Was it only two days ago this pathetic blog brought you this big news from the econs at RBC?
“Price correction is over: property values are rising across the country.”
Yes, and this was the bank’s compelling evidence of a real estate renaissance, confirming realtor data published here in the last three months:
- “April home resales marked the strongest monthly advance almost three years. Prices rose in back-to-back for the first time since early 2022—with the vast majority of local markets contributing.
- Resurging demand and low inventories have put sellers back in the driver’s seat in most major markets, including Toronto, Vancouver, Calgary and Halifax.
- Rising prices could spur more sellers into action. We suspect many have been waiting out the correction until conditions turned in their favour. A rise in supply would help unlock more of the pent-up demand that built over the past year.
- It appears buyers are quickly regaining confidence in both markets now that the Bank of Canada has paused its aggressive rate hike campaign.
But wait. What if that pause ends? After hinting rates would stay on hold until a cut in December, could Tiff Macklem actually pivot and hike again? One week ago Mr. Market was pricing in two possible rate cuts over the next twelve months. Today, May 18th, that same market is giving a one-in-three chance of a rate hike in the first week of June, a 100% chance of an increase by September and zero odds of a cut anytime in 2023.
There is only one reason, and you can read it in the bullet points above. The housing market. Too hot. Too fast. Too high.
Canada 5-year bonds took a huge leap higher today, adding about 3%, with a surge to the 3.4% mark. A week ago the rate still had a 2-handle, and mortgages were available in the 4% range. But that all changes soon
“Bond yields are soaring,” says veteran lender Ron Butler. ”Get ready for fixed rate mortgages to rise next week. Get your applications in today, get your pre-approvals locked. Fixed rate mortgages going UP. By the end of next week all of the 4.65% 3-Yr Fixed and 4.39% 5-Yr Fixed are GONE.”
Mortgages will be back at 5% and beyond in a stunning reversal as the expectation of a rate cut – which many realtors have been ‘promising’ clients – is dashed.
“In my opinion the Bank of Canada should be more incrementally concerned about evidence that the housing market is overheating once more,” says Scotiabank economist Derek Holt. “The BoC was uncomfortable toward hiking just because of housing in the past while inflation was low, but today offers a dangerous and destabilizing combination of the two that requires a monetary policy response. In my personal opinion, there is a need to respond quickly without further delay and 25bps is just a down payment on possible hikes…”
Ironically, higher mortgage costs have been one of the biggest drivers of our sticky inflation (it stalled at 4.4% last month, virtually unchanged from the previous period). Interest costs on home loans have surged 28.5% year/year. It’s the tenth month running that mortgage costs have risen and the fourth straight month the increase has topped 20 per cent. That, plus swelling rental rates, have kept the cost-of-living number from dropping as much as central bankers wanted. Now, by pushing mortgages back above 5%, it becomes somewhat of a vicious circle.
Shelter costs alone make up about a third of the inflation formula, so it’s a double hit when the housing market reignites while existing homeowners are renewing. “Someone who took a three-year mortgage in mid-2020 will now be facing a huge increase in their monthly payments when they renew at 2023 mortgage rates, and that gets picked up in this CPI component,” according to CIBC economist Avery Shenfeld.
The big question: will another quarter-point CB increase throw cold water all over the current steamy and hormonal set of buyers? If mortgage rates travel from 4.6% to 5.2%, is the party over? Was this all really just a dead-cat bounce? Could the correction which careened off a low in January begin anew? And will a wave of mortgage renewals coming in 2024 and 2025 cause enough of a borrowing shock to geld the housing bulls?
And this (of course): what if the feds move again to soften the blow for renewers, as they’ve just done for the variable-rate crowd? If Ottawa tells the banks that extended-amortizations are okay at renewal time, instead of forcing people into higher payments as mortgages reset at 25 years, will the impact of higher rates be blunted again?
Dunno. Neither do you. But the game has changed.
About the picture: “Koda my 15 month Bouvier enjoys hiking along the shores of Georgian Bay,” writes Don. “He appreciates your columns but growls at the comment section. Thanks!”
126 comments ↓
No D*tch?
So Far ….so Gouda…
Elections have consequences.
Over 65% of Canadians have voted for more socialism. Did you think nothing would happen?
The Liberal/NDP coalition in Canada has had several negative effects on the economy, which have impacted various sectors and hindered economic growth.
One of the key concerns is the coalition’s tendency towards higher taxes and increased government spending.
This has placed a heavy burden on businesses and individuals, stifling investment and discouraging entrepreneurial activity.
Moreover, the coalition’s support for stricter regulations and policies has created an environment of uncertainty, deterring foreign investment and hindering competitiveness.
The coalition’s focus on social programs and redistribution of wealth has led to an expansion of the welfare state, resulting in increased government debt and deficits.
These economic policies have failed to stimulate sustainable growth and have hampered the potential for job creation and innovation.
As a result, Canada’s economy has suffered from sluggish growth, reduced productivity, and a weakened business environment.
Yogism #96: “Whenever I add a point to the discussion, it costs me”.
The only sure thing is that the BoC hasn’t got a clue either; the “pause” is no more credible than “rates will be low for a very long time”.
The only thing saving our behinds is that the Americans are in one of their feckless phases. But their tolerance for inflation is less than ours and, once the debt ceiling thing solves itself, look for the Fed to get back on its horse.
Then we might be hooped.
If going from 4.6% to 5.2% can end the party,
I just thought of a new tax they could implement. In horrible overcrowded places like toronto and sourrounding areas could add another 4 to 5% to the effective mortgage payments.
If the average person needs to earn 400k/year plus to afford to live in certain areas maybe it would encourage companies to decentralize their staff to move to cheaper locations like sudbury, windsor, even Elliott Lake.
The entire problem in the first place is people are forced to live in or near the horrible, overcrowded, shitty overpriced cities because the head offices are all in the downtown core.
Going to a realtor for financial advice is like going to the antique store for relationship advice. Makes no sense. Realtors just want sales and have little if any financial training and expertise.
Rock (mortgages) meets Hard Place (inflation).
Luv’n it….
You can only kick the can down the road for so long. Eventually you have to hit a brick wall. Timing? who knows?
But you said cuts were coming at the end of the year – no more hikes – inflation is under control.
I know things change, but surely you could have figured in the soaring cost of RE.
Makes me wonder what chance us normies have at any type of forward prediction/guidance.
I have consistently given you the market odds, not crystal-ball gazes. – Garth
vote for me then i will change?
this person is a lune check out her other sentences.
https://www.cbc.ca/news/canada/edmonton/ucp-candidate-will-not-sit-in-caucus-if-elected-after-comments-on-transgender-children-smith-1.6847252
If elected as an MLA, I will seek advice and counsel on how to best communicate my views and discuss these issues meaningfully moving forward.”
Alberta’s ethics commissioner says Danielle Smith, in her capacity as premier, contravened the Conflicts of Interest Act in her interactions with the minister of justice and attorney general in relation to criminal charges faced by Calgary street preacher Artur Pawlowski.
Alberta Ethics Commissioner Marguerite Trussler wrote in her report.
I observed a trend while watching potential buyers viewing the very few spring listings in my eastern GTA neighborhood of suburban McMansions. They exit their vehicles and proceed immediately towards the back yard to evaluate the potential of a basement apartment. The number of single family homes that have become multi-family homes is growing. Re-purposing these large single family homes built during the 90’s to 2010 was inevitable as both family size and purchasing power decline. These apartments can provide the necessary income to carry the cost of ownership, give the younger generation some independence, or provide an income stream in retirement. But, the parking issues, Oh boy!
Another headline today – ‘Bank of Canada sees financial stress rising among homebuyers’. Hardly a shocker, what I’m wondering is how anyone facing the cost of purchasing RE these days does so without a Valium cocktail or three. Plus a Tums chaser on a daily basis.
As for RE prices & their effect upon inflation, not a surprise there either. Rents have skyrocketed too, so am kind of expecting that pesky little inflation rate is going to stay higher than desired. All those price increases are going to have an impact despite any behind the scenes ‘adjustments’ to amortization time frames. I’m wondering, is there such a thing as ‘mortgage rage’? Will stressed out, over indebted clients suddenly start to wig out come renewal time? Maybe the banks can offer a soothing pre-renewal Valium cocktail before showing the client what their new payment might be……
It’s my opinion that, since past behaviour is a good indicator of future behaviour, the government will indeed step in to shore up over-leveraged mortgagees upon renewal. I hope I’m wrong, but I fear I’m right.
