Random Thoughts

Stats Canada published their Labour Force Survey, August 2016 last Friday and the numbers continue to underwhelm, if not discourage folks. While employment is up 26,000 jobs, unemployment rate is up 0.1% as well, leaving it as 7.0%.

I always look to see what kind of jobs are being created, and this line from the report is quite telling:

Compared with 12 months earlier, employment increased by 77,000 (+0.4%), with all of the gains in part-time work. Over the same period, the total number of hours worked fell slightly (-0.4%).

So more folks working part-time jobs is not a ringing bit of good news for the current economy.  The types of jobs being created is also telling:

There were more people working in public administration, and fewer people working in professional, scientific and technical services.

More admin folks, is that a good thing? For me I am glad there are more folks over 55 finding jobs, but us old folks clogging up the market can’t be good for the young folk looking for work.

CBC Newsworld launched a new show about money, On the Money, looks to have regular contributions from many friends of this humble site. It uses Flash Player for its videos (CBC should really get to HTML 5).

Stats Canada also reported on Household Net Worth this week, and as you might guess there is more debt out there.

The household debt service ratio (seasonally adjusted), measured as total obligated payments of principal and interest as a proportion of disposable income adjusted to include actual interest paid, increased from 14.1% in the first quarter to 14.2% in the second quarter. The interest-only debt service ratio, defined as household mortgage and non-mortgage interest paid as a proportion of disposable income, was 6.3%.

Let the media storm around this data commence!

My Writings for Week Ending September 16th

Seems to be RESP season these days, but if you have kids, are there any times when RESP Sometimes Doesn’t Make Sense ? Yes, but only in obvious areas that you can already guess about. It is free money after all.

A Money Thought

Have I mentioned that text books are expensive lately ?

The things we really need are getting more expensive. Other stuff is getting cheaper. Why? https://t.co/jTUSe9poM7 pic.twitter.com/7ZyXkoy8TP

— World Economic Forum (@wef) September 10, 2016

Read More »Unemployment Up, On the Money, Debt and #MoneyTalk

In this 2016 financial snapshot, we explore Canada’s tuition cost increases, the economic implications of loose money policies by the Bank of Canada, and how distractions like iPhone 7 launches pull focus from bigger financial issues. Featuring thoughts on CCB impacts, textbook expenses, and provincial cost disparities. Keyword: tuition costs in Canada

Last week, we said goodbye to the Olympics and as well, to the Tragically Hip. I was never a rabid Hip fan, but I enjoy a great deal of their music (and if you listen closely to the lyrics, you might just learn something about Canada). Some might say, life goes on , but that doesn’’’t mean we can’’’t feel sadness about the passing of time. Also, the summer is also almost over.

How much are you willing to pay to save your life? The entire price of EpiPen silliness in the U.S. really does make me wonder if big drug companies assume they are like banks and can charge whatever they want, and there will be no repercussions. As a stockholder in Pfizer (still) I suppose I am a hypocrite for making that comment. However, Pfizer’s big money-maker is still Viagra, and if you want to gouge men who want to have a drug which has a possible side effect of “… an erection lasting more than 4 hours…”, then so be it.

I was disturbed to read the Ontario Ombudsman’s report “Nowhere to Turn”, where the Ombudsman called for systemic overhaul to help adults with developmental disabilities in crisis. The quote in the report that concerns me is:

There is still marked inconsistency in how limited funds are prioritized and distribute and families struggle with interminable waitlist delays, leaving some so desperate that they have abandoned their loved ones.

Ontario Ombudsman

My Writings for Week Ending August 26th

I started the week writing about inflation, and the arithmetic cogitations that make the numbers appear good, but the calculations that tell a different story, with Electricity Prices Continue to Sizzle in July. Electricity prices continue to go up (especially here in Ontario), while gas prices appear to be dropping which are nullifying the effects of the electricity price jump. Fun with Numbers.

I also had a lovely conversation with one of my favorite folks, Kerry from Squawkfox, and she was doing research for some work she is doing for the Globe and Mail. The topic of RESPs came up, and I remembered that I had started an article RESP Proof of Enrolment and its importance to the cashing out of the RESP funds, so I finished that one off. I typically get inspired when I chat with smart money folks, so thanks Kerry.

An Excellent Question

An interesting question from a follower:

@bigcajunman RDSP for special needs kids – why haven't you opened an account? $11,000 is up for grabs in the 1st yr. pic.twitter.com/PUU7Ivdnyg

— Punch McKully ?? (@kayaking_canada) August 24, 2016

Read More »Farewell, EpiPens, Ombudsman Report and #MoneyTalk

Early retirement seems to be the battle cry of the 30 year olds these days. Why? What are you going to do? Get out of debt at 30, that is a noble goal.

Suppose you devised a plan to get the UK out of the EU, and it worked. What would you do? If you are Boris Johnson or Nigel Farage, you quit (while you are ahead?). After pulling off one of the more memorable upsets in the past little while, the two prominent faces of the Brexit crew have resigned, and now the UK has very little leadership on either side (having lost Prime Minister Mr. Cameron earlier on, and the Labour Party Leader seems to be under siege as well). Who has the rudder on the excellent ship Brittania? I don’t know, but the markets suggest they are not happy with the current situation. Now might be the time to book a vacation in the UK this summer?

More than once, I have written about how children should aspire to stop living with their parents as soon as possible, and for some, that has been construed as Millenial Bashing (to quote Rob Carrick), and while it does sound like harsh advice, I stand by the statement. Do you know how you learn to live on not much money? By living on not much money (and not living in your parent’s basement, claiming you are saving up for a down payment). My opinion is there are not that many more youngsters are doing this, but the mainstream media has latched onto it, as their cause celebre of the year. If you want to read an excellent book about Millenials and how much better than they are than all previous generations, read Grown Up Digital: How the Net Generation is Changing Your World (amazon link), well worth reading. My parents complained about me watching too much TV, and yes, I lived with them when I went to University too (for full disclosure).

I was sad to see that the Welsh Football (soccer) team lost in the semi-finals of the European tourney to Portugal, but it is an astounding result for the team (not quite as impressive as Iceland, but still pretty darn good). As I have said, I am the proud son of Welsh and English immigrants, glad to see Wales soccer is improving (Welsh rugby has been severely pounded by New Zealand, unfortunately).

My Writings for Week Ending July 8th

Another week with only 1 article, but hey, it was a long weekend, and it is the summer. I could be like the Blunt Bean Counter and leave up a Gone Golfing notice. More than one person has asked me whether I might be downsizing, as 3/4 of my kids are old enough to move out, but I am not thinking of it (for the next little while). My opinion is that Down Sizing: Another Money Maker for Real Estate Agents, remember it used to be you bought a starter house, and then the one you were going to live in for the rest of your life, now they have added one more major Real Estate transaction, Downsizing! It’s like McDonald’s creating a new meal Brinner (about 3 PM when you are hungry for a snack, have a Big Mac!).

Inflation?

Bank of Canada has some theories for the next two years on the topic of inflation.

Expectations for inflation over the next two years are largely within the Bank’s 1-3 % range pic.twitter.com/sEmN0UvSCi

— Bank of Canada (@bankofcanada) July 4, 2016

Read More »Brexit Market Mayhem, Millenial Bashing and #MoneyTalk