Canadian tax man and flipping property...caution!

On Sept. 6, 2012, in the case of Sylvie Giguère (tcc-cci.gc.ca), Ms. Giguère and her spouse lost a court battle on this issue. The couple had sold seven single-family residences within a six-year period, claiming the PRE on each sale.

In this case, they had owned the properties for periods ranging from just over three months to just under two years. CRA successfully argued that the profits should be taxed as business income and that, in addition, gross negligence penalties should apply for failure to report the income.

In this case, the court concluded that the intention of the taxpayers was to buy the properties and sell them for a profit, not to live in each property as a principal residence. This intention, along with the frequency of their “flips” led the court to the conclusion that, for this taxpayer, the real estate sales were an “adventure in the nature of trade.”

 The criteria

 If the taxman considers your activity to be an “adventure in the nature of trade” he’ll look to tax you on any profits as business income. In its publication IT-459, Adventure or Concern in the Nature of Trade, CRA says that: “It is a general principle that when a person habitually does a thing that is capable of producing a profit, then he is carrying on a trade or business notwithstanding that these activities may be quite separate and apart from his ordinary occupation.”

The court case Happy Valley Farms Ltd. (1986) established certain criteria as the benchmark for taxpayers and the CRA to consider when assessing whether an activity is an adventure in the nature of trade.

That decision established the following criteria to look at: (1) the nature of the property sold, (2) the length of the period of ownership of the property, (3) the frequency or number of other similar transactions by the taxpayer, (4) the work expended to make the property more marketable or to attract purchasers, (5) the circumstances responsible for the sale of the property, and (6) the taxpayer’s motive or intention at the time he acquired the property.

It appears that, in the case of the sale of principal residences, the courts and CRA look most closely at your intention at the time you purchased the properties and the frequency or number of times you’ve completed similar transactions.

If you’re going to buy and sell properties and you hope to use the PRE to shelter the properties from tax, be sure to look at the six criteria established in the Happy Valley court decision and structure your transactions accordingly.

Time to buy? Florida real estate on the rebound.

Vacation property prices is Florida are on the rise but there are still deals to be had.


Housing prices in the sunshine state are rebounding but there are still bargains to be had, according to a local realtor specializing in snowbird properties.

Residential real estate prices in South Florida have risen more than 4% in the last year, far outpacing the national average, according to the S&P/Case-Shiller Home Price Index. Still, prices are 45% off all-time highs seen in late 2006, early 2007.

The average condo in popular Southwest Florida now sells for $315,000 while the average single-family home now sells for $450,000.

Average selling prices can be skewed by a minority of very expensive sales and areas like Palm Beach, Naples and Miami are favourites among luxury buyers.

Vacation properties can sell for much less than the average. Indeed, the overwhelming majority of Canadian buyers spent less than $200,000 on their Florida purchase this past year while the median price range was $100,000-$199,000.

A portion of these were properties in foreclosure. In fact, these so-called “distressed sales” account for roughly 20% of total sales in Southwest Florida.

January through March is Florida’s busiest buying season as snowbirds from across the Northern U.S., Canada and Europe descend on the Sun Belt.

Itsy Bitsy Teenie Weenie Condo's

Squeezed between the mountains, the Pacific Ocean, the U.S. border and the Fraser Valley, where development on agricultural land is restricted under B.C. law, municipalities have been struggling to keep housing affordable near the core.

People were shocked when the first condo towers went up in downtown Vancouver in the 1990s featuring units of 450 square feet or less — about the size of a nice hotel suite and about half the size of a conventional apartment.

But a new development in suburban Surrey is pushing living space past the 300-square-foot barrier with so-called "micro suites," according to Les Sohar

The proposed project, called Balance, would contain 56 suites, the smallest of which would be 290 square feet, and 33 of the units would be 305 square feet or smaller.

The largest suite, a one-bedroom unit, would be a palatial 653 square feet and be priced below $180,000, Sohar.ca reports.

The developer said it expects to begin pre-selling the micro suites in January if Surrey City Council approves.

Affordability is the key, says Les Sohar or sohar.ca. Asking prices will start at $109,000 but, given the softening condo market in the Vancouver area, they may come down.

"If you can afford the $6,000 down payment, and you make a salary of $17 per hour, we have a home for you," Sohar says.

