Does it matter if it is called “Bailout or Liquidity” Support?

Excerpts: Financial Post wrote:
“Where MacDonald says “bailout,” a financial ministry official says “liquidity support” While MacDonald said the government tried to hide the numbers even from Access to Information requests, the official said the bank funding was “clearly, publicly laid out – repeatedly.”

Read more:
https://business.financialpost.com/news/fp-street/did-canadian-banks-receive-a-secret-bailout

Moving forward to 2015-2016 (7 years later):
The federal government thereafter confirmed its intention to proceed with a bail-in regime in both the 2015 budget and, following the change in government, the March 2016 budget. What they call a “Bail-in” You need to understand the Bail-In and how it can affect you and your family
https://theripregistry.ca/bank-bail-in-c15/

It is important to note:
The 6 major banks include National Bank (referred to as D-SIBs) are too big to fail which cannot be come bankrupt and liquidated without imposing significant costs to the economy.

In particular, Division 5 contains three main components that establish and implement a bail-in regime for Canada:

• the maintenance, by D-SIBs, of a minimum capacity to absorb losses;
• the ability of the Canada Deposit Insurance Corporation (CDIC) to control a D-SIB on a temporary basis; and
• the ability of the CDIC to recapitalize a D-SIB by converting its non-common shares, subordinated debt and prescribed senior liabilities into common shares.

What is CDIC (Canada Deposit Insurance Corporation)

Deposits held in an RRSP

Here’s an example of a portfolio within a RRSP – and what does (✓) and does not (✗) qualify for CDIC coverage:

• $ 10,000 in a GIC ✓
• $ 50,000 in a term deposit ✓
• $ 50,000 in stocks and bonds ✗
• $ 130,000 in mutual funds ✗
• = $240,000 of which $60,000 is covered.

What’s protected & why:

The GIC and term deposit are eligible deposits within an insured category – a RRSP. Eligible deposits within one category are insured for up to $100,000. So $60,000 of the $240,000 in total deposits is covered.

What’s not insured:

CDIC does not insure stocks, bonds or mutual funds, so $180,000 in those investments is not covered.

Deposits held in an RRSP

Hopefully this information will have you ask the important questions which will lead you to read more.
There is much to think about.
Do you have savings? Do you have locked in investments? Do you have a mortgage and equity in the property?

Should a bail-in occur, how are you protected? Each individual has to evaluate their own investments and products in their portfolio and see how the CDIC, the Bail-In and other Federal arms of the government can impact you them, either positively or negatively.

This blog has been provided in order to have the doors open to asking more questions to your financial advisor, banker and/or educating yourself, based on your needs and concerns.

Select by province.

COVID-19 reopenings: Here are all the plans by province and territory to ease coronavirus lockdowns

5 Phase Out Dates

Government’s roadmap to ease Covid-19 restrictions will be set out in 5 phases. These phases will be on 3 week review process, the current phases would commence on the following dates:

Phase 1 – 18th May
Phase 2 – 8th June
Phase 3 – 29th June
Phase 4 – 20th July
Phase 5 – 10th August

If coronavirus cases begin to increase, we will revert to the restrictions set out in the previous stage.

🔮 PHASE 1 🔮

Phase 1 of the roadmap will lift the following restrictions:

🔸 Construction workers, landscape gardeners and other outdoor workers may return to work

🔸 Garden centres, repair shops and hardware stores may reopen

🔸 Fitness & sport activities (non-contact) in small groups (max of 4 people) may resume (golf included)

🔸  People may meet up with friends and family in small groups outdoors (size of a “small group” is defined as up to 4 people)

🔸 The majority of regular health services will resume 

🔸 Outdoor public amenities and tourism sites may reopen (beaches & mountain walks)

*NOTE – social distancing guidelines will remain in operation for all

🔮 PHASE 2 🔮

Phase 2 of the roadmap will lift the following restrictions:

🔸 Restriction will be extended from 5km to 20km

🔸 Specific retail hours will be allocated for those currently cocooning

🔸 Home visits will be allowed to those cocooning, by a small number of persons for a short period of time

🔸 Up to 4 people may visit another household for a short period of time

🔸 Slightly larger family gatherings at funerals will be permitted (limited to maximum safe social distancing can still be applied)

🔸 Solitary workers and workers that can maintain social distancing can return to work

🔸 Small retail outlets that can control staff and customer numbers and maintain social distancing may reopen

🔸 Public libraries will reopen

🔸 Outdoor sporting activities, involving small group training (no matches) can recommenced (no contact still allowed)

🔮 PHASE 3 🔮

Phase 3 of the roadmap will lift the following restrictions:

🔸 Commence opening of creches and pre-schools for children of essential workers

🔸 Commence a phased approach to visiting at hospitals and other healthcare settings

🔸 Businesses where employees have low levels of daily interaction may reopen

🔸 Phase in the opening of all other non-essential retail outlets, restricting customer numbers and applying social distancing (limited to retail outlets with street level entrance and exit, i.e. not in shopping centres)

🔸 Playgrounds will be reopened

🔸 ‘Behind closed doors’ sporting events may recommence

🔸 Cafes and restaurants may reopen as long as social distancing is maintained

🔮 PHASE 4 🔮

Phase 4 of the roadmap will lift the following restrictions:

🔸 Travel will be extended to outside of your region

🔸 Larger household visits will be permitted

🔸 Small social gatherings will be permitted (baptisms, small weddings etc.)

🔸 Creches and pre-schools will reopen for all other children

🔸 Other employees return to work – beginning with those who cannot work remotely and then staggering the working times to ensure social distancing 

🔸 Barbers and hairdressers may reopen

🔸 Museums and other cultural outlets may reopen

🔸 Sports teams (GAA & soccer) may recommence and public swimming pools may reopen

🔸 Hotels and other hospitality units may reopen based on limited occupancy. Hotel bars are to remain closed.

