Keeping it local

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Let it rain, let it rain.

Instead of going on about accounting and taxes, I'm going to switch it up a bit.  This post is a link to an interesting article in the ffwd paper. It is a good article to stir up debate on an issue Calgary is currently facing.

Check it out
http://www.ffwdweekly.com/article/life-style/urban-living/density-what-good-is-it-7471/

Here at Henderson Campeau we love the idea of living, working and shopping all within a small radius.  Both partners of the firm live within a few of blocks from the office.  We also engage suppliers in the neighborhood and dislike driving in traffic.

Have a great week.

Time to budget

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So it's June.  What a spring.  Let's hope the April and May showers have passed and the summer sun is on the way. At the office, we are excited for the summer months, as I'm sure you are too.
We have been busy in May and into June.  The idea that everything slows down after April 30th is not so accurate.  It's exciting here at Henderson Campeau, we continue to grow and develop new and existing relationships.
We are trying to get some golf in as the weather improves. We are also looking forward to all the summer events and fun to be had here in Calgary


So this week the government re-introduced the 2011 budget with very little surprises.  In regards to how it may affect you click on the following link and explore the highlights.
2011 budget highlights
A few that stick out are:

• Children's arts credit.  A $500 tax credit for children enrolled in artistic activities.  Similar to the existing fitness credit but for the arts
• Family caregiver credit. An additional tax credit of $2000 for caregivers of mentally or physically infirm dependents.
• For small businesses.  A onetime $1000 EI premium credit on the company's increase in premiums if they hire new employees in the year.  (the total EI premiums for the business must be under $10,000)

Just a few highlights. Keep yourself informed and aware of how tax changes (or even current rules) affect you, your family and your business.
Have a great weekend.

Canada Day, and incorporating your business

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Beautiful Elbow Falls, I spent an afternoon out there a couple of weekends ago, some great Canadian landscape.
So it's Canada Day, very exciting.  The summer warmth is finally here. It is a great weekend to celebrate this great country of ours.
I spent a few years living in the Netherlands; their Canada Day equivalent is called Queen's Day.  They celebrate by wearing bright orange from head to toe, taking to the streets in a country wide free market, and of course cruising up and down the canals, singing laughing and celebrating everything Dutch. It is an amazing display of patriotism and joie de vivre.  My point here is that, on this holiday Friday, go out and celebrates everything Canadian; be proud about it.  Whatever it is that you love about this country go out and enjoy it; and maybe wear some bright red.  O'Canada.
Onto some accounting matters.  Since the end of the personal tax deadline we have spoke with many clients contemplating the decision to incorporate their business or not.
The decision to incorporate is a difficult one. Every business is in a different situation and has different goals.  Therefore whether to incorporate or not all depends on your situation. 
I highly recommend sitting down with your accountant before making the decision and gathering all the information you need before proceeding. 
Generally speaking, below are disadvantages and advantages of incorporating your small business. 
Disadvantages  - The costs and administrative obligations.  Once you form a corporation, you now have a separate legal entity.  This company is now completely separate from the individual. Legal and accounting fees are required to get the incorporation process completed.  (I highly recommend paying to get the company set up properly).The newly formed corporation must file corporate tax returns, produce financial statements, track balances through bookkeeping, have separate bank accounts and register each year, to mention a few requirements.
-There are many myths out there.  One such myth is that a corporation has many more tax credits and deductions available.  This is false.  A proprietorship (non incorporated business) actually has more tax credits available, as it is included on a personal tax return.  Personal tax credits can be used to reduce taxes. Business losses can be applied against other sources of income. The same business expenses/deductions against business income apply to a business, incorporated or not.
Advantages  -Limited Liability. Since a corporation is an entirely separate legal entity.  A shareholder’s personal liability is limited to what is invested in the company.
-Flexibility on timing of taxes, and distribution of income.  If a corporation does not distribute all of the profits to shareholders, there is a potential to defer personal taxes until the individual receives income from the corporation.  Deferring shareholder distributions for a subsequent year (through payroll or dividends) results in the company paying corporate taxes (at a low rate) on the profits, and the personal taxes are deferred. I’d like to emphasize that if the shareholders take all the profits from the company each year; there is no advantage to incorporating.
-Planning.  If planned appropriately the corporation can have several shareholders.  How these shareholder's are paid, when and who is paid, offers tax planning options to the corporation and shareholder.
These are just a couple of factors to consider when operating a small business.  Before making the decision, sit down with your accountant and determine what suits you the best.
Now go out and enjoy Canada.