Balance, located in a once dodgy part of Surrey called Whalley, is part of a global trend, he says.

"Real estate prices in the Lower Mainland are among the richest in North America," Sohar said in a news release.

"In cities like New York, Tokyo and Paris they found a solution - build smaller but build closer to amenities. 

Top 15 fastest growing US cities.

The state of Texas is growing fast. The state has eight of the nation’s 15 fastest-growing cities and six of the top seven, according to the U.S. Census Bureau, which evaluated population increases in 2011 for cities with more than 100,000 residents. 

However, beating out Texas cities for the top spot, New Orleans came in at No. 1 on the list of fastest-growing cities. New Orleans has seen its population grow by nearly 5 percent from April 1, 2010, to July 1, 2011. 

The following are the 15 fastest-growing cities in that time period and the percentage population growth, according to the U.S. Census Bureau analysis:

1. New Orleans
2. Round Rock, Texas: 4.8% growth
3. Austin: 3.8%
4. Plano: 3.8%
5. McKinney: 3.8%
6. Frisco: 3.8%
7. Denton, Texas: 3.4%
8. Denver: 3.3%
9. Cary, N.C.: 3.2%
10. Raleigh, N.C.: 3.1%
11. Alexandria, Va.: 3.1%
12. Tampa, Fla.: 3.1%
13. McAllen, Texas: 3%
14. Carrollton, Texas: 3%
15. Atlanta: 3%

"These estimates provide our first look at how much the total population has changed in each of our nation’s cities since the Census was conducted in 2010 " says Les Sohar of soharworldhomes.com and Re/Max. "These numbers provide further evidence of a continuation of the trend of rapid population growth in Texas that was observed between the 2000 and 2010 censuses."

Meanwhile, the cities with the largest overall populations in the U.S.? New York continued to be the most populous with 8.2 million residents in 2011, followed by Los Angeles (3.8 million), Chicago (2.7 million), and Houston (2.1 million), the U.S. Census Bureau reports.

What's hot in Condo living?

When it comes to condos, staying on the cutting edge of style and decor is key. The general perception of what’s hot and what’s not can change daily, so choosing trendy yet timeless decorating styles and furniture pieces is the true challenge for the condo dweller. Always keep resale value in mind when you paint or make upgrades. Chances are, you won’t live in this condo forever and when you do sell, you want the place to be attractive to a wide demographic–rather than simply to those who share the same tastes you do.

What’s Hot:


Clutter-Free Living The choice to live in a condo generally means one must commit to living clutter-free. Although most condos have a storage locker and at least one closet, the space for storage is quite limited compared to that of other types of homes. That’s why it’s so important to adopt a Zen-like approach to clutter and possessions. If you don’t need it, sell it, give it to charity or throw it out. If you don’t know where you’ll put it, don’t buy it. Life is much easier without too much stuff, and condos are much more attractive when they aren’t packed with useless possessions.


Flowing Decor When decorating a condo, choose a theme and stick with it. Condos and condo townhouses are generally open-concept and fairly small, and introducing too many colour schemes will overpower the space. When painting, choose a colour that you can repeat–for example, paint your bedroom the same colour as your washroom to give the impression of an ensuite and then chose a lighter or darker version of the shade for the living area and kitchen.


Dramatic Wood Finishes It’s tempting to go with deep, dark paint colours when seeking to add drama to your condo decor, but particularly in a small space, this is not a great idea. Instead, stain the floors a dark oak or cherrywood finish. Cupboards can be outfitted with dramatic finish as well and furniture in rich distressed black stain is another attractive way to add depth to your decorating.


Streamlined Storage Maximize closet space by building shelves and installing closet organizers. Make every square foot count–even under the bed! Buy thin plastic storage boxes which slide easily into small spaces and use them to store seasonal clothing, wrapping paper, gift bags and more. Invest in drawer organizers and cupboard shelves, too.

Mortgage Amortizations pushed back to 25 Yrs., like it used to be.