They already did it for the VRM holders, so it’s only fair and equitable that they extend the same privilege (or some new policy) to other mortgage holders. Heck, why not do it to people looking to get into home ownership, as well? Economic consequences aside (besides which, our finance minister is not an economist nor financial lady anyhow), why wouldn’t they? It’s good for buying votes.
At a time when distasteful pragmatism is perhaps warranted, rest assured the government will choose suicidal altruism.
We know that the Small Business were declared NON-Essential – as of March 2020. A digital currency and a UBI is my guess. Electronic serfdom.
The ONE thing our Rulers did not want us doing was sitting down for a meal or drink with friends.
So so many Rules were required to sit down and eat
– Wear mask until seated
– Plexiglass shields hanging in random places
– Contact tracing
– CERB, CEBA applied
– Curfews
– Hand sanitizer
– Early last call
– Capacity Limits
– Domestic passports.
Kanadians loved this control, all required in order to sit down and stuff food into your mouth. Prisoners had an easier times with this than us.
(If people meet in person and talk, socialize then the proaganda would have little effect??? )
https://www.cp24.com/news/we-re-just-hanging-on-rocky-start-to-summer-patio-season-puts-restaurants-on-edge-1.6402907
Published Wednesday, May 17, 2023 4:16PM EDT
Restaurants in Canada are being slammed with a daunting mix of soaring costs, staffing issues and capacity problems, making a slow start to the critical summer patio season a near crisis for some eateries across the country, industry experts say.
They say restaurants are struggling with the ballooning price of food, rent, utilities, labour and insurance, with many of the higher costs being absorbed for fear of losing customers if menu prices rise too quickly.
BoC increases rates….OSFI introduces 200 year amortization.
Maybe the Federal government will pay your down-payment….T2 is capable of anything
Looks like the inflation rate increase last month was not a nothingburger afterall.
Its now END GAME – sell sell sell
Captain Uppa on 05.18.23 at 3:26 pm:
Makes me wonder what chance us normies have at any type of forward prediction/guidance.
Much better chance than the experts.
Read, learn , act in your best interest.
ping pong
Volatility is always screaming something!!!
???
#6 – Exactly.
I feel a bit of fear of missing out on this one. Lol
Last best chance for the over-leveraged ‘home owers’ to get out with nuts still intact.
Let’s see stock jack with bank reports that vrm-ers likely need 20% cash to remain solvent.
Tick Tock.
#4	
BoC has no credibility, these are the cream of the crop, the best of the best in economics and they have no clue day to day, I wonder what happens when the magic eight ball breaks from over use.
The next stunning revelation will be the unheard of “wage price spiral” that has suddenly come out of nowhere despite all Federal workers getting double digit pay raises.
There are five more opportunities to raise rates and I bet at least three rate hikes are coming down the pipe.
The libs will allow Amortizations up to 40 years beginning in 2024 to save the VRM renewers from disaster.
I called it here first!
“Reflation” will be all the rage this fall and into 2024 and beyond. Those using their credit cards to get by and complaining about 5-6% mortgages makes no sense. At every level we’re running up the credit card and soon interest rates will reflect that. In 5-10 years interest rates will be higher than today,not lower.
I don’t understand why Tiff is still in his job. The man is incompetent. He really doesn’t understand that his words move markets and impact on other people’s lives. Flip flops are not acceptable from his position. Who does he think he is, a politician?
Yes of course they will kick the can down the primerose path, but wHat do you think will happen?
https://www.visualcapitalist.com/rise-of-americas-debt-ceiling/
The USA cannot bring inflation down, without jacking up rates……painted statistics notwithstanding!
Roof over your head.
Food on the table.
Gas to drive to work.
Not a lot to ask in a wealthy country like Canada?
——
Shelter +4.4% y/y Apr.
Food +8.3% y/y Apr.
Gasoline +6.3% m/m Apr.
2.762M Cdns below the Poverty Line.
6.91M Cdns experienced Food Insecurity.
Persons not in an Economic Family Median After-tax Income (take home pay + Gov Transfers):
– Seniors = $31,400
– Non-seniors = $39,600
—————–
For millions of Cdns I would imagine that roof, food and gas a daily struggle.
Inflation has NOT been tamed for these people and I suspect millions more Cdns than mentioned above.
Holt is correct.
Another rate increase is warranted. For the sake of the millions of disadvantaged Cdns just TRYING to MAKE ENDS MEET.
@#9 Captn Crunch
“Makes me wonder what chance us normies have at any type of forward prediction/guidance.”
+++
You aren’t a “normie”…
You’re “special”.
Comment #11 is accurate, many homes where I live (L.M.) which were once considered ‘moderately priced’ single family dwellings are quickly being turned into a multi-suite place once sold, even if the house is not designed for it. Seen instances of hallways built into garages and foundations being opened up to allow for ‘proper’ access to these suites. The cities and their bylaw dept can’t do anything about it as the BC NDP have essentially legislated these secondary suites into law and overrode the municipal councils. Sign of the times I guess…sigh.
Wow… IEP:
5.3% div March 10 + 5.8% dividend tomorrow, so over 11% realized in a couple months. Then +2% capital appreciation since Monday’s buy.
Just raining money!
Nothing better than a fight between titans. Little droplets of gold get scattered in all directions, so put on your gold mining hat and get to work.
Tomorrow might be another buy time if a good ex-div drop hits. Cowboy up!
At long last, the age of generational mortgages is here.
Banks will make record profits, people are forever chained to their corporate overlords, government can now increase retirement age to 75, thus reducing the massive OAS burden they were so worried about. Remember a time when people’s retirement plan was just death, because the average life span of a human is 60 years?
History often rhymes! You liveth, you worketh.
hmmm just seeing this on my noon news hour CTV. Tiff Macklem and BOC review sees problems ahead on Canada’s vulnerability to global financial markets, and the financial impacts of climate change. Perhaps the suspender snapping and Porsche driving fellows at Garth company should talk about investing in a environmentally responsible way.
I recently had a call with a staff member for my MP – who happens to be the Finance Minister – and berated the recent policy to extend amortizations.
My two biggest points:
1) You’ve created two sets of rules – one for owners, and a different set for those who want to be.
2) In the amortization extension request in the budget said nothing about Primary Residences; only that banks extend the amortizations… so, we’re now covering for speculators who made a bad bet.
Will my points be ingested and acted upon? Who knows… but, at least I’m trying to make my voice heard!
Off Topic – Cdn Consul Rome: Have a Nice Day and if Not …
The email below “greeted me” yesterday from Gov Canada – strangely, comforting.
—————–
Message to Canadians / Avis aux Canadiens CRM:0040011
[email protected]
Wed, May 17, 9:47 PM (1 day ago)
Dear Canadian,
You are receiving this email because you are registered with the Government of Canada’s Registration of Canadians Abroad service. Please share the following important information with other Canadian nationals in your area.
Heavy rains have led to severe flooding and landslides in northeastern regions of the country. The Emilia-Romagna Region, including in the cities of Bologna and Ravenna, is particularly affected by flooding. The floods have displaced hundreds of residents and caused extensive damage to houses and infrastructure. Emergency services have carried out rescue and evacuation operations across the region.
Some roads may be impassable or closed. Rail service in the region is currently interrupted and face further disruption.
If you are in the Emilia-Romagna Region or other affected areas:
——————
…it goes on with phone numbers, what to do, who to get help from, Facebook/Twitter contacts, critical risk maps, etc.
Basically, if in Emilia-Romagna:
Get the heck out.
My advice would be North of Rome, get the heck out.
RAI News main page for the acolytes of Death and Destruction:
https://www.rainews.it/
BTW, Parmigiano-Reggiano cheese, balsamic vinegar from Modena, Parma Ham to name a few of their products, are from Emilia-Romagna and it is the culinary heartland of Italy centered around Bologna (TRAVEL TIP: food, wine just as good in Ferrara and a LOT cheaper; also, it has a beautiful historic DT).
#30 Sail Away
You are being bribed SA and IEP buying compliance it seems to me.
Still, ‘gotta be nice to see that dividend money come raining down from the heavens your way.
All of the fiat currency masters are in the same boat, need to choose who wins and who loses.
