She wants your savings

Heya Werner.
I suspect not permanently and only for something “big”. Like these times.

For the record, unlike Canada housing in the US is slowly becoming more affordable. Biggest difference between them and us?. They are huge, with dozens of large cities/regions/economies. In a nutshell. One large city in the US doesn’t get 70% ( let alone their own citizens that find themselves looking for work) of all immigration like the GTA does, because that’s the only place with good jobs/money........

On debt
https://www.ctvnews.ca/mobile/busine...7QMi9fVSACZ6t8

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Originally Posted by JBen

Heya Werner.
I suspect not permanently and only for something “big”. Like these times.

For the record, unlike Canada housing in the US is slowly becoming more affordable. Biggest difference between them and us?. They are huge, with dozens of large cities/regions/economies. In a nutshell. One large city in the US doesn’t get 70% ( let alone their own citizens that find themselves looking for work) of all immigration like the GTA does, because that’s the only place with good jobs/money........

On debt
https://www.ctvnews.ca/mobile/busine...7QMi9fVSACZ6t8

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It's not just TO though. Ottawa is seeing crazy increases. The value of our house (bought in 2017) has increased by about 60% in three years.
The TO craziness has expanded to areas two hours drive from downtown TO.
Even up in Renfrew county - where houses and vacant land was always cheap - its reached there too.

Low interest rates and the money printing machines going full speed.
Now would be a good time to read up on the Weimar Republic.

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Originally Posted by werner.reiche

Hey JBen - good to see you back!!!

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I concur . Even though we do not always agree, his insightful comments are always welcome.

[QUOTE=werner.reiche;1135141]
Even up in Renfrew county - where houses and vacant land was always cheap - its reached there too.
/QUOTE]

You are certainly not kidding! Neighbour just sold his house, 10 years ago it would have went for 100K. Everything is outdated, old wiring, paneling walls and shag carpet, $250K with 36 hours on the market!

Sent from my SM-G973W using Tapatalk

Ottawa and outlying regions yes also. I would suggest similar dynamics. Just nowhere near the same. There's only so many places to live and work. Why did tens of thousands of maritimers leave the East Coast for Toronto back in the day (and still do)? Why did 10s of thousands of Ontarians head to Alberta between 2006-2010..... The GTA does get 70% of all immigration...

On housing.
https://www.mykawartha.com/news-stor...or-new-buyers/

PTBO is in crises.
The median duo income there is around $55,000. People are leaving the GTA in droves, flush with cash and their high paying jobs. Utterly killing the PTBO market and those that live/work there. One person we all know and like has been screwed by it.

London and St.Catharines are seeing the same. People can't even afford rent there.

Lindsay, which was one of the 5 pilot programs for basic income Ford and his mentally challenged brain killed is brutal. Lindsay after 2008 ( when they lost plants) is nothing but retail, the OPP, the Hospital, Jail and College. The basic income was going to small business owners, restaurant owners, retail workers and more. And yes, those on welfare everyone moans about :)....What is was doing, was putting a little more pocket change in peoples pockets, where they spent it......helping other businesses, who in turn spent on the roofer, who spent it on a used car, and the used car salesman spent it on...I don't know a dinner out or vacation....

A place just up the street from me, sold for $1,100,000 in August. It was nothing special....No doubt a couple that plans to commute to the GTA. Two doors up, a Cop and 911 dispatcher moved in during July. They both commute 3+ hours each day into the 416.......for work. What kind of a life is that!!!!!!!!

Anywho,
2020 and beyond.. About the only thing I can even guess at, is millions of middle class people are going to be hurting even more than they already were. Lower incomes, worsening credit "scores" or resumes as we call them, which makes it harder to borrow and rates are higher. Where even landlords these days run credit checks. When I was started out first/last and a reference were enough.

https://nationalpost.com/opinion/pie...t-card-economy

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Just a few observations I have made reading these posts and comments.

GW folks in the Maritime Provinces seemed to always get looked after by the Federal Government. I hear stories of guys fishing all summer making good money and then going on EI all winter. Would you really need two incomes?