All the leaves are brown. (Thinking of a Salary or a Dividend?)

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The leaves are brown but the sky is definitely not gray.  What a gorgeous September.  The month of July, August and September have been eventful for the firm.  Both partners enjoyed some relaxing vacation  time in Calgary and abroad. With the last three months of the year upon us the office is busy.  We have all hands on deck and look forward to tackling another busy season. Of course, we’ll also be taking some time to enjoy Calgary’s beautiful fall weather.  This week, we would like to discuss a significant accounting and tax issue we often encounter with both start up and established businesses: how to compensate the business owner. Once a business is incorporated, it is established as a legal entity know as a corporation.  The corporation is now a separate entity from the business owner.  As a result, business owners cannot simply withdraw cash from the company without tax consequences.  Corporations will need a formalized structures in place to pay the business owner. This structure is important because it will have cash management and tax implications. The two most common methods of remuneration are salary or dividend.The following considerations should be examined when putting formalized payment structures into place.  We strongly advise discussing  the following with a qualified accountant to determine what option best suits your business model. v  Salaries are considered to be active income.  Dividends are investment income.  RRSP contribution room is calculated on active income.  With active income (salary) the taxpayer’s RRSP room increases.  If your only source of income is dividends, the taxpayer cannot build RRSP room nor benefit from certain tax deductions, such as child care expenses.v  Salaries are considered operating expenses for the corporation.  They are fully deductible in the corporation.  The salaries are then taxed normally through the personal tax payer.  Dividends are not an expense for the corporation.  The dividends are taxed as investment income through the personal tax payer.   There is a tax credit available on the dividends.v   Salaries require additional administration.  Each month deductions have to be calculated and remitted to the CRA. v  With a salary, taxes are deducted from each pay cheque. As dividends are usually lump sum withdraws, the taxpayer must pay the applicable taxes when they file their personal tax return.v  CPP is not payable on dividends.v  Depending on the corporate structure, dividends can be strategically claimed to defer personal taxes and declare income to different shareholders. v  Salaries must be paid to employees of the company and dividends paid to shareholders.  If you are not an employee or not a shareholder, the choice has already been made.
As you can see, there are tax consequences and other factors to consider when determining remuneration from your company.  The decision all depends on specific circumstances for each business and owner.

Children's art amount

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Happy spring.  At the office we are busy meeting personal clients, completing corporate year ends and excited for yet another personal tax season. It's nice to see everyone this time of year and do a little catching up.

With the 2011 personal tax season here, there are some additional credits available in 2011.  Probably the most common credit will be the children's art amount. 

All the details can be found by following this link: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/370/menu-eng.html

For clarification or just to arrange a personal tax meeting please get in touch with us.

Have a great week

CANADA URGED TO TIGHTEN MORTGAGE RULES

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The Canadian Press

Date: Thursday Feb. 11, 2010 6:56 AM ET

OTTAWA — The federal government should avoid major surgery and make only minor adjustments to deal with fears of overheating in Canada's housing market, a number of leading economists said Wednesday.

Federal Finance Minister Jim Flaherty and the Bank of Canada have expressed concern that Canadians may be assuming too much debt in home purchases, debt that could rebound on them when interest rates rise.

But some solutions being floated in advance of Flaherty's upcoming March 4 budget -- doubling the minimum down payment to 10 per cent, or reducing the maximum amortization period from 35 to 30 years -- could do more harm than good, the economists said.

"We want some sort of micro-surgery, not (taking) a pickaxe to the problem," said Avery Shenfeld, chief economist with CIBC World Markets.

Bank of Nova Scotia economist Derek Holt said such radical surgery could cause home prices to crash and shake confidence in the consumer sector, a key driver of the fragile economic recovery.

Interviews with economists at four of Canada's big banks showed some disparity of views as to the size of the problem, but general agreement that there is good reason for concern.