Inflation isn’t going away, the money has already been printed. Now they are just trying to keep the velocity down.
It’s asset owners vs. paycheck slaves.
My guess is the asset owning class convinces the paycheck slaves to vote at least one more time to goose asset prices and let inflation and misery continue with each trip to the grocery store.
Note, most of the recent jobs gains are part time. How many of those are 2nd or 3rd jobs for paycheck slaves trying to keep their expected standard of living? At some point, many will just have to admit that they’re poor, and that they voted for it, and adjust their lifestyles accordingly.
A competent journalist at YUL uncovered some blind bidding situations were being stoked with fake offers which led buyers to overbid unnecessarily. Published yesterday in LaPresse and all media personalities saying *it’s what everybody has suspected for long time.* Local RE authorities *acting shocked*. Haven’t seen the story anywhere in ROC.
The plot thickens, and the banks will not be sucking this up long term:
Bank of Canada says mortgage payments could spike as much as 40 per cent
https://www.theglobeandmail.com/business/economy/article-bank-of-canada-mortgage-payments/
The BOC states most borrowers have not yet begun to feel the pain of higher rates, but this will change by 2026 when most renew their mortgages.
#35 Dolce Vita on 05.18.23 at 4:40 pm
#30 Sail Away
You are being bribed SA and IEP buying compliance it seems to me.
———
Lol. Yep. Carl is a master at weaponizing his resources.
Consider me an enthusiastic participant and student of the master.
I wonder if Canada’s situation has diverged slightly from that of the United States when it comes to interest rates. Due to a few bank failures, US banks have become significantly more conservative in their lending practices. Canadian banks, on the other hand, may be somewhat more cautious due to recession fears, but that probably doesn’t make them as conservative in terms of lending as banks facing potential failure.
If my assumptions are correct, lending practices are putting a stronger brake on the US economy than on Canada’s. Therefore, interest rates do not need to solely bear the burden of fighting inflation in the US, but they may still need to increase in Canada.
That lake looks familiar. I may have waterskied there on one ski, (gliding back and forth over the wake) in a previous life…Is it near Owen Sound? +++
Well, let’s just get the ugly accusation on the table.. Mr. Market knows jack sh_t, and the ‘Doomers’ just kicked in a field goal! But we’re big people, so we’ll try not to take pleasure in the misery of others, specifically:
-“..will a wave of mortgage renewals coming in 2024 and 2025 cause enough of a borrowing shock to geld the housing bulls? – GT ” – No, because real estate is now largely viewed as an investment, particularly by investors with multiple properties and many new immigrants who don’t participate in traditional financial instruments to increase their net worth and secure their future. Bay Street has failed to capture the hearts and minds of this demographic. But aggressive immigration numbers provide solutions to higher payments for investments property owners. ‘Peep density’ floats the boat, zoning restrictions be damned. Too bad the chicken hawk and CRA haven’t woken up to this reality.
The bigger question is will the rest of the herd finally get spooked when the next interest rate increase occurs, finally realizing all bets are off and it’s time to get out of debt while their heads are still above water. ?
What if BOC raises more than .25 in June? As the ScotiaBank economist said “..recall they surprised markets 3 of 8 decisions last year. They couldn’t care less about what markets and the street expect and I swear they wear that as a bit of a mischievous badge of honour…”.
Anybody want to bet ‘whack a mole’ might require .50%?
It’s also interesting that while job numbers are strong, some very big companies have instituted ‘hiring freezes’, as if in anticipation of recession and what might present as “Never let a good crisis go to waste’.
Downsizing staff and cutting bait on empty office leases attracts a lot less attention when recession comes knocking. Everything just might be going to plan….
As for lenders extending amortizations to put off the inevitable, ask yourself what happens when listings flood the market, buyers are back in the driver’s seat, values drop, and security positions erode. Ancient warrior credo? ‘Loyalty to shareholders, first, last, always.’ Dividend payments are not negotiable . No calling them ‘old meanies’. Recollect they bought you a little time when values bumped up. When the ship starts listing the smart crowd starts counting lifeboats….
#39 Sail Away
… and student of the master.
——————-
Towards that end, may I suggest:
https://www.youtube.com/watch?v=0D4V5awe-PA
As for Carl and IEP, this also a suggestion:
https://www.youtube.com/watch?v=UmQK_eDiY3A
Just sayin’. Titans and all.
With respect some of us called this months ago, and also called that the inflation print this week was not a nothingburger. Sure, focus on housing but food was up bigly as well.
This was all very predictable. Real rates in the negative / slightly positive was never going to tame inflation during full employment.
Whatever Tiff says, the smart money plans for the opposite to occur.
There will be no soft landing and roaring 20s already happened, we are at the “what comes after” phase.
Also, 100% chance Amorts move to 30/35 years. It is the only tool they have left to prop up RE as rates have a ways to go up still.
The rate hikes just made homes more expensive. The game has only changed to the extent that it’s harder to obtain real estate now than it has ever been.
In Canadian culture (and almost everywhere else on earth) buying a home is considered a rite of passage. That’s never going to change, regardless of whatever the interest rate is.
In an era where few have pensions to count on, a home is considered a store of wealth, as well as an investment. Generational wealth that can be passed down to children. It’s a bonus that you can live in it. The truth is most people do not want to be paying rent in old age.
So of course January was the bottom. It just took some time for demand to catch up (which is inevitably has).
To touch on our host’s blog entries of the past few days, the post world war 2 phenomenon where houses in urban areas were obtainable for the average person was a brief, north american anomaly that is over.
The young generation is constantly being exposed to unrealistic expectations, radical ideas and dangerous misinformation online in social media. It’s a world that has little to no relationship to reality, but can easily be misconstrued as though it does. To add to that, our news sources (aside from the CBC), are now almost completed owned by corporations from the United States whose revenue depends on pushing fear and anger for clicks, views and likes. It’s incredibly dangerous to ones mental health, especially for young people whose minds are still developing. The result is anger, blaming, distrust, and radicalization. Just look down south to see the results.
I would shutter the comments. They have little to no value anymore.
IDK
Once again no mention of the carbon taxes increasing alot this year again, 4 in a row now and all the environmental fees, taxes, levies, regulations imposed by the liberals in Ontario and still Canada Trudeau and rest. Get ready for 5% to 6% inflation rates in coming months.
#33 Yorkville Renter on 05.18.23 at 4:26 pm
2) In the amortization extension request in the budget said nothing about Primary Residences; only that banks extend the amortizations… so, we’re now covering for speculators who made a bad bet.
Exactly. If real estate investors are being covered by the government, why not market investors? Will the government cover them if their stock goes down? Unbelievable.
If T11/2 and deputy Unfreeland do decide to put a jock strap under mortgage renewals, the broken future will surely usher in central bank digital currency. The trilemma (see Mohamid El Elrian) has come full circle. All CBs are working in concert with this bubblisous hosing market. Rate Yikes Are the Order of the Day! Hold on to your SHORTS.
Just wondering how the B&D crowd are doing this year.
I’m up about 1.5%, was about 5.5% at the end of April.
Anyone?
#46 Remmy on 05.18.23 at 5:42 pm
It’s the opposite.
Taxes are deflationary: they reduce inflation by reducing money hoarding:They force money to travel around the economy.
Taxes can also be used to reduce government debt, “balance the budget.”
#33 Yorkville Renter
#47 ts
It’s a double edged sword.
On the Equity of Asset Investing issue, I agree.
On the other hand, Cdn Wealth depends on RE to a large extent. If RE prices drop, wealth goes down and I don’t have to tell you what happens when people perceive they are less wealthy. In 2022, 71% of GDP came from Cdn Consumer Spending.
Equity vs. Consequences of Less Wealth.
Rock and a hard spot.
It seems the Liberals/NDP deferred to safety in numbers, i.e., how many own a home or want one vs. Mr. Market investors.
It will get votes.
Oh Yes, and ShantaTiff (not to be confused with the trademarked “Santa” title of the guy in red) will most likely start lowering interest rates at the end of this year, just in time for Christmas. I will have some shiny stockings hanging by the chimney near the Christmas tree in anticipation, oh and a glass of milk and cookies on the table waiting for Shanta. Loving it. Life is good! Ahhh calculated risks and the juicy rewards.
