ca/yellen-says-elevated-us-inflation-locked-in-for-the-rest-of-2022-1.1781026

U.S. Fed governor Mester also came out and said that we won’t see U.S. inflation come down to 2% for at least 2 years (also in keeping with Friedman’s timeline):

https://www.reuters.com/markets/us/feds-mester-says-it-will-take-2-years-until-inflation-falls-2-target-2022-06-19/

Quick comment on Janet’s “confessional” of human error, it’s commendable to admit when you are wrong, but the reason she gave is not believable. I find it impossible to believe that Janet could run the Federal reserve for 4 years and not know the intimate relationship between the money supply and inflation.

To use supply/demand shocks as a reason to miss this during rapid increases in the money supply narrow and broad further leading to high inflation the way it’s played out, is to deeply question how she ever got to be chairman of the Federal Reserve. Her explanation runs smoke for Biden’s narrative (blame it on war and Putin) but doesn’t make sense otherwise because it’s not true. When one looks at her bio it would be good to remind, “no one can play dumb like Janet”:

https://en.wikipedia.org/wiki/Janet_Yellen

When we look at inflation numbers on the street, in housing inflation stats in rent, asset appreciation & maintenance, we are looking at high teens, a minimum of 17% inflation. Producer goods is 16.8% according to government. With food, it’s higher. Energy has gone up 60% or higher nationally yoy at the pumps, same with nat gas. CPI numbers are obviously cooked beyond housing.

Just the area of inflation with used cars is jarring, we can see it on Kijiji and lots everywhere. CPI inflation isn’t high single digits, more realistically it’s in the mid to high teens, likely high teens at this point.

In other words, CPI numbers are a misrepresentation of truth and comparisons on the street lay it plain. CPI numbers are still useful if their metrics haven’t been changed in a while (some have) as they give timeline comparisons to years and decades gone by but other than this, CPI numbers distort the growing spreads between true inflation and incomes that my best guess is widening over 10%. It’s not just these spreads we should be worried about, it’s the spreads between the Fed rate and the true rate of inflation or “real rate” as they say. When we get to spreads like that recessions aren’t just certain, they are severe and long lasting.

Where am I going with this, if we look at U.S. CPI rates in 2021 once more in the context of systemically under represented inflation:

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

… and look at the monthly rise in CPI inflation in 2021:
Feb 1.7%, March 2.6%, April 4.2%, May 5.0%, June 5.4%, July 5.4%, Aug 5.3 % Sept 5.4%, Oct 6.2% Nov 6.8%, Dec 7.0%…

And we take these numbers and double them because really, that’s what they are (current CPI of 8.6% is running more like 17%+) and look at the Fed response, even with accepted metrics, the Fed should have responded to CPI inflation running over 4% in April of 2021 with rate hikes then. If they would have been on time, we would have ended this madhouse of high inflation by year’s end. The everything bubble wouldn’t have been so extreme and we would have begun to see some relief.

But they didn’t, the Fed did the opposite. They kept stimulating, kept printing money, buying bonds, blowing bubbles all through 2021 and we can see it as easy as 30 year mortgage rate national averages:

https://fred.stlouisfed.org/series/MORTGAGE30US/

The question as a voter, taxpayer, investor etc. even us Canadians as our own CB follows the Fed 90% of the time is, who’s culpable for the Fed being so late to act to inflation? Does the Fed act autonomously, or is the Fed controlled by political parties and/or their leaders? Is it a blend? If the Fed is politicized and if so who has control, Reps or Dems?

Clearly when it comes to money in the current Senate and all through Biden’s administration, it’s Republicans. Within the Fed itself, its 3v3 appointments just this year (Republicans with majority vote prior, all Trump appointees) with Powell still having the deciding vote.

Just as interesting, the governor in charge of monetary policy is the VP of the Fed who is now Brainard (Dem), confirmed with a Senate vote of 52-43 on April 26th, nominated a full 5 months before. This is an obvious politicized vote and confirmation stall. Raskin, remember her, she was initially nominated and later axed, remember this? Lisa Cook was confirmed 52 – 48, this is not how things are supposed to work, these senate confirmations have been politicized.

Why did Biden extend Powell’s term… did he have much choice? Could he have gotten his own pick for chair past the senate? The financial reactions to the pandemic, to lessen it’s impact, the damage control, are we even there yet, point is, there is culpability here including the choices made at the Federal Reserve. Inflation is doing major damage and the Fed has barely begun to raise rates, it’s great that they are finally doing something but their inaction can’t be forgotten.

The longer term consequences to this thing relating to recession and credit, the bond markets, currencies later on, we are in the early innings of this thing. Point is, prosperity never reigns without integrity and truth. Some of it is there, its not easy to see but it’s there and yet, some of it is gone. We shouldn’t be surprised ultimately, if things turn ugly.

