FFFA! Little Mountain, Debt, Holidays & Heritage

Boo!

You made it to the end of another week and here at VCI that means it’s time for another Friday Free-for-all!

This is our regular end of the week news round up and open topic discussion thread for the weekend, here are a few recent links to kick off the chat:

Canadians spend more on housing
Heritage drives down prices
Using tax dollars to boost economy
The little mountain that couldn’t
Holidays are for losers
TFW program not so curtailed
Swedish bubble test case?

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

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patriotz
Member

“Canadians spend more on housing”

I give this survey no credibility at all.

According to the global survey – the largest of its kind, covering 1,000 Canadian investors at a range of income levels

Wow.

On average, respondents said that they spend 43% of their income on housing costs (mortgage or rent plus utilities) – third globally to the Netherlands and Sweden – and have only 23% of income left over to save and invest

What is this supposed to mean? Spending 43% on housing, 34% on everything else, and saving the other 23%? We have abundant evidence that those spending over 40% of their incomes on housing aren’t saving anything, whether they be owners or renters. Canada’s savings rate is in the single digits.

I give Statscan’s data, for all its issues, far more credibility.

http://www12.statcan.gc.ca/nhs-enm/2011/as-sa/99-014-x/99-014-x2011002-eng.cfm

George
Guest
George

The previous thread was talking about Compass Card. I am a regular transit user and this fiasco frustrates me beyond belief. I was busy yesterday so I missed out on the discussion here. I posted these at the end of yesterday’s discussion but I am re-posting here so they don’t get missed. Sorry for the double posts and the longish posts–Compass Card is a hot button issue for me.

George
Guest
George
The Compass Card system at this point is an unmitigated boondoggle. $200 million for a system that doesn’t work–and even if we can get it to work we now know that the cost to operate the system is more than what was being lost through fare evasion. This BC Liberal boondoggle is now 4 times more expensive to taxpayers than the fast ferry boondoggle that happened under the NDP that they never let us forget about even though it happened almost 20 years ago. It is widely reported that the government selected Cubic for the Compass Cards because of connections to BC Liberal insiders. Compass Card is security theatre. There was never a major fare evasion problem to begin with. I remember some Richmond politician (maybe the mayor?) being on the news saying fare evasion is a big problem and… Read more »
George
Guest
George
The zone system is incredibly unfair. People who can afford to live close to their jobs only have to pay one zone. People with lower income who can’t afford rents close to their job, especially if working in Vancouver, live further out in places like Surrey and end up crossing zone boundaries more often. The zone system punishes the poor and places a disincentive to use transit for longer trips, when if we are concerned about green objectives, I would think we would want to do the opposite and incentivize people to use transit for long trips. Zone system is arbitrary and does not necessarily mean people pay more for longer trips. You can go from Joyce to Waterfront on one zone (several stops) or you can go from Joyce to Patterson, one stop and have to pay two zones.… Read more »
Simon
Guest
Simon

Hey Bull!Bull!Bull!

Still curious about how everyone’s stock portfolios are doing?

Ha!

southseacompany
Member
southseacompany

“Canada’s Housing Market Defies Doomsayers”, Wall Street Journal

http://blogs.wsj.com/canadarealtime/2014/10/30/canadas-housing-market-defies-doomsayers/

“Like the Energizer bunny, Canada’s housing market keeps on going, defying long-standing predictions of a slowdown.”

“It’s one of the side-effects of keeping interest rates low, as Bank of Canada Governor Stephen Poloz acknowledged in front of a parliamentary committee late Wednesday.”

Priced out by choice
Guest
Priced out by choice

“This BC Liberal boondoggle is now 4 times more expensive to taxpayers than the fast ferry boondoggle that happened under the NDP that they never let us forget about even though it happened almost 20 years ago. ”

The fast ferries cost tax paypers only $50 million? I thought it was well over a Billion in 1990 dollars.

Marco
Guest
Marco
@6 southseacompany Thanks for the article, this paragraph stuck out for me: “Canada’s housing market didn’t experience a U.S.-style bust, thanks in part to more conservative lending practices. The government has tightened mortgage insurance rules four times between 2008 and 2012 to cool the market and rein in household debt that Canadians have built up by using cheap borrowing costs to buy homes.” What about Flaherty and Harpers 40 year mortgages and the Banks cash back mortgages? Poloz is no doubt towing the line and waiting to see when the US raises their interest rates. The only reason we didn’t have a correction in 2008 is because of emergency measures. Harper certainly didn’t want to see house prices correct under his watch and stop his chances of gaining a majority Government in 2011. After all his biggest voting base is… Read more »
Garbage
Guest
Garbage

Agreed the zone system is unfair. It should be about movement of people. It should work like a Canadian Postage stamp. It costs the same for traveling for 1 mile or 3000 mile.

Fire translink management mofo. But, well, people will just busy finding cheaper ipad mini and can’t be brother.