Mr. Gosselin here is a genius. So spot on!
https://www.mpamag.com/ca/mortgage-industry/industry-trends/bank-of-canada-could-cut-rates-before-the-end-of-2023-economist/442176
A blog dog formerly known as (TiffIsALoser and formerly… HateTiff)
#164 Shawn on 05.18.23 at 11:49 am
Speaking of a tax for sleeping single.
Crazy idea. But how much of the housing shortage is caused by so many people living alone or not pairing up two per bedroom?
////
Don’t blame Dolce. Nobody likes him.
#47 ts
Market investors have to sell at a loss to get help from Gov.
It’s called a Capital Loss:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/capital-losses-deductions/you-use-a-capital-loss.html
“You can use a net capital loss to reduce your taxable capital gain in any of the three preceding years or in any future year.”
Thus, there is some relief for Mr. Market investors. Something Homeowners do not get upon selling their Principal Residence at a loss.
Then again, only useful if Mr. Market investors sell and incur capital gains.
Students in the Central Okanagan are staying indoors today due to the poor air quality.
In a letter sent to School District 23 families Thursday morning, Superintendent Kevin Kaardal said local schools have limited “non-essential outdoor activities” and students will stay indoors during recess and lunch, while the smoke remains in the Okanagan.
“While we always want to get the benefits of being outside for physical activity, it is important that children not take on strenuous outdoor activity during High Risk conditions,” Kaardal said.
“Short term exposure to smoke can cause irritation of the airways. Even children who have healthy airways may be affected with mild cough, sore throat, wheezy breathing, eye irritation, runny nose, increased phlegm production, and headaches. Persons with lung conditions, such as asthma, or heart conditions, can experience exacerbations, so they should take extra precautions to reduce exposure to poor air quality.”
https://www.castanet.net/news/Kelowna/427484/Central-Okanagan-students-stay-indoors-due-to-smoke-Thursday#427484
It would be interesting to know the demographics of those dealing with the variable-rate crisis (extended amortizations / rate reset worries). As someone straddling the boomer/GenX demo, I didn’t fall for the tasty-rates last year at renewal. We were actually laughed at for spending so much by locking in a rate of 2.7% for our remaining 8 years. I guess we’re weirdos who actually want our house paid off by retirement (which our basement tenants are nicely taking care of).
Correct me if I’m wrong but I seem to recall a quote from Janet Yellen back a few years ago stating Canada’s housing market is safe for now. The U.S and Canada’s interest rates were low at the time and she wasn’t hiking the Fed. Now what would she say?
100% Trudeau meddles again.
The higher Trudeau pushes shelter prices, the more crack fuelled violence will blossom in your hood. The more crime, drugs, and gang banging. More shootings, more stabbings. Any society that ever allowed the bottom few percent to drop right over the edge has reaped the same. Trudeau is straight up pushing them over. It’s a straight line, it’s well understood, but the Libs don’t care. But you might, depending on where you live.
High shelter prices are strongly correlated with increased homelessness. Homelessness is strongly correlated with addiction issues. Increased addiction is strongly correlated with increased crime. Trudeau is destroying this country.
Tractor dude. You need to lie down for a spell. – Garth
#30 Sail Away
Elated here as well with this months dividend today from TSLY (why I am a TSLA Born Again convert).
According to WebBroker the April dividend came in at 37.62% annualized.
Buying more.
I still think it may well be a Bernie Madoff scheme but in the meantime like you, reaping the benefits.
And thank you ElGatoNegro YVR for the tip, wherever you may be.
#168 Linda on 05.18.23 at 12:16 pm
#142 ‘Bezengy’ – again, a possible solution with as you say a ‘win-win’ potential outcome. However, your post doesn’t state the class of the incarcerated. I’m presuming the inmates are none of them considered high risk & that they are incarcerated for (mostly) non-violent crimes. More fraud & shoplifting, less murder & mayhem. Because putting shop tools into the hands of incarcerated felons is maybe not the brightest idea….. just saying could be a real issue doing that. Sort of like handing them the keys to get out, because if they have access to stuff that cuts through metal could be they might decide to try it out on stuff other than the modular unit they are creating.
———————-
I wouldn’t be too worried about the danger criminals pose to society when working in prison system. Many violent criminals have already been released or never sent to prison in the first place due to our justice system, and like I did state, this is nothing new and has been done before. At any rate, we have an affordable housing crisis and if I was in charge I’d be using inmates, high school and college kids, the unemployed, even the army in an effort to address the problem. With regards to inmates, I’d provide incentives like better food, and even pay them for their efforts. Their pay would go towards buying an annuity upon their release, and they’d have a skill or two they could use in the real world. They’d be cranking out affordable prefabs faster then Planters cooks peanuts. I’ve got it all figured out.
btw…I enjoy your posts, as well as Barb, and Jane24. No doubt you’ve inspired many young women to contribute with insightful comments.
#58 Dolce Vita on 05.18.23 at 6:39 pm
#30 Sail Away
Elated here as well with this months dividend today from TSLY (why I am a TSLA Born Again convert).
According to WebBroker the April dividend came in at 37.62% annualized.
Buying more.
I still think it may well be a Bernie Madoff scheme but in the meantime like you, reaping the benefits.
———
Haha, glad to hear it!
It is your money, you are the one taking the risk, and you have every right to enjoy those sweet fruits.
There are many valid paths.
#46 Remmy on 05.18.23 at 5:42 pm
Once again no mention of the carbon taxes increasing alot this year again, 4 in a row now and all the environmental fees, taxes, levies, regulations imposed by the liberals in Ontario and still Canada Trudeau and rest. Get ready for 5% to 6% inflation rates in coming months.
$$$$$$$$$$$
Poilievre mentions it every day. The Liberals/NDP brush it off by calling it rage farming.
https://vancouver.citynews.ca/2023/05/18/bc-safer-supply-criticisms-coroner/
200 more overdose deaths in BC in April.
That brings the total to over 12,000 in BC since 2016.
And the OD survivors suffer brain injuries due to lack of oxygen when they stop breathing.
These people will cost the medical system BILLIONS for the rest of their lives…….
Here’s an idea since the govt seems incapable of dealing with the situation.
Time for citizens to boycott China’s products ?
All fentanyl ingredients come from China via Mexico….
https://www.npr.org/2020/11/17/916890880/we-are-shipping-to-the-u-s-china-s-fentanyl-sellers-find-new-routes-to-drug-user
The ass-clowns trying to run the federal government just gave 15 Billion tax payer dollars to VW to build a factory full of robots at the dawn of strong AI. Maybe a thousand jobs will be created. Less than one day of immigration.
The level of corruption in this government is astounding. Of course the clowns will extend mortgages to infinity and beyond. Must keep the bubble going.
I so regret moving back to Canada. What the hell was thinking.
Here is a video of the tesla battery factory. No humans need apply.
https://www.youtube.com/watch?v=zB8_HbrxUi8
Memo to Garth:
Any comments re: this re: the Peel Region?
Many other jurisdictions aim towards “Super Cities”..whilst this development appears to have an opposite trend.
https://www.google.com/search?q=ford+gov%27t+to+dissolve+peel+region+by+2025&oq=ford+gov%27t+to+dissolve+peel+region+by+2025&aqs=chrome..69i57j0i546i649j0i546.21881j0j7&sourceid=chrome&ie=UTF-8&bshm=bshqp/1
#45 I don’t know on 05.18.23 at 5:29 pm
The rate hikes just made homes more expensive. The game has only changed to the extent that it’s harder to obtain real estate now than it has ever been.
In Canadian culture (and almost everywhere else on earth) buying a home is considered a rite of passage. That’s never going to change, regardless of whatever the interest rate is.
In an era where few have pensions to count on, a home is considered a store of wealth, as well as an investment. Generational wealth that can be passed down to children. It’s a bonus that you can live in it. The truth is most people do not want to be paying rent in old age.
So of course January was the bottom. It just took some time for demand to catch up (which is inevitably has).
To touch on our host’s blog entries of the past few days, the post world war 2 phenomenon where houses in urban areas were obtainable for the average person was a brief, north american anomaly that is over.
The young generation is constantly being exposed to unrealistic expectations, radical ideas and dangerous misinformation online in social media. It’s a world that has little to no relationship to reality, but can easily be misconstrued as though it does. To add to that, our news sources (aside from the CBC), are now almost completed owned by corporations from the United States whose revenue depends on pushing fear and anger for clicks, views and likes. It’s incredibly dangerous to ones mental health, especially for young people whose minds are still developing. The result is anger, blaming, distrust, and radicalization. Just look down south to see the results.