#79 Cars on 06.20.22 at 7:54 am

#71 GERMAN CARS RULE

The only thing German cars rule, is the below average reliability rankings and the myth of marketing.

As cars have become more complex with dual power trains and bunch of failing electronics reliability measures in problems per 100 vehicles continues to slip overall. Yet the Germans continue to slip the most, now all down in the 200 problems per 100 vehicle range. Audi even managed to get to 232 problems per 100 vehicles for 2022. Nicely done there Audi, the premium brand of sucky VW. Now you know why your realtor didn’t make the appointment and your house ain’t sold. Thank VW Group.

Very few old cars stay on the road. For you to highlight some handful (by % of vehicles or mileage used) of collectors trucks as justification as to why an international car manufacturer like VW straight up lied to consumers about their crap VW product is comical. For you to throw some education insult around reflects only on you.

If VW lied about such key features and metrics to consumers during Dieselgate, no wonder their crappy VW Group product reliability rank is no where to be found in their show rooms or sales brochures.

#77 Garth vs. 45

If Garth bought that heap of overpriced unreliability that is Range Rover, it would be a real disappointment.

He probably didn’t tell us the brand because we’d judge him. It is a fascinating thing actually. Buy a Mercedes and feel important…not because you really are, but because you’re behind a pointed star logo. Talk about lame…the association of brand to self image and overall human insecurity that marketing machine exploits to sell their junk.

I for example would be looking for Garth to buy a Toyota/Lexus product, or even Kia- among the most reliable and dependable products today funny enough. Can you imagine if Garth was seduced by the appearance and reliability of a 2022 Kia product? The peanut gallery here would faint!

#80 Congrats on your new KIA, Garth! on 06.20.22 at 8:04 am

Glad to hear you didn’t trade your old car in for a Harley Davidson, LOL!

(Apparently. you have to be at least a 75 year old Paleo to qualify for a Harley these days)

#81 crowdedelevatorfartz on 06.20.22 at 8:20 am

@#64 Victoria
“I was downtown and homeless man spit on my windshield. Downtown is a cess pool. Lived in Paris, London and downtown Toronto and never seen the homeless like this.”
++++

Vancouver is the same.
Thank your he/she/they mayor for falling all over themselves to champion every politically correct cause EXCEPT the laws of the land.
Their job is done only when it is total anarchy.
Time to show the mayor the door?

#82 crowdedelevatorfartz on 06.20.22 at 8:25 am

@#73 yvr
“I have always bought used cars with low mileage (<40-50K Km) and keep them for 10+ years.
+++
Oil changes, plugs, brakes , etc.
My truck is 8 years old and looks new other than a few door dents from inconsiderate a-holes in parking lots…
Had my last truck 20 years old when I sold it to a kid and I saw it a few years ago. 35+ years old….still chugging away.

#83 Dharma Bum on 06.20.22 at 8:51 am

#46 Gulf Breeze

Does anybody here know of anywhere that has is livable. Is Calgary a good idea??
——————————————————————————————————–

Red Deer, AB.

Best kept secret in the country.

Shhhhhhhhh…don’t tell anyone. I don’t wanna wreck the place.

If you need the “big city” for anything (i.e., high crime, diversity, wokeness, virtue signalling politicians, etc.) there’s always Calgary and Edmonton an hour and a half away in either direction.

Just far enough away to ignore, but close enough when you need a major airport.

Win-Win.

#84 Tony on 06.20.22 at 9:04 am

Corporate earnings will take a hit because the true or real inflation rate in America is about twice what the yearly wage increases are. 6 percent wage increases with the real inflation rate running at 12 percent or better. It’s even worse in Canada if inflation spikes above 7 percent because the average wage increase is only 3.3 percent a year. This means people will have less money to spend unless wages rise a lot in the future.

#85 Sail Away on 06.20.22 at 9:16 am

#77 Garth vs. 45 on 06.20.22 at 5:37 am

Let’s guess the car that Garth bought.

Garth, What does the winner get?

My guess: Range Rover Sport

———

Something like this?

https://www.craigslist.org/about/best/hou/6565526716.html

#86 Mattl on 06.20.22 at 9:17 am

Well ya, the economy is fueled by debt, driven by consumer spending. There was no scenario where by debt servicing could increases substantially and the economy would be unaffected. Been saying this for months and was mocked. Also on record that the centrals don’t have the guts to completely follow through with normalization of rates, they will back off. Also very predictable.

Key here is how dependent the economy, the consumer, and corporate is on free money. Last 6-10 years have been a big head fake, turns out the fundamentals are in fact not that good, or the economy wouldn’t require endless stimulus.