The government has decided to thin the herd of buyers by lowering the maximum amortization period to 25 years from 30 for people who require mortgage insurance because of a small down payment. This means higher monthly or biweekly mortgage payments, which will keep marginal buyers on the sidelines until they either save more or make more. Most first-time buyers go with an amortization of 30 years today.
Moving to 25 years isn’t draconian , says Les Sohar of sohar.ca and soharworldhomes.com.,"that was the unquestioned standard for the decades that preceded the increased amortization periods introduced several years ago". The government is also putting limits on mortgage refinancings by capping borrowing at 80 per cent of a property’s value, down from 85 per cent.
The government could have been tougher here, says Sohar. In my brokerage, Re/Max this will have limited effects and I remain enthusiastic about the use of refinancings as well as normal market applications and has not contributed to high levels of indebtedness, directly.

Home ownership becoming more affordable - BNN News

Home ownership becoming more affordable - BNN News

House Prices Decline 2 Months In a Row - Canada

OTTAWA — Canadian housing prices were flat or falling in the last quarter of 2011, according to a house price index released Wednesday.
Home prices fell in December by 0.2% from the previous month, the second straight monthly decline following two consecutive months of flat prices, says a senior economist in his monthly report. The index was up 6.8% from December 2010, though the year-over-year advance had slowed somewhat from the 7.1% gain posted in November.
Home prices fell in December in nearly half of the 11 markets included in the survey, including Victoria, Ottawa-Gatineau, Montreal, Toronto and Vancouver. “For Ottawa-Gatineau, Vancouver and Victoria it was the third consecutive decline, and for Toronto it was the second,” Pinsonneault said. Prices in Edmonton were flat, while prices rose in Quebec City, Winnipeg, Hamilton, Calgary and Halifax.

The year-over-year gains in Toronto, Winnipeg, Vancouver, Hamilton and Quebec City all exceeded the national average. While the year-to-year price differences varied widely, “December was the first month since September 2010 in which all 11 metropolitan markets showed prices up from 12 months earlier.” Meanwhile, Pinsonneault said the Canadian Real Estate Association has determined market conditions are generally balanced across Canada, “the exceptions were tight markets in Toronto, Hamilton, Winnipeg and — suddenly — Halifax, and buyers’ markets in Vancouver and Victoria.”

RBC Down Grade, again?

Just over a year after it was initially downgraded, Royal Bank of Canada is at risk of another slash to its credit quality as Moody’s Investors Service reviews all major global banks with big capital markets divisions.

The rating agency has initiated a review of 17 banks and securities firms with global capital markets operations because it feels that the risks associated with these divisions “are not fully captured in their current ratings.”
More related to this story
Moody's weighs downgrade of Sun Life US
RBC downgraded by Moody’s
RBC’s rating put on watch by Moody’s

“Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions,” the rating agency said. “These difficulties, together with inherent vulnerabilities such as confidence-sensitivity, interconnectedness, and opacity of risk, have diminished the longer term profitability and growth prospects of these firms.”

“Rapidly changing risk positions expose these firms to unexpected losses that can overwhelm the resources of even the largest, most diversified groups.”

RBC was already dinged for its exposure to capital markets in December 2010, when Moody’s downgraded its credit rating to Aa1 -- which is stil a stellar rating.

But much has changed since then, and Moody’s thinks its worthwhile to re-evaluate.

“The combination of changed operating conditions and increased regulatory requirements and restrictions has diminished these firms' longer-term profitability and growth prospects,” the agency said. “While we had initially expected their standalone credit profiles to recover once the acute phase of the crisis had passed, we now view these challenges as structural features of global investment banks.”

In an e-mailed statement, RBC said it was “surprised” to be included in the review and the banks believe is inclusion “is unwarranted.”

“This action does nothing to help investors differentiate between strong banks and weak ones. RBC’s credit rating and capital base are among the strongest of all banks globally,” RBC said. “Over the past three fiscal years, our capital markets business has been consistently profitable and represents less than 25 per cent of RBC's earnings.”

10 of the 17 firms that Moody’s will inspect have been her placed on review for downgrade, or had their reviews for downgrade extended. Along with RBC (RY-T53.24-0.12-0.22%), the firms placed under review include U.S. giants such as Bank of America (BAC-N8.03-0.06-0.74%), Citigroup (C-N32.990.280.86%), and JPMorgan Chase (JPM-N38.480.481.26%).

Moody’s goes so far as to break the firms it will review into different categories, with some susceptible to one-notch downgrades, and others susceptible to more. RBC is susceptible to two-notch downgrades, while Credit Suisse, Morgan Stanley and UBS could all face three-notch downgrades.