I would shutter the comments. They have little to no value anymore.
IDK
**********
Shutter the comments so you can enjoy life with your horse blinders on. Dictators do not like free speech either.
IDK, you are a perfect candidate for a person that needs to use a new upgraded AI system as your current one is broken and logic is not your strong suit.
pentagon accounting error of 3b.
The Biden administration made an accounting error in assessing the value of military support the US has given to Ukraine to date, freeing up approximately $3 billion more in aid, multiple congressional and administration officials told CNN.
The accounting error occurred because when the US transferred weaponry to Ukraine, they used the value of the replacement instead of the value of actual weapon, defense officials explained. That drove up the cost of each package — because new weaponry costs more than old weaponry — and resulted in the false assumption that more of the funding had been used.
Now, due to this revelation, there is about $5.3 billion still available,
Amrita Sen of Energy Aspects is calling for oil to increase to US$100 by late summer. Amrita is no crackpot – she is a well respected analyst within the industry.
The forecast is surely based on a well thought out analysis of the world supply/demand outlook. If Amrita is only directionally correct and I suspect she is – that’s going to blow a hole in the B of C’s forecast for inflation to fall to 3% this summer.
https://ca.finance.yahoo.com/news/extremely-bullish-oil-could-hit-us100-per-barrel-summer-135022057.html
Maybe I wasn’t the only one aroused by the CPI then… But sure, blame real estate. It has been the most inflated “gas bag” for the longest time.
Yes, Remmy, Trudeau, Biden are EU lovers. They are for big wasteful government because they cannot build, create anything useful of value just more taking away from everyone.
Canada’s epic housing bubble will definitely burst. Question is when? It just needs to find a pin. The pin could be another 25pbs hike. All bubbles burst and revert to the mean.
I am just loving these 4.5%+ GIC rates from 5 to 10 years. Compounding them in my RRSP, LIRA, TFSA all tax sheltered and keeping my income tax average bracket in the 15% or less. My goal has been reached with $30,000 interest all tax sheltered while my employment income is below $50,000 and the lowest income tax rates.
It would be nice to have a carbon credit for the 20 megawatts of solar power we produced on our roof.
Gov’t read this?
An amortization of 50+ years is ridiculous. It’s basically lifelong voluntary indentured servitude to the govt and the banks.
#58 IHCTD9 on 05.18.23 at 6:36 pm
100% Trudeau meddles again.
The higher Trudeau pushes shelter prices, the more crack fuelled violence will blossom in your hood. The more crime, drugs, and gang banging. More shootings, more stabbings. Any society that ever allowed the bottom few percent to drop right over the edge has reaped the same. Trudeau is straight up pushing them over. It’s a straight line, it’s well understood, but the Libs don’t care. But you might, depending on where you live.
High shelter prices are strongly correlated with increased homelessness. Homelessness is strongly correlated with addiction issues. Increased addiction is strongly correlated with increased crime. Trudeau is destroying this country.
Tractor dude. You need to lie down for a spell. – Garth
——-
We’ll see if I need a rest or not over the next 5 years or so.
My .02 says:
1. Trudeau will meddle again – 100%.
2. The social ills which have germinated under Trudeau will get worse – 100%.
It’s no accident that all this stuff has coincided with the highest housing/rent prices in Canadian history.
Wow. Leadership debate (Alberta) on the telly. UCP seems to have the upper hand imho, especially using NDP coalition with Libs as a hammer. No flies on Danielle. Mercy.
#73 Wrk.dover on 05.18.23 at 8:15 pm
It would be nice to have a carbon credit for the 20 megawatts of solar power we produced on our roof.
Gov’t read this?
—
Nova Scotia has a lot of coal and gas on its grid, so you get an implicit credit in not buying power off the grid.
Regardless, the carbon tax is more or less revenue neutral, so not inflationary contrary to all the chicken littles running around comments.
Today the BoC released it’s Financial System Review and it explains in detail what is on the horizon.
To summarize: every things falls to pieces over the next two years because of the tremendous accumulation of debt.
Tractor Dude is absolutely correct. All negative stats climb in proportion to rising housing costs. FACT.
Homelessness stats obviously go up. Spousal & child abuse, murder, rape, drug use, suicide, car theft, property crime, crisis center hotline calls, 911 calls…
As Boomers chuckle about rising assessments on multiple properties, they bitch about negative stats rising.
There’s a ton of research on this. But you can see it first hand with your eyes. Everywhere.
Round em up and put them in a gulag. Then make an army with them lol
#75 IHCTD9 on 05.18.23 at 8:19 pm
“It’s no accident that all this stuff has coincided with the highest housing/rent prices in Canadian history.”
Trackie, check out this article out today regarding the diminishing affordability of housing in the States.
I read horror stories each day in Australia, but I don’t put them up because the kiddos on here are staying up later and later.
They’ve tied all the rowboats together and Little Miss Pink is trying to take us down the sink…
M48BC
////////////////////////////////////////////////////////
Visualized: The Decline of Affordable Housing in the U.S.
Housing Affordability At Its Lowest Ebb in Decades.
“The U.S. house-price-to-income ratio, which tracks house prices in multiples of annual income, has steadily climbed since the mid-1980s, when the market was recovering from a real estate crash earlier that decade.
Historically, the ratio has hovered between three and four. But in the early aughts, the ratio passed four and kept going, reaching a high of 5.11 in 2005. The ratio fell somewhat in the aftermath of the subprime mortgage meltdown, but never returned to historical averages. New records were set in 2014 (5.33), and again in 2021 (5.61).
Housing data is available up to the first quarter of 2023, when median prices eased off from a record-high $479,500 at the end of 2022 to $436,800 in the first quarter of this year
Issue Top of Mind For Local Communities.
Amid the steady erosion of housing affordability, U.S. residents have reacted with rising concern. In 2018, when the Pew Research Center asked about major problems affecting local communities, the top spot went to Drug Addiction at 42%, compared to 39% on the Availability of Affordable Housing.
In 2021, the situation reversed itself and housing affordability was the #1 problem according to 49% of respondents, an increase of 10%. Drug Addiction, on the other hand, fell to 35%.
In general, younger Americans (55%), urban residents (63%), and those with lower incomes (57%) expressed more concern than their counterparts.”
https://www.visualcapitalist.com/sp/the-decline-of-affordable-housing-in-the-us/
I do not know about other utilities but Toronto Hydro has a desperate attempt to help electric car owners with some new 2.4 cents per kilowatt during the night into morning. It reeks of desperation and the low information person will think it is great until they find out it is temporary and electricity rates go to 30, 40, 50 cents per kilowatt in say 2027 to 2030 and not saving anything and gas is actually cheaper even as higher they go. The European model of high energy, restrictive, high tax, fees etc. life they want to do this in Canada under Liberal, NDP socialist power addictive politicians, policymakers.
Probably need serious double digit interest rates to curb the excesses of the real estate market and government borrowing. Governments and real estate investors have had their fair share of mercy. Time for things to get serious.
#64 Neo on 05.18.23 at 7:13 pm
“…..The ass-clowns trying to run the federal government just gave 15 Billion tax payer dollars to VW to build a factory full of robots at the dawn of strong AI. Maybe a thousand jobs will be created. Less than one day of immigration……”
==================================
COMMENT:
If one does …..even the most miniscule research….we in CanadUH already have a controversy with one EV battery manufacturer.
https://windsorstar.com/news/local-news/stellantis-lg-prepared-to-pull-the-plug-on-windsor-battery-plant-sources-say.
In USA..
……there is a controversy re: an EV battery plant whereby the workers are being paid HALF what union autoworkers are being paid.
THUS:
I foresee in Canada an EV battery plant joint venture with VW run by AI , ..proportionally few jobs…and the taxpayer ..as usual…being ho$ed whileT2 and Co. show up for ribbon- cutting photo- opps.
If one researches VW….they are very low on the global EV totem pole.
Pathetic…
#39 Sail Away on 05.18.23 at 5:04 pm
#35 Dolce Vita on 05.18.23 at 4:40 pm
#30 Sail Away
…student of the master
—
LOL. Looks like the things you could learn are owning your mistakes and reporting your fckups. Icahn has lost money every year since 2014 — yep, one of the most explosive equity growth periods of all time. Clown show.