What comes next is corporate layoffs

#87 KNOW IT ALL on 06.20.22 at 9:23 am

Cluess Canadian government. They dont get that if you suck and blow at the sametime you get nowhere.

“Trudeau is shirking Canada’s inflation fight: Scotiabank”

https://www.bnnbloomberg.ca/trudeau-is-shirking-canada-s-inflation-fight-scotiabank-1.1781115

#88 Sail Away on 06.20.22 at 9:28 am

#83 Dharma Bum on 06.20.22 at 8:51 am
#46 Gulf Breeze

Does anybody here know of anywhere that has is livable. Is Calgary a good idea?

———

Red Deer, AB.

Best kept secret in the country.

Shhhhhhhhh…don’t tell anyone. I don’t wanna wreck the place.

If you need the “big city” for anything (i.e., high crime, diversity, wokeness, virtue signalling politicians, etc.) there’s always Calgary and Edmonton an hour and a half away in either direction.

Just far enough away to ignore, but close enough when you need a major airport.

Win-Win.

———

Yes! Another ‘big-city-adjacent’ place, allowing one to charge city consulting fees while offering better and more economical living. Even more important for some professions, accounting, for example: oil-sands-adjacent. Strategically avoid the cities and improve your odds of success

#89 jw on 06.20.22 at 9:29 am

did you do your trade through the dealer? They are still offering me a pittance on my 2016 car…

#90 crowdedelevatorfartz on 06.20.22 at 9:29 am

@#78 Diamond Dawg

It must be awesome when you monopolize office meetings.

#91 Johnny Debt on 06.20.22 at 9:33 am

What are you people smoking up there? I pretend to be a pirate for a living, but you are the ones pirating each other.

Four of the five most expensive cities on either side of the border are Canadian?

New York City, Mississauga, Hamilton…yeah, sure.

Can someone please explain to me why the amazing world renowned Whitby didn’t make the list by the way?

Weren’t semi-irradiated downwind from Pickering Nuclear homes there sell for $1.5M a few months back, now at a huge huge deal price of only $1.1M?

Land of the snow, full of snowflakes.

>>>
Data released by Canadian insurance provider PolicyAdvisor suggests that New York City, Mississauga, Ont., Vancouver, Hamilton, Ont., and Toronto are the most unaffordable places to live in either country.

https://kesq.com/news/2022/06/18/four-of-the-five-most-expensive-cities-on-either-side-of-the-border-are-canadian-study/

#92 Inflation and Something Else on 06.20.22 at 9:38 am

As noted by GT and others, people do not have room in their budgets to make allowance for inflation. In other words, if so many Canadians did not overextend themselves, they would not be so vulnerable to this increase in inflation.

Whose fault is that?

#93 Quintilian on 06.20.22 at 9:40 am

#78 Diamond Dog on 06.20.22 at 7:17 am
“I find it impossible to believe that Janet could run the Federal reserve for 4 years and not know the intimate relationship between the money supply and inflation.”

Even we irresponsible spendthrifts who squander our money on lattes, and complain on Reddit know housing is in a bubble largely because of artificially suppressed interest rates by Central Bankers, which she has been part of the cadre for a long time.

#94 Penny Henny on 06.20.22 at 9:44 am

#51 Voice Of Reason on 06.19.22 at 7:40 pm
Garth buys a car? What happened to leasing / renting items that depreciate?

Retained value north of 80% changes a few things. – Garth
/////////////////

I guess you knew that 4 years ago when you bought.

Actually I am fortunate enough not to worry about a car’s price. Or your opinion. – Garth

#95 Linda on 06.20.22 at 9:45 am

#42 ‘Phylis’ – I think the chip issue is due to not having enough of the necessary ingredients to manufacture them in the first place. Since apparently ‘everything’ is made in China, those prolonged shutdowns due to Covid haven’t helped matters any.

#47 ‘Sarah’ – LOL, our vehicle is a 2016 Honda Fit. As per online research, when/if one can find one for sale the ask averages around $18K. Despite the offers we don’t plan to sell. As other commenters have pointed out, why take on new debt if you don’t need to? Plus we like the vehicle, it suits our needs & the gas mileage is excellent. Our modus operandi is to buy, maintain & run that sucker until the cost of repairs exceeds the value of the vehicle, at which point we replace. Works for us!

#96 crowdedelevatorfartz on 06.20.22 at 9:50 am

@#86 K.I.A
“One of Canada’s largest commercial banks fired a broadside at Prime Minister Justin Trudeau’s government, warning that high levels of federal spending are hurting the fight against inflation.”