CMHC 2012 Predictions.

Canada's housing market will remain stable for at least two more years, Canada Mortgage and Housing Corp. predicted Monday, with the expected slow growth in the economy keeping house prices in check.

CMHC, the Crown corporation that insures Canadian mortgages, expects little change during 2011 in prices and sales of existing homes, as well as little change in new home construction.

Mathieu Laberge, deputy chief economist at the agency, says low interest rates will keep buyers buying, but the slow economy will put a damper on any price hikes.

"With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011," Laberge said in a CMHC statement.

Mortgage rates will remain flat through most of 2012, CMHC predicts, and start increasing moderately in late 2012 or early 2013.

The average house price across the country will hit $368,900 for 2012. By 2013, it will be $379,000.

Around 457,300 existing homes are expected to change hands in 2012, moving a little higher in 2013 to 468,200 units.

Housing starts are expected to be around 190,000 units this year and 193,800 units in 2013, the CMHC also predicted.

Over 2012, CMHC expects Canada's six eastern provinces will see a contraction in housing starts. By 2013, however, modest growth will return to Quebec and Ontario, they say.

All four western Canadian provinces will see growth in housing starts in 2012, with Alberta leading the way at 13.2 per cent. In 2013, the western provinces except Saskatchewan will see positive growth; Saskatchewan's total starts are expected to contract by 2.7 per cent.

Low mortgage rates have driven demand in the housing markets for years now, causing house prices to rise sharply, particularly in big cities such as Toronto and Vancouver.

Even as the economy has slowed in recent years, the housing market has seen little change. Price growth has slowed in most areas, but not retreated.

Last month, BMO economists suggested Canada would likely avoid a serious housing market crash, with the possible exception of Vancouver.

That analysis, by BMO economists Sherry Cooper and Sal Guatieri, suggested that most markets are more likely to cool rather than collapse over the next couple of years.

The one exception, they said, would be Vancouver and parts of B.C., which will likely experience a more severe correction, because demand from non-resident Chinese investment has been driving up prices.

Top 10 Large Home Ownership Markets in the USA

   Location                                        Median Home Price 
    Honolulu HI                                                $ 489,200
    Washington-Arlington-Alexandria DC       $ 384,900
    Santa Barbara-Santa Maria CA                   $ 395,300
    Oxnard-Thousand Oaks-Ventura CA         $ 389,000
    San Luis Obispo-Paso Robles CA              $ 393,700
    Barnstable Town MA                                 $ 364,000
    Ocean City NJ                                            $ 358,700
    Santa Rosa-Petaluma CA                           $ 344,500
    Naples-Marco Island FL                             $ 229,300
    Olympia WA                                              $ 214,700

The analytics above compute expected appreciation, cost of ownership and projected return on investment upon sale of the property in 10 years, and adjust them for expected risk associated with volatility of home prices in the market. The highest score was for Naples-Marco Island, Fl.

Most common types of homes in Ontario, Canada

Apartment (suite, flat)
Usually includes 1 bedroom or more, a kitchen, a bathroom and a living room. A bachelor or studio apartment has 1 room for sleeping and eating.
May be in a building or a house.
There are highrises (6-60 stories high with an elevator) or lowrises (fewer than 6 stories high, often with no elevator and called a "walk-up").
Generally, apartments are owned by a landlord and managed by a superintendent who lives in the building.
Condominium (condo)
A type of home ownership where you buy a unit in an apartment building or townhouse complex, but do not own the land. Owners sometimes rent condos to tenants.
Condominium owners join together in a corporation and elect a board of directors to manage the building and the land. Each owner pays his or her own mortgage, taxes, utilities and a monthly fee towards property maintenance.
Duplex and Triplex (semi, tri)
A house that is divided into 2 or 3 separate apartments, one on top of another. The owner of the house may live in one of the apartments.
May be a detached house, semi-detached house, or a townhouse.
Room (shared accommodation)
A room in an apartment, house or other type of accommodation that is rented to 1 person. The tenant usually shares the kitchen, bathroom and living room with other tenants.
Furniture is often included. Meals may be included.
Some types of housing may be more available in certain cities.
Detached (single family home)
Typically a home without any other structure attached to it (other than a garage, carport etc). These can be single storey or multi-storey, anywhere from hundreds of square feet (or tens of square meters) to tens of thousands. Typically you own the land it sits on and is therefore freehold.