Carl Icahn admits mistake with bearish bet that cost $9bn
Ponzies pithy patter
“Leaky condos are so 90’s…”
+++
Yep.
Now they hit you with concrete instead of dripping water…
https://globalnews.ca/news/9706584/bc-condo-lawsuit-ceiling-collapse/
#66 DON on 05.18.23 at 7:20 pm
“Shutter the comments so you can enjoy life with your horse blinders on. Dictators do not like free speech either.
IDK, you are a perfect candidate for a person that needs to use a new upgraded AI system as your current one is broken and logic is not your strong suit.”
-Hey DON,
If you get a chance, go on youtube and watch some Canadian election debates from the early 80’s. Notice the decorum. Notice the underlying respect the candidates have for one another, despite their differing views.
Canadian politics was (and largely still is), polite and boring. This is considered a source of pride.
If you look at US politics, you’ll see there is almost a straight line between increased political polarization and divisive messages being put out by corporate media, and more recently, social media. Anger and fear sell, and they sell well. The atmosphere is definitely more tense in the US, but it’s starting waft up north, which is worriesome. Even our host has been writing about this as of late.
Regarding my comment, house prices are up and people still want homes. That’s fact. Young people are suffering from mental health problems because of their exposure to social media. That’s also fact. Nothing I mentioned lacks logic, as you put it.
IDK
Good governments can go bad. I think politics are so messed up now and things are so far gone it does not matter who get’s voted in. These are really tough times for our young people , especially those who do not have parents with money. I don’t blame some for being upset. And I truly believe that there is no more democracy in the USA and Canada. (There is certainly no democracy for the prairies, bashed and bloodied about by the eastern overlords.) The debt ceiling crisis in the USA is disgraceful, wicked nonsense scaring the hell out of the world. The USA billionaires pull all the strings. Shame on some of the USA politicians and MSM for promoting this nonsense! We still went defensive in our portfolio as we are retired and can’t take a chance. We are thankful to have generous savings and to live in the prairies where things are stable, friendly and a young family can still make a good go of things. Sorry if the extremists hate us, but we still need oil and gas for many years to come. Sod off the lot of you !! Good level headed neighbor’s with common sense and reasonably priced energy make all the difference when things go south.( also manly oil workers, tradesmen and farmers with guns are a bonus)…Just a thought there upper Canada and Quebec….Good grief…we do not live in Disneyland. And those who think immigrants only go to Toronto and Vancouver have rocks in their head. We have plenty of nice people here in the prairies, new and old, from all over the world. Have a nice evening.
#47 ts on 05.18.23 at 5:48 pm
#33 Yorkville Renter on 05.18.23 at 4:26 pm
2) In the amortization extension request in the budget said nothing about Primary Residences; only that banks extend the amortizations… so, we’re now covering for speculators who made a bad bet.
Exactly. If real estate investors are being covered by the government, why not market investors? Will the government cover them if their stock goes down? Unbelievable.
…….
This is such a good point it should be acted upon immediately by government!
#80 Flop… on 05.18.23 at 8:53 pm
#75 IHCTD9 on 05.18.23 at 8:19 pm
“It’s no accident that all this stuff has coincided with the highest housing/rent prices in Canadian history.”
Trackie, check out this article out today regarding the diminishing affordability of housing in the States.
I read horror stories each day in Australia, but I don’t put them up because the kiddos on here are staying up later and later.
They’ve tied all the rowboats together and Little Miss Pink is trying to take us down the sink…
M48BC
////////////////////////////////////////////////////////
Visualized: The Decline of Affordable Housing in the U.S.
Housing Affordability At Its Lowest Ebb in Decades.
“The U.S. house-price-to-income ratio, which tracks house prices in multiples of annual income, has steadily climbed since the mid-1980s, when the market was recovering from a real estate crash earlier that decade.
Historically, the ratio has hovered between three and four. But in the early aughts, the ratio passed four and kept going, reaching a high of 5.11 in 2005. The ratio fell somewhat in the aftermath of the subprime mortgage meltdown, but never returned to historical averages. New records were set in 2014 (5.33), and again in 2021 (5.61).
Housing data is available up to the first quarter of 2023, when median prices eased off from a record-high $479,500 at the end of 2022 to $436,800 in the first quarter of this year
Issue Top of Mind For Local Communities.
Amid the steady erosion of housing affordability, U.S. residents have reacted with rising concern. In 2018, when the Pew Research Center asked about major problems affecting local communities, the top spot went to Drug Addiction at 42%, compared to 39% on the Availability of Affordable Housing.
In 2021, the situation reversed itself and housing affordability was the #1 problem according to 49% of respondents, an increase of 10%. Drug Addiction, on the other hand, fell to 35%.
In general, younger Americans (55%), urban residents (63%), and those with lower incomes (57%) expressed more concern than their counterparts.
———— –
Canucks would be dancing in the streets if median house prices here were 437K. We’re at 881K average in Ontario. You BC folks are at 960K average.
Is it too much to ask for a PM who does not pine to make bad things worse? I think it must be. If Trudeau can’t keep his meddling little fingers out of the housing market, there’s going to be zip left of what was once one of the best Countries in the world to live in.
At least the US kids and urbanites seem to understand where they’re headed. Up here, we place our faith in government…
What an interesting week..
Fact remains, buy quality assets.
Housing may suck but my diversified tfsa hasn’t been lighting the world on fire since Jan. 1st either.
I doubt t2 and freedland are going to change their tunes. Pierre isnt going to be the one that to make houses more affordable either.
The Fed can raise as much as it wants, but it can’t counteract the various incompetent governments in place which have set the stage for too much demand and not enough supply. The market is gravely out of whack.
That said, I would welcome the Bank of Canada actually doing its job and bringing real rates well into positive territory. But I’m not holding my breath.
#81 Dooped
“I do not know about other utilities but Toronto Hydro has a desperate attempt to help electric car owners with some new 2.4 cents per kilowatt during the night into morning.”
—————————————————————-
There is nothing desperate about this – in fact it makes good economic sense for Ontario electricity ratepayers.
During the night electricity demand is so low in Ontario the price declines on the wholesale market – sometimes it goes negative and we pay neighbouring jurisdictions to take it from us. Why would we do that?
Because once you have turned off all the peaking generators that can be “easily” turned off, you are left with base load nuclear plants – and it costs millions of $$ to shut them down and start them back up. Not to mention they are not designed to be turned off and on with any frequency.
EVs charging at night help flatten the load profile of Ontario’s grid and that makes good economic sense for ratepayers in Ontario.
By the way, it was the Ontario Energy Board that recently set this pricing mechanism – Toronto Hydro just delivered the message to you.
#77 “Regardless, the carbon tax is more or less revenue neutral, so not inflationary contrary to all the chicken littles running around comments.”
—————————————————————–
Get real, its a frigging tax grab:
“Based on our analysis, most households will pay more
in fuel charges and GST — as well as receiving slightly lower incomes — than they will receive in Climate Action Incentive payments,” the PBO report said.”
https://torontosun.com/opinion/columnists/trudeaus-second-carbon-tax-to-cost-canadians-big-time
And this: “The sad thing is, all of these charges that Trudeau has brought in are supposed to be about lowering Canada’s carbon emissions, something that hasn’t happened and likely won’t in the near future.”
Canada’s miniscule 1.5% contribution to worldwide emissions Trudeaus and Butts vanity project from heaven will cost everyone and achieve diddly. We are governed by ideological spendthrift idiots.
Why is everyone thinking a rate cut is inevitable? Rates have been uncharacteristically low since 2010. The 12 year experiment of low cost money may be coming to an end with a resumption of normal prime rates of 5-6%.
#84 Faron on 05.18.23 at 9:39 pm
#39 Sail Away on 05.18.23 at 5:04 pm
…student of the master
—————
LOL. Looks like the things you could learn are owning your mistakes and reporting your fckups. Icahn has lost money every year since 2014 — yep, one of the most explosive equity growth periods of all time. Clown show.
Carl Icahn admits mistake with bearish bet that cost $9bn
Icahn’s bearish bets are the main reason his investment portfolio has lost money in every year since 2014. Over the roughly six-year period that he lost $9bn on the short bets, the portfolio made about $6bn from his activist wagers, leaving the vehicle with an overall investment loss of nearly $3bn.
