An evening with Mr. Wonderful
https://www.dropbox.com/sc/5kmh2j4nxoxazuk/itCAuJIftj No introduction required, Mary and I were at a function withKevin O’Leary last week, infamous for his role in Dragons Den and Shark Tank. IronicallyKevin was supposed to be the premier speaker at our national mortgageconference in Vancouverlast November, when at the last minute the sponsor pulled the plug and Kevinwas replaced. The reason, Kevin has entered the Mortgage Broker market, and itappeared the sponsor got nervous about his presence and foray into our market,the same sponsor who has Don Cherry as their spokesperson, go figure. Salient points: I'm not a tough guy. I'm just delivering the truth and only the truth and if you can't deal with it, too bad. I'm not trying to make friends; I'm trying to make money. Money equals freedom, (this is what drives people and what people love to see on Dragons Den). Kevin only invests in products that pay a dividend. Never spend the principle just the interest. When I asked if Finance Minister Flaherty went too far with the Mortgage Rules changes, he agreed but indicated we should all be concerned about the possibility of a Canadian Housing Bubble! Great evening, he is everything that he appears to be,brutally honest, and bottom line driven. Love him or hate him, he tells thetruth!
Canada: Residential sales reached a new record in September
Seasonally adjusted home sales rose 0.9% in September to a monthly record of 56,422 units. Sales in Ontario missed Augusts record by a hair due to a 5.3% monthly decline in Toronto. Records were nonetheless registered in Ottawa and Hamilton. In the Province of Quebec, sales were at a record level in the Quebec CMA and in Gatineau, and close to August records in Montreal. In B.C., transactions reached a record outside the three main markets of Vancouver, Fraser Valley and Victoria. There were also sales records in Nova Scotia and New Brunswick. The active-listings-to-sales ratio indicates that the Canadian home resale market was favorable to sellers in Ontario Quebec, the Maritimes Provinces and marginally so in B.C. The market was balanced in the four other provinces.
PROMISES, PROMISES AND MORE PROMISES
Canadas Parliament re-convened today with a ceremonial Speech from the Throne delivered by the Governor General.
Canadas continued response to the COVID-19 pandemic took centre-stage, while providing a lens for a plethora of broader promises: an extension of the wage subsidy, expanded employment insurance, investments in childcare, reaffirmed commitments to universal pharmacare, and green infrastructure investments among many others.
Given the exhaustive list of priorities, this Speech is unlikely to bring the minority government down as it provides plenty of hooks for negotiations in the lead-up to a Fall update where details will be laid out.
It clearly signals more fiscal spending ahead for Canada leaving the question not if but how much. But this was largely channeled ahead, so the market reaction has been mutedor more likely, it is eclipsed by broader US and global developments.
There is little beyond lip service by way of fiscal restraint. This will be left to the Finance Minister to make inevitable trade-offs in her first budget this Fall, particularly as she may need to reserve some firepower for second waves.
Source: Scotiabank https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.fiscal-policy.fiscal-pulse.federal.federal-budget-analysis.federal-throne-speech--september-23--2020-.html