+++
It will be amusing to see if Trudeau’s stuttering and Uumm Ahhh’s get worse as the recession grabs the spendthrift Grift’s by the throat and choke off tax payer revenue as our interest payments on the $1.1 TRILLION dollar debt reach historic levels of financial pain.
30 cents of every tax dollar collected? 40? 50?
Time will tell.
Hopefully we will be standing at the bottom of the Debt Well staring up and wondering how we’re going to get out of this mess…….when…..it’s time for another election.

#97 MalignedMillenial on 06.20.22 at 9:52 am

Garth! Gotta do a post on places outside of Ontario. It’s not the full picture if we’re just talking Toronto suburbs as they only seem to reflect the easy money around the pandemic. If those other places (BC, QC) ain’t crashing it’s not quite the event you’re portraying it as.

#98 millmech on 06.20.22 at 10:01 am

#70 Satori
There is a plan to relocate some of the downtown eastside residents to your area of the province to assist them with coping with their disease.
The belief is that by removing them from the predatory people and situations of the DTES the sick will recover and be able to reintegrate back into society.
The government is at least trying to do something to alleviate the carnage that is destroying lives on a daily basis.

#99 tbone on 06.20.22 at 10:04 am

Drive what you can afford and that includes repairs if required. If you cant afford a german car , dont buy one.
Many other choices are available .

Lots of cars are leased anyway , so repairs are a non issue as they are typically within the warranty period.

#100 Lee on 06.20.22 at 10:10 am

There were zero Ks on the car.

#101 TalkingPie on 06.20.22 at 10:24 am

#72 kommykim on 06.20.22 at 1:33 am

It’s hilarious to look at that multidecade interest rate chart, see how ridiculously low interest rates still are, yet people are having a conniption over a 75 basis point increase.
********************************************

It’s hilarious, is it? You do understand the relationship between interest rates and house prices, right? If an average house was anywhere near the inflation-adjusted price it was in the 80s, people today wouldn’t be sweating over a three quarter point interest increase, either.

#102 schoolie on 06.20.22 at 10:26 am

Garth, rates are heading higher and that’s a fact but yet you insist a 7% GIC is out of the question? How so? A fiver can already be had for 4.5% I know you never miss a chance to kick the humble and unloved GIC square in its testes but I must say, anything guaranteed and already nearing 5% is quite tasty for those of us who KNOW cash is KING – at 6-7% they’ll be a no brainer (inflation be damned! And let’s not ignore it conveniently when we stroke ourselves for all our equity and divvy gains shall we?) I bet we see a 6-7% GIC by the end of 2023.

Just call me Mr. Tuna Sandwich! And hey, I’m no miser, I’ll spring for a change up every now and again – today it’s bologna on white bread with mustard and cheese. The extra bucks my lunch tastes furnish me with will all be directed into ever fattening GICs!

#103 Penny Henny on 06.20.22 at 10:50 am

#66 Sail Away on 06.19.22 at 10:31 pm
Brother IHCTD9: Where art thou?
/////////////////

He said he was going to return with a different name on the count of he is selling the tractor.

#104 baloney Sandwitch on 06.20.22 at 10:57 am

Garth obviously got a good deal for the used vehicle but my guess is he paid top dollar for the new one. I am not a car guy and don’t drive a lot – so happy with my 2009 Honda Civic – runs well and will probably last me another 3 years.
The stock market is presenting some good opportunities. However I think recession is imminent and stocks will go down more as the economy tanks and earnings come down. I say that because that inflation is unlikely to roll over until the end of the year and FED/BOC will keep on raising rates.

Wrong on both counts. – Garth

#105 T Rex and the dinosaur clique on 06.20.22 at 11:16 am

RE: #71 GERMAN CARS RULE on 06.20.22 at 12:04 am

#58 Cars on 06.19.22 at 9:43 pm
#45 T Rex and the dinosaur clique

Any car but VW product.

This company sold our breathing air with an incredible diesel lie and cheat.

NO FORGIVENESS!

DO NOT BUY A VW PRODUCT.

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

Dieselgate is actually incredibly interesting from the standpoint of what a corporation will do (and what they routinely do) to get around regulations.

Dieselgate involved some crafty German engineers figuring out how to take advantage of a little loophole in the engine management system rules.

The rule is that, at any time, the computer can turn off the emissions systems or otherwise modify the engine’s output of pollutants, if the engine is “at risk”.

This ensured that the computer systems wouldn’t knowingly damage an engine so as to keep all the emissions in check.

So VW just made it so that the computer turned off the emissions systems all the time, as the engine would be at risk, if the emissions systems were running, during the entire time the engine was being used to produce power.

So if someone was moving the steering wheel, or there was a body present in the front seat (which the air bag and seat belt sensors can determine), then emissions were turned off, to “save” the engine.

Technically it was in line with the regulations, though it was in reality a gross violation.