—————
[random interwebz dudeski with no idea about my net worth, allocation, goals, risk tolerance, or timelines]
‘YoU’re InVesTing WrOng!!!’
Heh
#93 WTF
Canada’s miniscule 1.5% contribution to worldwide $94 emissions Trudeaus and Butts vanity project from heaven will cost everyone and achieve diddly. We are governed by ideological spendthrift idiots.
——-
Do you pee in the swimming pool too?
“My urine accounts for a miniscule 1.5% of total urine-based nitrogen in the swimming pool. Hardly anyone will notice if I start or stop peeing. It’s pure vanity to stop me from taking a wiz in the pool, it will cost me dearly as now I will be required to get out of the pool and pee in the appropriate urinal. And moreover it will achieve diddly.”
What’s the point? Anything the BOC does to try and cool the housing market will be negated but the Federal Govt trying to keep it hot.
73 Wrk.dover on 05.18.23 at 8:15 pm
It would be nice to have a carbon credit for the 20 megawatts of solar power we produced on our roof
_______
Sorry, no.
225 W panels are typical.
You’d need 120,000+ panels to make 2mW.
Or you have a very large roof.
But perhaps you mean mW hours.
Watt, kw, mW – instantaneous power. Like horsepower in a car.
An ‘amount’ or ‘quantity’ of electricity (like a battery can hold, a monthly utility bill, or what you’ve made) is in units of Watt hours. ( simply W x h)
Please help spread the word!
You wouldn’t say your car has 100,000 horsepower because it output 100hp for 100,000 miles. ( at 60mph ofc).
Sorry it’s a pet peeve.
NS Power aka EMA.TSE had some trouble inflating the price of a kwHr to match expenses with review board intervention, so….
The price of the basic monthly service fee just went up by Canada’s inflation rate of 4.4% from $10.83/mo to $19.17/mo. (Freeland accounting math) on the new bill in the inbox last night.
Maybe the HST increase alone on that adds 4.4% to it!
The juice it’s self only went from .16215 > .16354 cents.
These guys are good, they got their $ in the end!
Edit; not cents, dollars
I remember that early in the year Garth indicated he was relieved that TIFF did not raise any further citing that the cliff was near.
He berated those who said a further hike should have come saying that things would have been a disaster.
Well who was correct and who was incorrect. INFLATION is not beaten as he indicated. If TIFF does not raise rates NOW or at the next opportunity, inflation will set in. Many things I purchase monthly for consumption has doubled in cost since a year ago. Even articles at Dollarama have gone from $3.50 at Dollarama to $5.00 now.
As for houses etc. Seen car prices lately? Any discounts?
Tiff has already messed up for two years running. Will he do so again?
He committed the same mistake that Powell is afraid to to commit.
Pause too soon and the resurrection will regain more strength. It is NOT different this time. Only pain will beat inflation. No pain no gain try disinflating your own body and see.
All I see is GIC rates falling especially at 5 years. No rate increases in the Bank of Canada rate until late 2025 at the earliest.
Buy today.
In the future, things will be more expensive.
Only if you have the money though.
Debt is a bad idea.
I can tell you with clarity. As a major manufacturer with extremely large US clients. Inflation is ramping back up. For those poking around attempting to draw the price of a 2×4 to inflation-stop.
There is a wage spiral and soon to be spike in energy coming. As the US begins to buy back the hundreds of millions of barrels of oil it flooded the market with. If you are a home owner trying to play the 1 year lock in and pray game-good luck. You are about to learn a painful lesson. Never listen to a realtor. Ever.
#96 Steve French on 05.19.23 at 1:20 am
#93 WTF
Canada’s miniscule 1.5% contribution to worldwide $94 emissions Trudeaus and Butts vanity project from heaven will cost everyone and achieve diddly. We are governed by ideological spendthrift idiots.
——-
Do you pee in the swimming pool too?
“My urine accounts for a miniscule 1.5% of total urine-based nitrogen in the swimming pool. Hardly anyone will notice if I start or stop peeing. It’s pure vanity to stop me from taking a wiz in the pool, it will cost me dearly as now I will be required to get out of the pool and pee in the appropriate urinal. And moreover it will achieve diddly.”
_____
Your analogy is missing the group of 400lb guys dropping #2’s at the other end of the pool. You’d expect the Lifeguard would go after those dudes first instead of the little kid taking a wiz.
The problem is, everyone at the pool brings their own Lifeguard, and they all make up their own rules, hence the dirty pool.
@#96 Steve-O
So you disagree that Trudeau and ( university buddy) Butts are two peas in a pod?
Ideological idiots that will spend billions of taxpayer dollars to support vanity projects that they have probably discussed endlessly since they first met?
Until China and India stop building coal fired power plants ( that we supply with millions of tons of coal per year)
https://biv.com/article/2023/03/canada-china-trade-not-expected-change-much-amid-critical-mineral-protectionism#:~:text=China%20accounted%20for%20%248.5%20billion,billion%20(36%20per%20cent).
Unless we cant stop sending them coal….because they already own the “Canadian” Coal mine.
Canadas pithy contribution to “solving” global warming is but a drop in a pool.
And Trudeau’s inherited millions from his grandfathers empire of Quebec gas stations reeks of hypocrisy……
As does poor Cape Breton Butts (from a part of Nova Scotia that was built on coal) …..is just a coattail rider in the grand scheme of things.
Trudeau and Butts will happily cut off Canada’s economic nose to spite it’s greenwashing face.
Just so long as Trudeau gets to eventually head the UN in New York and Butts is standing next to him writing his speeches….all will be well in their busy little world.
#96 Steve French on 05.19.23 at 1:20 am
#93 WTF
Canada’s miniscule 1.5% contribution to worldwide $94 emissions Trudeaus and Butts vanity project from heaven will cost everyone and achieve diddly. We are governed by ideological spendthrift idiots.
——-
Do you pee in the swimming pool too?
“My urine accounts for a miniscule 1.5% of total urine-based nitrogen in the swimming pool. Hardly anyone will notice if I start or stop peeing. It’s pure vanity to stop me from taking a wiz in the pool, it will cost me dearly as now I will be required to get out of the pool and pee in the appropriate urinal. And moreover it will achieve diddly.”
—————————————————-
Good analogy.
In Salmon Arm now, cutting the vacation short, and going home.
Smoke and poor visibility spoil the experience.
#105 IHCTD9 on 05.19.23 at 8:06 am
#96 Steve French on 05.19.23 at 1:20 am
#93 WTF
Canada’s miniscule 1.5% contribution to worldwide $94 emissions Trudeaus and Butts vanity project from heaven will cost everyone and achieve diddly. We are governed by ideological spendthrift idiots.
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Do you pee in the swimming pool too?
“My urine accounts for a miniscule 1.5% of total urine-based nitrogen in the swimming pool. Hardly anyone will notice if I start or stop peeing. It’s pure vanity to stop me from taking a wiz in the pool, it will cost me dearly as now I will be required to get out of the pool and pee in the appropriate urinal. And moreover it will achieve diddly.”
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Your analogy is missing the group of 400lb guys dropping #2’s at the other end of the pool. You’d expect the Lifeguard would go after those dudes first instead of the little kid taking a wiz.
The problem is, everyone at the pool brings their own Lifeguard, and they all make up their own rules, hence the dirty pool.
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The problem with your analogy is that there are far more skinny guys in the pool than fat ones.
Most fat people are in the 1st world countries.
Yes Garth, the game has changed. So here’s one for those vengeful souls sitting on the sidelines just waiting to see the reckoning that has been brewing for DECADES now in Canadian real estate finally arrive once all the meddling politicians and banks back off and let this godforsaken house of cards come crashing down.
Ok you miserable miscreants of the steerage class, it’s time for JUMBLE, you know, that scrambled word game!
Unscramble the following 4 words and then gather the numbered letters from each to solve the JUMBLE pun!