Les Sohar is a salesperson with Re/Max in Canada who is an International Real Estate specialist.

It's A Small World After All

Apartment seekers in notoriously pricey Vancouver shouldn’t get too excited about the inexpensive new “designer lofts” now on the market. They may be cheap—the average rent is just $850 a month—stylish, and located in a refurbished heritage building, but they’ve also been labelled “micro-lofts” by developers: a euphemism for exceedingly small. Ranging from 226 to 291 sq. feet, the new lofts, located in the once-condemned Burns Block building, are said to resemble many metropolitan apartments in Europe and Asia—with floor space roughly the size of two parking spaces, or a generous prison cell. And their location isn’t a selling point either. The “micro-lofts” may be downtown, but they’re on Hastings Street, in what is arguably the city’s most crime-ridden neighbourhood. The Portland Hotel—a non-profit residence for drug addicts, sex workers, and the terminally ill—is right next door.

Some say the area is slowly gentrifying, with the addition of similar (albeit larger) developments in the works. And considering Vancouver’s housing market remains the most expensive in the country (not to mention the fact that most inner-city condos today are under 600 sq. feet), apartment seekers may have no choice but to lower their standards.

Each of the 30 furnished “micro-lofts” will have high ceilings, a built-in fold-up wall bed, a flat-screen TV and a very small three-piece bathroom, with a showerhead installed directly above the toilet. Local activists opposed the development, aruging the space should have been used to house the poor, instead of, presumably, those who will just come home to their tiny apartment every night and feel poor.

Real Estate Tips and Dangers to look out for When Investing

Here are the most ignored issues in Real Estate Investing

 Choosing A Location To Invest In
 Market Research
 Putting A Price On A House
 Valuation Using A Cap Rate
 Dirty Tricks To Watch Out For
 Property Inspection
 Rental Properties - What To Look For
 Creative Financing - Multiple Methods
 Fixer-Uppers: What To Fix
 Should You Offer Seller Financing?
 Myths About Real Estate Investing
 Real Estate Investment Clubs
 Partners?
 Private for sales or Sell Your own Companies, the many Pitfalls

Where should I live in Ontario?

This is a very important decision. Where you live will affect your entire experience of moving to Canada.

You need to make an informed decision about where to live in Ontario. It is a good idea to know what a particular community can offer you and what you can offer it.
You might choose a community for many different reasons. Here are just a few things to consider:

Size and cultural makeup of local population

Urban or rural Job opportunities

Social and recreational activities

Services for newcomers

Public transportation/mobility

Weather

Community Profiles


Some websites have useful information about communities in Ontario. Many of these sites are created and maintained by municipal/city governments. Here are some useful sites;


Cities and Towns - Certain cities have developed websites for newcomers who are already living there or who are thinking of moving there.

Municipal websites - Information about communities to see if you want to live there.

Economic community profiles - Information from the Ontario Ministry of Economic Development and Trade. It focuses on the labour market, including population, labour force, wage rates, and more.

Statistical community profiles - Statistics Canada has a statistical profile of all communities in Canada from the 2006 Census data. It has information such as population size, the average number of people living in a home, and languages spoken.

Services Near Me - Go to "Search by Region" and select a region or city to find some basic information, such as geography, population, percentage of immigrants, and useful links.

 For More Information


Canada's Best Places to Live - MoneySense magazine analyzes data for 100+ communities to discover the very best places to live in Canada. This is updated once a year.


Choosing a Safe Place to Live - Tips to help you choose a safe neighbourhood and building to live in.

Child-Friendly Neighbourhoods - Information about how to choose a healthy neighbourhood for children.

Settling in Canada - Profiles of some of Canada's major cities and regions.

Les Sohar 1-877-855-2201
www.sohar.ca
www.soharworldhomes.com

lesandchris@sohar.ca

Kingsway condo draws $121,000 over-asking

Two years ago, a two-bedroom suite in the Kingsway Regent sold for about $539,000, so this 1,685-square-foot version was listed for $579,900. Strong interest came from 40 groups and four competing offers were submitted, including one that was $121,000 over the asking price.