#106 Ponzius Pilatus on 06.20.22 at 11:24 am

#98 millmech on 06.20.22 at 10:01 am
#70 Satori
There is a plan to relocate some of the downtown eastside residents to your area of the province to assist them with coping with their disease.
The belief is that by removing them from the predatory people and situations of the DTES the sick will recover and be able to reintegrate back into society.
The government is at least trying to do something to alleviate the carnage that is destroying lives on a daily basis.
———————————
Good, makes sense Post.

#107 Penny Henny on 06.20.22 at 11:25 am

It is still possible to take advantage of a high trade in value even if you lease a car. Leasing gives you the OPTION to purchase the vehicle at the end of the lease for the residual value.
But if decide not to purchase and the car is worth more than the residual then there is nothing from stopping you shopping the car around to different dealers who may be willing (certainly true right now) to offer much more than residual, provided you are sticking to the same brand.

Double bonus is if you write off the car payments. You write off the full amount and then take the cash back at trade in time.

Been there, done that.

#108 GERMAN CARS RULE on 06.20.22 at 11:30 am

#79 Cars on 06.20.22 at 7:54 am
#71 GERMAN CARS RULE

Honda’s reputation for safety and reliability took a serious knock in the early 1990s when it was revealed that there was a major problem with the seat belts in many of its cars. Nearly four million Honda vehicles were recalled because their seat belts provided no protection.

Ford had the largest vehicle recall in automotive history. A staggering 21 million vehicles were built with a defect in the transmission that caused a car or truck put in “park” to slip into reverse. By the time the U.S. federal government recognized the defect, the National Highway Traffic Safety Administration had received more than 23,000 complaints and reports of 6,000 accidents and 1,710 injuries, with 98 injuries confirmed to be caused by the defect.

And here is the ‘special treatment’ kicker – After threatening to force a recall, the Department of Transportation reached a settlement with Ford that allowed the company to avoid a recall in exchange for sending its customers a warning sticker that could be placed prominently in the car’s interior. ???

Chev a division of General Motors, have paid out more than $500 million in settlements to burn victims because of a dual fuel tank defect on pickup trucks that caught fire. Sad, but true.

Another MASSIVE RECALL -Toyota brand suffered a serious blow in the 2000s when gas pedals on several of the company’s most popular car models (lexus) could become stuck in the down position, causing fatal runaway acceleration. They are still recovering from that recall.

Just to add a few more to your list of hated cars. I would rather drive a car that is safe and however the german’s did it, pure Genius!! They got the big hit because Americans have always hated the success of German/European cars. That is why Ford got a little slap on the wrist. They cost a little more, but jealousy gets you no where.

#109 Sail Away on 06.20.22 at 11:36 am

Wisdom from His Greatness, Elon Musk:

‘Unless it is stopped, the woke mind virus will destroy civilization and humanity will never reached Mars’

Speaking of… Victoria’s coffee shop (Bows and Arrows) with the bigoted job ad has shut down their Insta, Yelp is no longer accepting comments, and Reddit has thoroughly eviscerated the company.

Cool. Tolerance is so hard for some people.

#110 Capitalist on 06.20.22 at 11:40 am

Finally some pushback of the insanity on the radical left. We all expected the bleated out sermons of the WOKE to die off and the Adam Smith in us all to welcome the swinging pendulum back to normalcy.

Gerry Butts might have thought he was a “ genius” ( his words) by manipulating enough GTA seats into tightly held ethnic enclaves by a weaponizing of immigration, but those people will also see that they’ve been used in such a sordid way. The ROC won the popular vote in the last two elections, And it looks like a wave of fatigue has rolled over the Trudeau club. Thank God we still stand. True north, strong and free.

https://nationalpost.com/opinion/sean-speer-finally-some-pushback-against-the-out-of-touch-radical-left

#111 Faron on 06.20.22 at 11:48 am

#65 Yukon Elvis on 06.19.22 at 10:25 pm

So far it has consumed…

your basic humanity.

#112 Robert S. on 06.20.22 at 11:50 am

Did you get any of this money Garth…I think you did? You acted like you did. You of a sudden changed to promotion – it was weird. I’ll forever think you did.

“Canadian pastor says health officials offered church $50,000 to push vaccines.”

https://www.lifesitenews.com/news/canadian-pastor-says-health-officials-offered-church-50000-to-push-vaccines/?fbclid=IwAR1iZykgPhT0oOPACRn_T5gsruzjm6aAE10B9aygRlUNxHaviHIkrKG622M

#113 78 Diamond Dog - the condensed version on 06.20.22 at 11:50 am

I find it impossible to believe that Janet could run the Federal reserve for 4 years and not know the intimate relationship between the money supply and inflation……
In other words, CPI numbers are a misrepresentation of truth and comparisons on the street lay it plain…….
They kept stimulating, kept printing money, buying bonds, blowing bubbles all through 2021…………
If the Fed is politicized and if so who has control, Reps or Dems?………We shouldn’t be surprised ultimately, if things turn ugly.

