Friday, September 15, 2017

Short Takes: Mortgage Delinquencies, Indexing Distortions, and more

Here are my posts for the past two weeks:

What’s Your Income


Here are some short takes and some weekend reading:

Scott Terrio, a licensed insolvency trustee explains why low mortgage delinquency rates aren’t a good sign. He says “the low delinquency rate will catch up with the reality of Canada’s overburdened households.”

Lawrence B. Siegel explains why “indexing doesn’t distort anything.”

Reporter Sara Mojtehedzadeh went undercover working in food production for a temp agency. Her story contrasts sharply with the claims made by her employer about working conditions. Strangely, she had to collect her pay from a payday lender.

Patrick McKenzie has some interesting and authoritative advice on what to do if someone creates credit accounts in your name. These things can lead to long-lasting problems if you don’t handle them correctly. Unfortunately for Canadians, some aspects of this advice are specific to Americans. I’d be interested in comparable advice for Canadians.

The Blunt Bean Counter gives his perspective on proposed new tax rules for private corporations.

Squawkfox goes through the ways that the recent interest rate hike from the Bank of Canada can affect you. The main effects are interest rates on debt. She observes that banks aren’t usually very quick to increase the rates they pay on savings accounts and GICs. I wonder how long it will take for higher interest rates to change annuity payments.

Dan Bortolotti summarizes a study of ETF investors. It turns out that they handle their ETFs poorly for a couple of reasons.

Big Cajun Man says if you try to take some form of loan from a big bank, they’ll try to get you to open a chequing account as well.


  1. Just a personal note, I stopped reading the new Moneysense on-line postings when they turned off all the comments.
    It's become an advertising platform where the communication and opinion is only one way.

    The comments about about the average person investing in ETF's wrongly would carry more weight if the author did not work for PWL Capital. (which makes money on people investing with them via commissions for... wait for it...managing their ETF's) For a mere
    1% on top of the low ETF fee's, negating the whole concept of low cost investing and avoiding high fee mutual funds. Isn't that ironic?

    1. @Paul: I understand your frustration. I've been disappointed over the last several years at the number of good bloggers who've mostly stopped blogging and the remaining ones that seek only maximum income by pretending advertising is real content. Moneysense has its failings, but I find it still better than most. As for Dan Bortolotti, I don't see much evidence yet that he's succumbed to conflicts of interest. PWL Capital is so much better than the typical way Canadians invest that I try to look past their costs (but not for my own portfolio).