First one to post the answer wins! The prize? To continue watching in amazement at how the irresponsible, financially illiterate coddled masses keep gettin’ away with it scott free! At least this will give you a chuckle while you wait. Yes Garth, you can play too! I’ll take it as an exceptional compliment if you post the answer yourself. :)
ETOGMRAG _ _ _ _ _ _ _ _ use letters 1,2,3,6 and 8
CHOLE _ _ _ _ _ use letters 1,2 and 4
TISERETN _ _ _ _ _ _ _ _ use letters 2 and 7
ZIMROATE _ _ _ _ _ _ _ _ use letter 2
JUMBLE CLUE: Upon renewal, those homeowners became: _ _ _ _ “_ _ _ _ _ _ _”
It’s knee slappin’ hilarity at its finest!!! Don’t cha just love a good pun!
@#107 Ponzie prevails
“In Salmon Arm now, cutting the vacation short, and going home.
Smoke and poor visibility spoil the experience.”
+++
Don’t forget to visit the Salmon Arm train station where Prime Minister papa Trudeau gave the locals The “Salute” for peppering his train car with rotten fruits and veggies….
https://parli.ca/salmon-arm-salute/
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Good analogy.
In Salmon Arm now, cutting the vacation short, and going home.
Smoke and poor visibility spoil the experience
********
Don’t turn back…play a game of escape the smoke, you never know where you will end up and you will know when you reach paradise…clean air.
Road trip! If the wife doesn’t want to play…Crowdie can meet up with you at the next airport.
#108 Ponzius Pilatus on 05.19.23 at 8:49 am
#105 IHCTD9 on 05.19.23 at 8:06 am
#96 Steve French on 05.19.23 at 1:20 am
#93 WTF
Better, but also imperfect analogy, is murder. A nation’s legal system prosecutes murder full stop. Only a raving idiot would choose to prosecute or not based on rates relative to other countries. To make the analogy more exact, lets take Ukraine and assume that the rate of Russians killing Ukrainians far outweighs the rate of murder in Ukraine. Should Ukraine just stop prosecuting the crime of murder? No.
“Well jeeze, it’s not like CO2 kills people”
Actually it does via climate impacts and the other byproducts of emission (especially from coal and oil) are ultimately deadlier.
A nation can only control what happens within its borders (more or less). A nation is responsible for its own pollution. Canada should be doing far more to curb emissions. The carbon tax is too small.
#81 Dooped
https://www.globalresearch.ca/1500-scientists-say-there-no-climate-emergency-real-environment-movement-hijacked/5809791
Garth, go look at property prices across the world. Canada is too affordable still. Apartments in Dubai, Bali, Turkey, Spain and other popular markets are flying off the shelves like hotcakes before even being built at Canadian prices with average salaries many times less than here AND without any mortgages. So Canadian real estate is not going anywhere.
#95 Sail Away on 05.19.23 at 12:44 am
#84 Faron on 05.18.23 at 9:39 pm
#39 Sail Away on 05.18.23 at 5:04 pm
…student of the master
…
[random interwebz dudeski with no idea about my net worth, allocation, goals, risk tolerance, or timelines]
‘YoU’re InVesTing WrOng!!!’
Heh
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Well, it seems you research your positions about as well as your spaghetti sauce recipes. So, I thought I would help out.
And your ginormous ego has caused tou to tell us your net worth on at least two occasions.
You also just double counted a cap gain and dividend on the eve of IEP going ex dividend and wiping your cap gain. 😎
Which brings me to this: IEP is paying a (completely unsustainable) $2 dividend. So, when it went ex-div, one would expect a $2 drop in share price. Yet, at this moment the price sits at a loss of $2.90.
Did I mention that Icahn lost money annually since 2014? Discernment.
Some say 65% voted for socialism. 100% of the legal choices on the ballot represent a choice for socialism or tolerance for its policies. There is no escape yet as it is illegal. You can’t have a party that would lock up the socialists and their fellow travelers and clean up the mess they made of the country and its finances. The socialists and their masters and fans for won’t allow it. The socialists come in many guises and under many banners to confuse people and garner their support.
Socialist parties and governments are in fact an intermediary between big monied interests and the mass of the public to keep them pacified, well behaved while being made useful to the powers that be. The elites make money, the leftists stay in charge and the public are persuaded that they are being catered to even if they lose it all one bit at a time. Ultimately it is a dog eat dog system but with great advertising.
As I understand it China is a significant coal producer in its own right. They might notice a drop in iron ore and scrap imports but for how long? Oil and gas imports by pipeline would be hard to block short of a bombing campaign.
With Russian and middle eastern trade partners it would be difficult to cut China off from resources. Although the chinese are not absolutely unassailable they are in a good position to carry on as they see fit whether leaders like Biden and Trudeau like it or not.
As for access to export markets Canada and the USA is easily replaced and if they are in a recession or depression the loss is insignificant.
#109 schoolie on 05.19.23 at 8:56 am
HOME”MOANERS”
Thanks for the morning mental exercise and guffaw
DELETED
#117 Steven Rowlandson on 05.19.23 at 11:26 am
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China exists and was successful in prospering only because of America. The CCP likes to rattle their Sabres but they are very afraid of America. Their shipping lines/ corridors are easily cut off if necessary and within 6 months the economy would collapse. You need to check your facts about China. They have enjoyed prosperity and avoided several invasions only because of America security agreements from WW2 onwards. All that is changing.
#115 Faron on 05.19.23 at 10:48 am
#95 Sail Away on 05.19.23 at 12:44 am
#84 Faron on 05.18.23 at 9:39 pm
#39 Sail Away on 05.18.23 at 5:04 pm
…student of the master
—————
[random interwebz dudeski with no idea about my net worth, allocation, goals, risk tolerance, or timelines]
‘YoU’re InVesTing WrOng!!!’
Heh
—————
Well, it seems you research your positions about as well as your spaghetti sauce recipes. So, I thought I would help out.
And your ginormous ego has caused tou to tell us your net worth on at least two occasions.
You also just double counted a cap gain and dividend on the eve of IEP going ex dividend and wiping your cap gain.
Which brings me to this: IEP is paying a (completely unsustainable) $2 dividend. So, when it went ex-div, one would expect a $2 drop in share price. Yet, at this moment the price sits at a loss of $2.90.
Did I mention that Icahn lost money annually since 2014? Discernment.
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+53% in three years, all realized. Recent shenanigans pushed share price down. Picked up some more today and will happily let it ride.
I just have this wild idea that Carl Icahn is savvier than you. Sorry.
Well the divergence from the carbon revenue neutral stance from the T2 govt taxation to pool peeing and murder whataboutism is not entirely unexpected.
The analysis suggests very little actual thought emanates from the hyperventilating politicians pushing the carbon tax which apparently, in spite of the revenue neutral fantasy spewed by its less than fiscally gifted proponents, doesn’t add up, is disingenuous, and will cause much more harm than good.
https://www.msn.com/en-ca/money/topstories/opinion-net-zero-will-cost-a-lot-more-than-100-billion/ar-AA1bpdU6?ocid=msedgntp&cvid=50868a16e19c418ea2899f95ceb79794&ei=15
But sure peeing……
#116 Steven Rowlandson on 05.19.23 at 11:05 am
So eloquently put.
I always say left and right politicians are evil, the left slightly less.
Too hot. Too fast. Too high.
and…
Too Big To Fail.
The precedent has been set. Our government will extend amortizations again if necessary instead of allowing the over indebted to cave in on themselves.
I think there is no alternative but to let Real Estate deflate. Perhaps the author of the seminal tome “the troubled future of Canadian Real Estate” should again step into the sunlight.
64 Nio:
There are very few auto makes that can make a profit selling Battery Electric Vehicles ( BEVs). Some of the Chinese auto makes claim to, but they still depend on large govt. subsidies. Current auto makes that are trying to switch to electric vehicles are still facing large economic headwinds to profitability. These headwinds include dealing with Unions, Dealerships, renegotiating large debts at higher interest rates, not having the management culture needed to make compelling BEVs ( low software content), having to manage the unwinding of the Internal Combustion Engine (ICE) ‘assets” in an environmentally compliant manner, not having a seemless charging infrastructure to support the customer experience to name a few. If Artificial Intelligent self driving software becomes a viable reality in the next few years, (and it could be suddenly sooner), fewer total number of vehicles will be needed in the global fleet. Autonomous robo Taxis could operate 24/7 and demand for individual car ownership would plummet.( this also has profound implications on current use of land dedicated to the automobile model eg: parking lots) I would think it would be virtually impossible for any current OEM auto makers to survive. I personally do not believe any battery plant in Canada will be completed, let alone be viably profitable.
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