#114 Faron on 06.20.22 at 11:53 am

Just a reminder that one of our blog dog finest whined his way out of following a reliable media outlet because of that outlet’s correct attribution of the killing of Shireen Abu Akleh to the Israeli Defense Forces. A fact that is ever more widely accepted based on ballistic and other forensic analysis.

Anyhow, I’m off to Bows and Arrows Coffee Rosters for a cuppa. A bit overpriced IMO, but they are good people. The kind that are hard to find in Loserville, BC.

#115 Faron on 06.20.22 at 11:55 am

#109 Sail Away on 06.20.22 at 11:36 am

Oooh, love how obsessed you are with this.

Also, Elon made a typo in that tweet, it’s surprising that you didn’t catch it. And bringing humans to Mars to form colonies is about as idiotic as it gets. But feel free to SEC!

#116 Faron on 06.20.22 at 11:59 am

Pretty sure these are Garth’s new wheels.

#117 kommykim on 06.20.22 at 12:19 pm

RE: #101 TalkingPie on 06.20.22 at 10:24 am
#72 kommykim on 06.20.22 at 1:33 am

It’s hilarious to look at that multidecade interest rate chart, see how ridiculously low interest rates still are, yet people are having a conniption over a 75 basis point increase.
********************************************

It’s hilarious, is it? You do understand the relationship between interest rates and house prices, right? If an average house was anywhere near the inflation-adjusted price it was in the 80s, people today wouldn’t be sweating over a three quarter point interest increase, either.

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

Yup. We are just barely up to where rates were in 2018 and people are losing their minds. What did people think? That rates would stay low forever? Hilarious!
I’ve followed this blog for over a decade now. Garth has been warning about this scenario since it’s inception. So yes, I understand the relationship between interest rates and house prices. Not a concern of mine.

#118 crowdedelevatorfartz on 06.20.22 at 12:32 pm

@#110 Capitalist

The longer and deeper this recession may be…..the lower Trudeau and the Grifts go in the polls……

#119 wallflower on 06.20.22 at 12:34 pm

#70 Satori on 06.19.22 at 11:57 pm
#64 It is different in Victoria on 06.19.22 at 10:17 pm
#50 Reality Check.

This homelessness is prevalent everywhere. Every city. Even the smallest of cities.
Growing rapidly.

Vancouver and Victoria happen to be the most year-round outdoor livable across Canada, hence their higher numbers.

#120 crowdedelevatorfartz on 06.20.22 at 12:43 pm

Juneteeth holiday in the States today.

A shame the appeasement monkeys in the Federal Govt didn’t create a holiday in June for Indigenous Day to coincide with the US Juneteenth holiday ( This holiday wins the award for the most insipid holiday “name “ever….whats next “Fri-Yay” ?).

June20 or 21st would have made much more sense from a business point of view (as if giving govt workers more paid time off makes any business sense…Passport renewal anyone?) as opposed to a second holiday in Sept for Reconciliation Day.

But the Liberal Grifts wouldn’t want to annoy their Quebec voters with two holidays in the same week in June.
St. Jean The Baptiste Day( Or Fete National as the ever hopeful Separatists call it) June 24th just a little too close for comfort for a scheming, vote pandering, Butz.

#121 Mattl on 06.20.22 at 12:45 pm

#61 Simple pheasant on 06.19.22 at 9:55 pm
Front row seat in kelowna to this. For the last twenty or so years the rich, and the payment people have been almost indistinguishable. I have looked poor. I wonder what reality will look like soon? Will the faux rich start glowing in the dark? What will become of all the assets they appear to have? It’s all very interesting. We have been evicted three times in 18 months. All due to sale of the house we were living in. Two of the land gods got impatient and committed fraud so we took them to the BC RTB and cleaned them out. That brought us in 35,500$ in cash from the two judgements. Unfortunately it has caused us incredible suffering in the mean time. We both have full time jobs and we’re born in kelowna in the seventies. There is no where for us to land in this town anymore. All we do is work, and try to find homes to rent. Hopefully this Realestate as a get rich quick scheme thing goes away for a few years. Society is falling apart because the youth cannot afford to reproduce. What is the end result of all of this? Do the rich take turns changing each others motor oil? Do they all work the restaurants in shifts so they have somewhere to blow their money? It’s going to hit home sooner or later because no one doing those sort of jobs can survive here anymore. God bless the rich! We love you.

