Slowly we attempt to return to a semblance of normalcy, in our new COVID19 dominated world. In Ottawa, most businesses are “open” but under strict rules about distancing and masks are to be used pretty much everywhere.
Don’t expect Interest rates to go up any time soon.
The Bank is also continuing its quantitative easing (QE) program, with large-scale asset purchases of at least $5 billion per week of Government of Canada bonds.
Bank of Canada July 2020 Monetary Report
They are ready to react if Inflation occurs, but it sounds like they are not expecting that any time soon. Cheap credit continues on.
Not sure about the whole kerfuffle about wearing a mask. I wear it to protect my family and to protect the folks I interact with. Why folks are yelling at minimum wage employees of firms, is beyond understanding.
Can we nominate Dr. Fauci for President? Asking for a friend. Border being closed is good for Canada overall, but bad for tourism and those towns that rely on our American visitors.
On the topic of masking, my battle against unwanted email continues. I have not slain the dragon but it is wounded and my influx of spam has slowed.
The median age in Canada is 40.8 years old? I was not aware of that (the data is from July 2019). Seems like the country is not aging nor is it getting any younger.
Of those old folks most of them are Baby Boomers too. Stats Can’s definition of a Boomer is born between 1946 to 1965. That is interesting because for the longest time I wasn’t a boomer, but now I am included in them. I don’t know if that is a good thing or not?
| Inflation (year over year May 2020) | -0.4 % |
| Bank of Canada Overnight Rate July 17th | 0.25% |
| Unemployment Rate (as of June 2020) | 12.3% |
| Real GDP By Expenditure (Q1 2020)(quarterly change) | -2.1% |
| Population of Canada (Est April 1, 2020) | 37,971,020 |
| CIBC current prime rate | 2.45% |
| BMO current prime rate | 2.45% |
| Scotiabank prime lending rate | 2.45% |
| TD prime lending rate | 2.45% |
| Tangerine prime lending rate | 2.45% |
COVID19 Data Canada
Click here to find an up to date graphic from the Government of Canada
| Total Cases | 109,264 |
| Total Deaths | 8,827 |
Past Writings
Thanks to a bad tooth infection I have been distracted with other things. It is slowly being repaired, but I will hopefully have an implant to replace the missing teeth soon.
- Is the RESP Only For the Rich ? That is what Stats Canada is stating, and I am not surprised. So few banks want the business of lower income Canadians in this area. How could this be fixed? More incentives for Lower Income Canadians, and maybe some for banks to help them open accounts?
- I have revamped my Registered Disability Savings Plan page, as it was a bit too cumbersome, so now it is broken down by categories.
- My plan is to do the same for my Registered Education Savings Plan page as well.
The Economy Limps Forward
While businesses slowly reopen, can they survive in this environment? That remains to be seen. Real Estate, however, continues to defy logic, in terms of market elasticity.
- A friend sold his house about 3 weeks ago. He already had purchased his new home, did some work on his home, and then put his house up for sale. The sale, turned into a bidding war, which meant the house sold for $90K more than asking price. The purchasers had lost 3 previous bidding wars, and were determined to win. Evidently houses are now being sold before they reach the market, agents simply put up a “Coming Soon” sign on the front lawn, and the houses are selling privately. This is a very odd world we are living in.
- Defined benefit pension planning. Bad advice could cost you your retirement, is a very good discussion of how some advisors try to get you to cash in your pension, so they can make money off trading things. I cashed out my Nortel Pension, but that was because both my wife and Michael James thought it was going to collapse (they were correct).
- Think Twice Before Taking a 5-Year Closed Mortgage is Michael James giving you some solid advice, it is up to you whether you follow it or not. As usual the system is rigged to stop you from paying things off quickly, look very closely at the penalties involved.
- Patriots’ Joejuan Williams lives off 10% of his income and says a high school finance class taught him how to save, which shows that a few of the professional athletes figure out the value of the money they earn, and the risks of losing that income.
- An interesting perspective in Money Matters with Nimi: Hey Amazing Mums Doing This Parenting Thing Alone… Here Are Some Great Money Tips! A new site, but worth checking out on occasion.
Tweets of the Week
I have said, Don’t Click That, before, I guess some folks will do anything if a Celebrity tells them to on Twitter.
For those who thought that somehow the Financial Industry was an ethical place.
An interesting perspective from our friends in Reddit.
Random Thoughts from the Past
- Happy Canada Day #MoneyTalk (July 1st)
- Fathers Day , COVID, Unsubscribe & #MoneyTalk (June 19th)
- Boxing Tuesday, Opening Up and #MoneyTalk (May 16th)
- Opening up, May Day, COVID19 and #MoneyTalk (May 1st)
- Unemployment Spikes, Easter and #MoneyTalk (April 11th)
- Covid-19, Stay Home and #MoneyTalk (March 27th)
- Dusty Typewriters and #MoneyTalk (November 8th)
- March Madness and #MoneyTalk (March 30th)
- Lent Begins and #Moneytalk (March 6th)