Amid million-dollar houses, this 12-year-old low-rise contains 26 luxury suites like this third floor model finished with nine-foot ceilings, crown mouldings, parquet hardwood floors and a gas fireplace flanked by Juliet balconies in the living area.

To enjoy formal or casual meals, there is an open dining area and a granite-topped peninsula with a breakfast bar off in the kitchen, which also features pot lights, tumbled marble backsplashes and stainless steel appliances.

For added convenience, there is a master suite with a walk-in closet and entry to one of two full bathrooms, as well as ensuite laundry and storage rooms, a ground-floor locker and two parking spots.

Each month, a fee of $535 goes toward the upkeep of a party room and guest suite in the building, which is also close to local attractions such as golf courses, parks and Humbertown Plaza.

 “It’s a boutique building with only four storeys, so units come up very rarely,” says agent Les Sohar. “Any other units that are available are significantly smaller – this was almost 1,700 square feet – so it’s very appealing to someone to downsize from a house into a condo without sacrificing too much space.”

The interior style also left a big impression on buyers. “I didn’t have to do any staging,” says Ms. Beléy. “It was beautifully decorated and professionally painted, so it was a cozy little place.”

Greeks, Italians burying cash as crisis fears grow

ATHENS/MILAN – Greeks and Italians are taking their money and running, moving it abroad or even burying it underground for fear the eurozone crisis will topple banks and wipe out what remains of their savings. Bankers in Greece say worries about the resilience of local banks, coupled with a rise in burglaries, has helped trigger a surge in demand for safe deposit boxes for those who have yet to set up accounts outside in the country. Some are even building their own. “There has been a big increase in rentals of safe deposit boxes, about fivefold compared with last year,” said one banker at a large, foreign-owned bank. “About 10% of the withdrawals we see are headed there. “The most extreme case was a client who told me he was building a safe under his pool.” Retail bank deposits in Greece have plunged to five-year lows as fears mount the stricken nation will fail to meet international lenders’ bailout terms and restructure loans by March, raising the spectre of a ditched euro, a return to the drachma and a sharp devaluation. With ordinary Greek grandmothers now joining the wealthy in seeking sanctuary from economic chaos, banks have embarked on an interest rate war, with some smaller institutions sweetening terms to up to seven percent to woo customers. Bankers said although clients were less panicky than during last September and October, demand remained brisk for foreign currencies such as the Swiss franc, U.S. and Australian dollars and even Norwegian crowns — or gold. BUILDING IN BERLIN The crisis engulfing Greece has already forced Ireland and Portugal to seek bailouts. It now also threatens the efforts of Italy, the currency bloc’s third largest economy, to raise 450-billion euros (US$584-billion) to finance its debt burden this year. Ordinary Italians are also losing trust in local banks. Some have sought a safe haven over the border in Switzerland, while others are putting their faith in the relative stability of eurozone leader Germany. Those priced out of property hot spots such as London are investing in Berlin instead, attracted by the German capital’s relatively low prices, low ownership rates and relatively stable growth prospects. Pensioners, doctors, film directors, architects, young couples and teachers, some of whom can afford to spend no more than 100,000 euros, are seeking apartments in Berlin, prompting local estate agents to brush up on Italian-language skills. “Sales skyrocketed in the last two months due to fears of a possible default of Italy, expectations of more property taxes and the possibility the country will fall into recession,” said Federico Racca, a manager at specialist estate agency Berlino Immobiliare. In the first week of December, Berlino Immobiliare’s network sold fifty properties, as much as it normally does in a single month. In November it sold 78. “They are arriving en masse. What we (are seeing) … has no comparisons with the last eight years,” said Annalisa Fornara, an estate agent at m2Square, a small property agency in Berlin. “There is an entire portion of the market that is moving for the Italians.” Some Italian bankers stress that the rising cost of living, falling incomes and Christmas spending are as much to blame for draining bank accounts as any flight of capital. Italy’s private sector deposits have fallen less dramatically than those of Greece, down 4% in the past year. A manager at a top asset management group in Bologna conceded that “dramatic” media coverage had worried people, adding that large clients had placed cash in safes and that deposit boxes in the area now had “no spare capacity.” “They’re worried about a default and a run on the banks Argentina-style,” he said. “I personally am managing to keep my clients though I must admit while I spent 10 minutes with them before, I am now spending a couple of hours to explain things.”