————————————————————-

I don’t get this. You’ve been in Kelowna since the 70s. Homes here have always been boom and bust, and were mostly bust up until mid 2016. At that time you could buy a nearly new home in West Kelowna for 500K, an older home in Rutland for 200-300K, or an acreage with home and lake view for 200 per sqft. Sure it got crazy after that, but there was a massive window that would have allowed you to purchase a nice home for like 40K down and 2K a month in mortgage.

And yes renting in Kelowna is a disaster, except for the past few years, it has always been cheaper to own a home here. Which is why home ownership rates are the highest in the country.

Good news is, another decade long window is about to open up, I suspect we see nice homes in the mid 600’s fairly soon (down from mid 900s). Don’t miss another opportunity, if you do, it won’t be the fault of the “rich”, because most of this town is not that and 75% own homes.

#122 Cars on 06.20.22 at 12:53 pm

#108 GERMAN CARS RULE

Nice examples. None of that changes the woeful reliability issues of German cars.

I don’t know how many issues I’ve read about on BMW engines. Many of them flagship models, where they should be showcasing their best. German engineering…BMW engines shaking themselves apart, needing $10K maintenance on an M5.

Please, spare me the fakery.

German car makers have been lingering at the bottom of reliability ratings for decades.

German car makers have some of the worse resale values out there too

Toyota? Where did I say any car maker was perfect? But if you’re going to pick on one, it shouldn’t be Toyota.

Just recently a study of recalls came out, and it concluded that Toyota recalls immediately when needed to ensure product is reliable. Where as other car makers hide and wait for someone large like Toyota to recall so they can hide their recalls publicity under Toyota’s.

Also, that gas/brake thing – that was clearly an operator issue. Idiot drivers mixing up pedals. None of them apparently knew that you can nudge the shifter into N anytime to cut power from wheels. Silliness. I have to now deal with endless floor matt clips each time I want to vacuum one of my cars due to these idiots.

You see the news? You see all those suspect Middle East dudes and what they are driving? Can’t kill those darn Toyota Hilux pickups even in the harshest conditions with no regular dealer maintenance or parts. What does that tell you? You don’t see artillery mounted on German cars by these guys in the desert, do you? Wonder why not?

JUNK!

Look, I don’t want to go back and forth with you here on Garth’s blog. Let’s agree to disagree, with my view backed by decades of studies on ownership stats, failure rates, return to dealers, customer satisfaction and reliability surveys that all conclude all the same stuff….Germany Auto – BELOW AVERAGE RELIABILITY. Often, WAY BELOW.

Buy it new for a year or two if you really like that design that will nearly always age badly and dump it to a greater fool how wants to feel important before it becomes a giant liability.

#123 TOM COLLINS on 06.20.22 at 1:00 pm

There is a much more accurate measurement of inflation that does not go through the government stats fckery.
https://app.truflation.com/

#124 Don Guillermo on 06.20.22 at 1:39 pm

#108 GERMAN CARS RULE on 06.20.22 at 11:30 am
#79 Cars on 06.20.22 at 7:54 am
#71 GERMAN CARS RULE
&&&&&&&&&&&&
Totally agree. I have a 997.2 CS 6MT in Calgary and a 2019 Jetta 4cyl Auto in Sinaloa. I love them both for what they’re meant to be. Ying and Yang of German engineering.

My favorite Garth comment:

‘Actually I am fortunate enough not to worry about a car’s price. Or your opinion. – Garth”

#125 Don Guillermo on 06.20.22 at 1:59 pm

#122 Cars on 06.20.22 at 12:53 pm
+++++++++
“Indeed, well-regarded market research firm J.D. Power’s 2021 Vehicle Dependability Study ranks Porsche as the second-most reliable marque on the market, just behind Lexus and ahead of Kia and (shockingly) Toyota, a position they’ve held for many years not only in the US but Australia also.Jul 21, 2021”

#126 KNOW IT ALL on 06.20.22 at 2:03 pm

To #116 Faron on 06.20.22 at 11:59 am
Pretty sure these are Garth’s new wheels.
—————————

So Garthish…..

#127 tc-contra on 06.20.22 at 2:14 pm

#24 earthboundmisfit on 06.19.22 at 4:28 pm

Ordered a new Forester late February. Delivery December … maybe. Sucks.
====================================

Ordered a new Crosstrek EARLY February – just got it on Friday. Lease rate 0.99% (while inflation hovers close to 10%)

At the same time we sold older (2019 with <30k kms) Crosstrek at 95.7% of what we paid for!

Crazy times!

#128 crowdedelevatorfartz on 06.20.22 at 2:30 pm

@#114 Faronista
“Anyhow, I’m off to Bows and Arrows Coffee Rosters for a cuppa.”

+++
Applying for a job?