China 2.0
Guest
China 2.0

[b]Campaign trail tarred with ‘gay serum’ rumour[/b]

Incumbent school trustee Harman Pandher of the Burnaby Citizens Association (BCA) couldn’t believe what he was hearing.

While doorknocking last week, the Asian family who answered asked him if it was true that students at Burnaby schools were being injected with a drug that would make them homosexual.

It appears the rumour is only being spread in the Mandarin-speaking Chinese community, with the rumour-mongers targeting immigrants who don’t speak much English and don’t follow local politics.

http://www.burnabynewsleader.com/news/280949592.html

booby
Guest
booby

“Canadians spend more on housing”

The reason it’s 43% is Canadians double up and lump sum their mortgage payments because they’re not tax deductible like in the US.

The Man
Guest
The Man

Re: #10

Ah, the old ‘rumour of a rumour’ tactic. Create a rumour, associate it with your opponent, and then demand that they denounce it, thereby admitting that they were associated with it in the first place.

Oracle
Guest
Oracle

The compass card fiasco is planned. These cost overruns happen by design because they can. No accountability.

Someone is laughing all the way to the bank.

If you think otherwise, the joke is on you. These people know exactly what they are doing. Yet the sheep call them dumb.

Oracle
Guest
Oracle

The world is awash in money.

Apple is worth $700 Billion CDN dollars. Think about that.

S&P over 2000. Wow.

UBER worth $$20 Billion.

A Surrey lot worth $ 600 thousand.

The situation is too much money chasing limited number of assets. Thus asset prices rise.

Did you know we have 1665 Billionaires in the world now?? More than double 5 years ago.

The asset prices are not about you anymore or your yearly incomes. Until you realize that, you will hate my post.

I first realized this when in India I realized that about 80% of the population have been priced out of owning assets like cars and RE. Yes, in a democracy.

Brian Ripley
Guest
Brian Ripley

QUOTE “It’s (Canada’s Housing Market Defies Doomsayers) one of the side-effects of keeping interest rates low, as Bank of Canada Governor Stephen Poloz acknowledged in front of a parliamentary committee late Wednesday.” (from #6 above)

As I posted recently “Supply side lending (negative rates in the Eurozone) is not producing private sector demand for borrowing. Borrowers get quickly fatigued when prices are not rising, and without price inflation, aggregate demand drops and economic growth stalls.”

http://www.chpc.biz/history-readings/supply-side-failure

Low rates by themselves are not an incentive to borrow. The market needs rising prices to create demand. I suspect October housing data in Canada will be muted until we get to 1Q 2015.

Oracle
Guest
Oracle

George,

Agreed. They should get rid of the 3 zone system. Should only be one fare like Toronto trasit system serving 2.5 million people.

But people in Vancouver will freak out. Surrey people are sheep. They readily bend over.

Fare should be $3 – 4.

Simple

But then someone doesn’t get a paper bag full of $$

Son of Ponzi
Guest
Son of Ponzi
Son of Ponzi
Guest
Son of Ponzi
VanRant
Member
VanRant

Todays corruption news; “Chinese authorities seized more than 200 million yuan ($33 million USD) in cash hidden at the home of a Beijing official under investigation for alleged corruption, officials said Friday. It was reportedly the largest cash seizure ever in China’s massive anti-corruption campaign under President Xi Jinping.

Wei Pengyuan, deputy chief of the coal bureau within the National Energy Administration, had so much cash in his home that authorities broke four of the 16 cash counters they brought in to count the money.”

VanRant
Member
VanRant

@ 19

Could have been a lot of suitcases coming to Canada.

space889
Guest
space889

@patriotz – Here is a tip for you, research before you post! Geez…it is well known that Translink does not pay for an entire skytrain line by itself. The bulk of construction costs generally comes from Federal and Provincial coffers along with MetroVan cities. For the UBC line, I think Translink has to come up with something like $350 to $400M which means that $200M covers about half of its required payment. UBC line would do much more for public transportation and road congestion than the compass card.

rocknrolla
Member
rocknrolla

George, good post and thoughts, but put some paragraph spacers in there to easily catch a readers eye.

The skytrain/bus system has been running reasonably well over the last generation with the zone system. The $200M compass fiasco is just hilarious – no better way to describe it

patriotz
Member

@14: “I first realized this when in India I realized that about 80% of the population have been priced out of owning assets like cars and RE.”

Like the average person in India could ever afford either?

@ Son of Ponzi
Guest
@ Son of Ponzi

LMAO

the chinese candidate is against chinese only signs, and the white mayor doesn’t want to do anything about them.

What the?
Guest
What the?

Fast ferries cost around 450 million dollars and the government was able to write off 50 million as a loss
Perhaps that were the poster got the 50 million figure from
Remember that it required training of lots of specialized aluminum welders (aluminum welding is difficult)

That said it seems that 200 million for them compass cards is a lot even with inflation

I do not use transit but I agree a single zone system would seem be simpler and cheaper to enforce

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