🔮 PHASE 5 🔮

Phase 5 of the roadmap will lift the following restrictions:

🔸 Social gatherings will be permitted except for large gathering and gatherings in households of suspect cases

🔸 Schools and colleges will reopen on a phased basis and will recommence in the new academic year 

🔸 Normal hospital and other residential setting visits will be allowed

🔸 All employees may return to work on normal onsite arrangements, except organisations that cannot maintain social distancing plans

🔸 Enclosed shopping centres may reopen

🔸 Tattoo and piercing parlors may reopen

🔸 Cinemas may reopen

🔸 Close contact physical sports may recommence (rugby, boxing etc.)

🔸 Gyms and dance studios may reopen

🔸 Mass sporting events may recommence where social distancing can be maintained

🔸 Indoor recreational venues may reopen (bowling, bingo etc.)

🔸Small festivals and other outdoor cultural events may resume

🔸 Tourist travel to offshore islands may resume.

The Canada Emergency Commercial Rent Assistance Program

I’m not sure if I read this correctly but if you look at the RENT FORGIVENESS section of the link below, you will see why many landlords are not opting to apply for the 75% Rent Forgiveness to help there commercial tenants.

Let me spell it out as I read it. To qualify and be eligible for CECRA (Rent Forgiveness), you need to have a mortgage loan secured by a commercial property. It has many other stipulations that could make you un-qualify and you need to enter into a well written agreement with your tenant, ensuring you have all the terms and conditions noted. It is very important to find out what these specifics are prior to entering into this Rent Forgiveness. (the link below will provide more information).

One major concern and what I am thinking if I understand it correctly is as follow:

Scenario: If I have a mortgage on a commercial property and I qualify meeting all the stipulations which will be difficult to meet in of it self, the calculations are below.

If my mortgage is $1500 and my tenant pays me $2700, I will not get 50% of the $2700 but 50% of the $1500 (my mortgage/cost). This equals to $750.

The way it looks like it has been positioned is 25% the tenant, 25% the landlord and 50% government assistance.

However this doesn’t seem to be the case based on my calculations below:
Tenant Pays 25% = $675 (25% of $2700)
Government Assist = $750 (50% of Mortgage payment)
Landlord Difference = $1275 ($2700 – $675 – $750)
(Looks like as a landlord it will cost us 47.25% almost 50% of our rental income.)
Based on this, the Landlord will be absorbing and losing 47.25% of the rental income. (See link below for details)

http://www.mondaq.com/canada/landlord-tenant–leases/930802/rent-relief-update–the-canada-emergency-commercial-rent-assistance-program

These five items in your kitchen could be sabotaging your ability to manage your weight and may be dangerous to your health.

I received this email and was giving a quick simple list. below are the excerpts. We all use these in our kitchens. Check them out:

1) Cookware. Are you using pots and pans with the nonstick coating? If so, you are subjecting yourself to what’s called persistent organic pollutants. These chemicals are not only tough on your body, but they are also hard to eliminate once they’re in your system. And because they get stuck in your body fat, they can cause you to gain weight. Just take a look at the recent documentary: The Devil We Know which showcases the decades-long Teflon chemical scandal and cover-up. Stick to stainless steel, cast-iron, ceramic and porcelain for your cookware and always avoid non-stick chemical coatings.

2) Tupperware. While it is convenient to throw your leftovers into Tupperware, it’s not the healthiest. Most Tupperware is made with the industrial chemical BPA. BPA is a known gut disruptor that research has shown can seep into your stored food. You already know how important it is to keep your gut happy in order to maintain your weight. I suggest using glass containers instead.

3) Dish Soap. Take a close look at the soap you are using at home. If it’s got the antibacterial ingredient triclosan, then it could be making you fat. According to a 2013 study published by Stanford University, people with higher levels of triclosan in their urine were more likely to have a higher body mass index. This is probably because antibacterial products destroy the good bacteria in your gut.

4) Microwave. This is another modern-day amenity that is causing us harm. Microwave ovens expose you to electromagnetic fields that scientists in China have reported can lead to fatigue and depression. These are two big hurdles if you’re trying to lose weight. On top of that, some researchers believe heating food in the microwave reduces its nutritional value. It may not be as quick and convenient, but using your stove could help you shed some pounds.

5) Tap Water. I hate to tell you this, but that water coming out of your kitchen sink is probably full of chemicals and toxins that will feed the bad bacteria in your gut. Tap water is also known to contain heavy metals like lead and it is chlorinated in order to eliminate dangerous bacteria, viruses, and parasites. To be sure you’re not introducing any of these gut disruptors into your body, make sure to filter your water before drinking.

Yours in Good Health, Dr. Vincent Pedre

How You May Benefit from a TFSA
The Tax-Free Savings Account (TFSA) is an account that does not apply taxes on any contributions, interest earned, dividends, or capital gains, and can be withdrawn tax free.

Because your TFSA is more than just another savings account, you can use it to:
• Save even more if you have limited contribution room or maximized your Registered Retirement Savings Plan (RRSP) contributions
• Create a tax-efficient income stream in retirement, especially if you have excess Registered Retirement Income Fund (RRIF)* or pension income
• Take advantage of additional income-splitting opportunities with your spouse
• Add to your existing long-term investment strategy – tax-free

Annual TFSA Contribution LimitsThe latest increase for 2019 was recently announced and can be found on the government website for personal tax limits indexed to inflation. Future contribution limits are indexed to inflation rounded to the nearest $500. I would estimate the 2020 TFSA limit to be at $6,000 again. read more