#129 the Jaguar on 06.20.22 at 2:35 pm

@#125 Don Guillermo on 06.20.22 at 1:59 pm
#122 Cars on 06.20.22 at 12:53 pm
+++++++++
“Indeed, well-regarded market research firm J.D. Power’s 2021 Vehicle Dependability Study ranks Porsche as the second-most reliable marque on the market, just behind Lexus and ahead of Kia and (shockingly) Toyota, a position they’ve held for many years not only in the US but Australia also.Jul 21, 2021”++++

I love my VW Golf with its manual transmission. It’s never let me down. Lots of people have offered to buy it, but “nicht zu verkaufen”.

#130 VW GOLF Owner on 06.20.22 at 3:43 pm

#129 the Jaguar on 06.20.22 at 2:35 pm

Was offered $200 trade in for my 2001 VW Golf with 250,000km Diesel. Black book value $2000… I was in no rush to sell so listed it high, thinking I would be bargained down so I put it up for $5600 on craigslist. Next morning 6 replies. SOLD for $5600, no questions asked.

Best car ever!!! Best resale value, safest accident ratings, steel construction. Had 2 major accidents, both of the other cars at fault and both other cars were destroyed. My VW had a hair line crack on the fender! One was a FedEx truck, the other a Toyota…when the guy came out to look at his Toyota, he said ‘omg, next car I get is a VW’ because his was totally smashed in (slide down ice on a hill I was going up, whole front end pushed in on the Toyota) my golf, a small feathering of cracks on the front bumper.

Would never buy anything else.
German cars all the way!!
Other cars, are just coffins on wheels.

#131 Cars on 06.20.22 at 3:52 pm

#125 Don Guillermo

Why do you pick and choose and go with 2021 when 2022 is here, ranking Porsche below Lexus and Toyota.

Porsche is actually often excluded from these J.D. lists because the overall sample size or percentage of units in the wild tends to be small. Normalizing this small sample size can produce wild and unreliable results, and for that reason the ranking has a large margin of error.

We could have a discussion about Porsche, but what it comes down to really is this: Porsche is an SUV company. They make and specialize in making premium SUVs, which are based on platforms developed for VW and Audi, repackaged and of course branded as Porsche and priced accordingly. Whatever else Porsche make is but a hobby afforded to them by the above noted SUVs unit sales.

While it is good that some of these brands are included – these often hardly address all the product categories that are relevant to the consumer. In fact, Porsche hardly address those categories.

Porsche compared to Toyota is like a crumb compared to a loaf. The units Porsche sells annually world wide is a rounding error for Toyota. To maintain such high quality, reliability and value at that volume is nothing short of astonishing achievement for Toyota.

Let’s check…

Ha ha ha…

301,915 Porsches in 2021 vs 10.5m Toyotas shipped – both numbers world wide. Funny.

And for the record, I’m not some Toyota fanatic. But I admire the value, reliability and dependability they deliver to their 10.5 million customers annually.

Time and time again German Auto Makers have proven and scale is their enemy. Look at Mercedes, Audi, BMW -the more down market they have pushed, the worse their product has become reliability and dependability wise. Don’t think consumer hasn’t noticed.

The German Logo/Brand ain’t worth it, if you can’t start it in the morning.

#132 Cars on 06.20.22 at 4:05 pm

#130 VW GOLF Owner on 06.20.22 at 3:43 pm
#129 the Jaguar on 06.20.22 at 2:35 pm

You guys are funny.

Praising a 21 year old car for safety.

In 2 decades safety has improved so much, that 2001 Golf IS the death trap and coffin you describe others with.

German cars…look, they aren’t total trash, and if it floats your boat and their marketing of being special works for you knock yourself out.

However, what is clear without any doubt, German car brands do not offer superior engineering, performance, reliability, dependability, resale value.

What they are clearly doing is pushing down market with their product diluting their brands and trying to grow units by selling ever lower end cars.

BMW – my goodness, what a nightmare those budget low end models are now for their brand image. What happened to their cars? YUK! That new grill, my goodness.
Mercedes – abysmal safety ratings and reliability. Weird designs that age so poorly. Diluting AMG brand to nonsense just to pull more money from people’s pockets who have no idea what AMG stood for, meant or delivered. Now they strap a turbo to a production line engine and it’s an AMG. $20K extra please. Funny.
Audi – don’t get me started. They have a few good looking cars, but for some reason…you say Audi, I think chick car. Of course Realtor as well, as observed on here.

What’s left? Mass produced not-at-all-special average cars from companies who have proven themselves ethically challenged.

VW Dieselgate is not enough for you? Go back a few decades, there are plenty of reasons to not be seen in VW products.

#133 Marc Perreault on 06.21.22 at 12:31 pm

Garth, I believe 2 consecutive quarters on negative GDP growth means we are in a recession, what is the definition for a Depression?