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Danielle Park

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Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

April 23rd, 2019 | Canada Maxed Out

Juggling Dynamite - A decade of ultra-low interest rates and lax lending enabled Canadians to borrow and spend their way into a state of extreme financial fragility.  Today Canadian households are world leaders in terms of average household debt that is 180% of average disposable income (second only to Australians at 200%), and a household saving rate that […]

Juggling Dynamite - This clip offers a good update on issues affecting the Australian property market, households and the economy overall.  There are many parallels to Canada as well. When it comes to housing bubbles, the bigger the bubble, the bigger the pop. That’s what Australia is probably experiencing at the moment — A large deflation that isn’t […]

Juggling Dynamite - Recycling non-biodegradable plastics into other non-biodegradable plastics is a stop-gap measure. The solution requires us to greatly reduce the use of plastics and require that the ones needed be made out of biodegradable materials.  Time to speak up and act. We consumers accepting this packaging are enabling its demand. There is no doubt Australia is […]

Juggling Dynamite - This presentation at WORLD MINDS MOBILITY is on the world’s first electronic, autonomous personal aircraft, the prototype is already here. Here is a direct video link.

Juggling Dynamite - Extreme monetary accommodation and share buybacks have extended the last three economic expansion cycles since 1991, but magnified savings and investment deficits through the economy at the same time.  For one important example see WSJ:  Long Bull Market has failed to fix Public Pensions. Pension liabilities (in yellow below) have compounded faster than assets (in blue) […]

Juggling Dynamite - Low-interest rates, lax-lending and speculative fever, drove a boom in property demand, size and opulence over the past decade in most of the world’s major cities.  Now home prices are unaffordable for most and debt is maxed out everywhere, just as aging owners are looking to cash out and lower expenditures en masse.  The predictable […]

Juggling Dynamite - At 1.1%, the Canadian savings rate is today near all-time lows, while Canadian debt is at all-time highs, and unemployment is set to move higher. Years of reckless financial policies have driven Canada to the point of hard return.  This one is gonna hurt. As observed by Canadian consumer credit expert Scott Terrio this morning: No […]

Juggling Dynamite - As always, intolerance from consumers is a critical part of driving change.  This requires thinking people to actively seek alternate products and producers that minimize plastic packaging, as well as bringing our own containers and bags to stores and leaving plastic packaging piled up at the checkout where necessary.  When it happens enough, store managers […]

Juggling Dynamite - Better Markets (BM) describes itself as a “non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again”. Eleven years in, BM continues to catalogue ongoing […]

Juggling Dynamite - Canadian financial shares make up 38% of the market cap of dividend-paying stocks in the broader TSX composite which most Canadian equity funds, managers and pensions are benchmarking. Lower credit-cycle exposure in the last two bear markets resulted in 40% and 55% losses (2000-02 and 2008-09) for Canadian bank shares, and the overall Canadian market […]

Juggling Dynamite - About those world-famous-sky-high Canadian home prices that have helped drive record debt enslavement for Canadian households that will cost our economy for years to come…there’s an even darker side to some of the price-indiscriminant buying–money laundering proceeds of crime.  That’s right, cash from the debilitating opioid epidemic and other crime rings can be directly traced […]

Juggling Dynamite - Financialization, share buybacks, the shareholder primacy mindset, decades of tax cuts and government bailouts for ‘too big to fail’ companies, have all worked to socialize costs and subsidize a tiny fraction of the population at the expense of the rest.  Systems that don’t self-correct end up imploding one way or another.  Prior eras of extreme […]

Juggling Dynamite - Canadian insolvencies are on the rise as their debt comes home to roost. For more on this and why the piggybank is empty for some Canadians looking to borrow against their home, BNN Bloomberg spoke with Keith Emery, operations director at Credit Canada. Here is a direct video link. Meanwhile, a Stats Can report this week […]

Juggling Dynamite - Not only are drug traffickers and other criminals enabled, and needed tax revenues avoided, but investigators confirm that money laundering flows have been a significant factor driving up the price of real estate and related services (and thus the debt for Canadian households), as well as auto sales and luxury products, far beyond the means […]

Juggling Dynamite - So far, Toronto sellers have been holding and hoping that 2017 prices will bounce back, but with clamp downs on money laundering and foreign inflows, the large inventory of properties priced over $2m are less in demand. And with the majority of baby boomers over-housed, undersaved and looking to downsize, there is little reason to […]

Juggling Dynamite - This morning we learned that US private payrolls posted another disappointing month in March as the job market continued to slow, and Deutsche bank analysts warn that order backlog growth at Caterpillar–maker of earth movers and construction equipment and global-growth bellwether– appears to be turning negative. Negative back-log growth historically precedes a negative earnings revision cycle by […]

Juggling Dynamite - The largest headwind for Canadian households, lenders and the economy in 2019-20 is the same force that worked as a tailwind in the decade before:  real estate.  Naturally, the leaders of the boom years–the greater Vancouver and Toronto areas– are now also leading the deflation cycle. And a popular plan to ‘list this spring’ suggests […]

Juggling Dynamite - This presentation is good big picture for Australia but also Canada and other bubbling global asset markets. A look at the overseas data and long term Australia house price data, and what it can tell us about the future of the Australian property market. Here is a direct video link.

Juggling Dynamite - Canada is attracting international attention for our garish household debt levels.  Not a good thing to be famous for! What a difference a decade of lax lending and low rates makes.  In 2008, we were one of the countries that looked relatively prudent in our finances.  That was then.  See:  Canadians are Feeling the Debt Burn. […]

HoweStreet.com Radio - Any safety nets if markets take a tumble?

Juggling Dynamite - On Friday, markets were spooked when the yield on the US 3-month treasury bill rose to 2.44% while the 10-year treasury yield moved below it to 2.38%.  Since investors normally require higher yields for loaning money over longer terms than shorter, this ‘inverted’ yield spread signals a belief that the economy is heading south, and […]

Juggling Dynamite - Taking a float plane between Vancouver and Vancouver Island is a very memorable Canadiana experience.  Moving about that magnificent backdrop with quiet, non-polluting electric engines, is next level awesome.  See:  Harbour Air to convert all its seaplanes to electric for the first all-electric airline: “Seaplane operator Harbour Air and electric aviation company MagniX have announced plans […]

Juggling Dynamite - Born between 1981 to 2000, Millennials now average 26 years of age, and comprise about 27% of the North American population. This generation is coming of age in precarious financial circumstances. Their elders have led them poorly and allowed debt-sellers and other predatory business models to prey on the young. For a brighter future, we need […]

Juggling Dynamite - I have been pointing out for a few years, that two decades of falling interest rates and rising real estate prices enabled much malinvestment in oversized, expensive-to-maintain homes, that an aging population will want to downsize.  This is happening now. When the Greenspan-led, US Fed first turned a blind-eye to ‘irrational exuberance’ in financial markets […]

Juggling Dynamite - Yesterday after the close, the largest global courier delivery service, Federated Express (FedEx), warned of weaker than expected earnings and revenue for the second time in six months. In response, the shares have fallen 37% since January 2018 and 5% today alone.  This is not a FedEx only story–management explained that the global economy is slowing all […]
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