The banks these day's do have stress test for mortgages basically they will lend you $200,000 for every $50,000 you earn.

In relation to two incomes, I managed on one for the past 40 years and raised three kid's,I knew guy's at GM who took home bigger pay's than me.

The middle class were screwed over by Globalization,Reaganomics,Thatcherism, and Wall Street Bankers.

There was no trickled down effect it was all pouring up to the 1%.

Poileivre had me until the last paragraph.
Don't misunderstand. I really like him and wish he had run for the Con leadership. However at the end of the day he is a politician. An actor playing to the crowd, whipping his supporters into a frenzy, using rhetoric, and blowing stuff out of proportion. In many ways he reminds me of Angry Tom and Jack Layton. :)

Gilroy, trickle down is a sham. We know that much.

Banks use a few test for mortgages and even car loans. The most common being TDS ( Total Debt Servicing) and GDS ( Gross Debt). Basically how much of your gross income is eaten by debt obligations and things like home heating/land taxes etc.

When I pull "your" credit bureua amongst other things is your credit utilisation. How much of your total credit availabity is being used. 50% is a cut off. Many people also do not know how credit cards help or hurt you. Or that the soft limit is 30% of the actual limit. Go over that, and your credit resume starts taking hits. That's why some people come to me with incomes over 100k, or 200k and they still cant get financing.

I read a great article the other day on the fallacy of some things since the 50s ( around the time duo incomes started becoming more common). Will see if I can find it.

somewhat related, and while not the article I was looking for it touches on some of the same things. The other article looked at ironically savings and investing. Which really gained steam in the 1950s/60s. "Co-incidentally" around the time duo incomes started becoming the norm. The author "argued" that as investing became more available to more people, the corporate mindset of shareholder profits took off.

Look around today.
We see companies leaving Canada for greener pastures. Whether manufacturing or energy. Whether because taxes are too high, or wages are too high. The bottom line is the bottom line.
We see companies ( 70 of them) that ponied up to the trough, took government handouts ( CEWS) and still paid shareholders dividends. wtf!
We see Walmart, Home Depot, Amazon having huge years, as are all the banks....Its all about profits and shareholders......right?

https://financialpost.com/business-i...pay-capitalism
/points to 80% of the population and an average household savings of $850/year

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Originally Posted by JBen

somewhat related, and while not the article I was looking for it touches on some of the same things. The other article looked at ironically savings and investing. Which really gained steam in the 1950s/60s. "Co-incidentally" around the time duo incomes started becoming the norm. The author "argued" that as investing became more available to more people, the corporate mindset of shareholder profits took off.

Look around today.
We see companies leaving Canada for greener pastures. Whether manufacturing or energy. Whether because taxes are too high, or wages are too high. The bottom line is the bottom line.
We see companies ( 70 of them) that ponied up to the trough, took government handouts ( CEWS) and still paid shareholders dividends. wtf!
We see Walmart, Home Depot, Amazon having huge years, as are all the banks....Its all about profits and shareholders......right?

https://financialpost.com/business-i...pay-capitalism
/points to 80% of the population and an average household savings of $850/year

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Well JBEN is a flip side to all this Corporate greed, ordinary folks like me can play the same game. Having come from very little in my childhood, I expect very little and need very little. So I only buy the basic necessities and have been doing so for years.

I have never every paid a red cent on credit card purchases in the way of interest. I understand I am paying some of it to the retailer for the credit card company charging them. I have only very once had a brand new car.

Lots of retiree's have money in the bank (not acquired since Covid BTW). But the retirees do not need to spend, they have homes already paid for ,the car's are paid for and the seasonal properties are paid for. They are afraid of the stock market as its a casino for the rich, they cannot afford to loose money, and some of them cannot afford to make money (claw back on pension income).

So what is the solution.

I am going to make a concerted effort to not buy anything from China (its going to be difficult) if I have to buy and this is to punish them in my own little way for all their recent bs.