Most see home prices in Canada as being 10 to 15 per cent too high, largely because construction of new homes ground to a halt during the recession, decreasing available supply, and because of record-low interest rates which are luring many new entrants into the market.

The Canadian Real Estate Association said this week it expects home prices to gain another five per cent to a record average of $337,500 this year. Sales will also hit record levels this year before tailing off next year, the association said.

It is unclear whether Flaherty is contemplating measures to cool prices and activity. Last weekend, the minister told reporters he was closely watching prices, but did not believe Canada had a housing bubble as yet.

But if one were to develop it could have wider repercussions on the economic recovery, as occurred in the United States, the economists said.

The best approach now is to take baby steps that would help moderate prices and activity and create a so-called soft landing.

One measure, according to TD Bank deputy chief economist Craig Alexander, would be to tighten the "income test" banks use to assess whether a prospective homeowner can meet monthly mortgage payments.

Already, banks build in a cushion in handing out floating mortgages by judging credit worthiness based on the borrower's ability to make payments on the three-year rate, not the variable rate -- about a two percentage point difference. Alexander said that could be increased to the still higher five-year posted rate.

A variation would be for banks to judge ability to meet payments not just on the mortgage but on all outstanding debts of a prospective homebuyer.

Yet another idea would be to deny government-backed insurance on mortgages for investment properties, thereby dampening speculation.

Economists believe such measures could help deflate any housing bubble without bursting it.

"It's not in the interest of either buyers or lenders to have boom-bust cycles," said the TD's Alexander.

"That's the lesson from the U.S. experience. If you have the wrong incentives and you don't have regulations, you end up in a place you don't want to be."

Bank of Montreal economist Douglas Porter said if Ottawa chooses to raise the down payment requirement, it should do so modestly, perhaps to six or seven per cent.

Porter said, however, that he didn't think reducing the amortization period to 30 years would be dramatic enough to cause a major disruption in the market.

Economists point out that home affordability is expected to tighten this summer even if Flaherty does not change the rules.

The introduction of the harmonized sales tax starting July 1 in Ontario and British Columbia -- two of the hottest home markets -- is expected to add a couple of thousand dollars to home purchases in those provinces.

And Bank of Canada governor Mark Carney is widely expected to start raising interest rates as early as July.

CANADA'S ECONOMY OUTPACING THE US

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IMF says Canada will likely outperform this year, sees slower growth in 2011
Thu Jul 8, 9:57 AM
Joe Mcdonald, The Associated Press
Email StoryIM StoryPrintable View.By Joe Mcdonald, The Associated Press

BEIJING, China - Canada's economy is on track to grow more quickly this year than previously expected, putting it ahead of the United States and most other advanced economies, according to new estimates from International Monetary Fund.

The IMF said Thursday it's raising the 2010 growth forecast for Canada to 3.6 per cent from its previous estimate of 3.1 per cent, issued in April.

The IMF's July report also raised its U.S. growth estimate to 3.3 per cent, up from 3.1 per cent and its world estimate to 4.6 per cent from 4.2 per cent.

Asian countries with rapidly maturing economies will grow more quickly than the United States, Japan and European countries that have historically been more advanced.

China's growth for this year, for instance, is now projected at 10.5 per cent, up five percentage points, while the IMF expects India's economy will advance 9.4 per cent this year (up six percentage points from the April projection.)

Next year isn't looking so rosey for Canada, however.

The IMF has lowered its projection for 2011 growth by four percentage points to 2.8 per cent. Also notable was a reduction in the IMF's 2011 projection for China, which has been reduced by three percentage points from April's.

In contrast, the U.S. growth projection for next year was raised by three percentage points to 2.9 per cent, slightly ahead of Canada, while the world outlook for 2011 was raised by eight percentage points to 4.3 per cent.

The IMF, a Washington-based multnational organization affiliated with the United Nations and the World Bank, said Europe's debt crisis might stall the global rebound and governments need to shore up shaky public confidence.

Its quarterly World Economic Outlook warned that "risks have risen sharply" and Europe has to quickly resolve debt problems and restore confidence in its banks.

Europe's problems "could spill over to other regions and stall the global recovery," said Jose Vinals, director of the fund's monetary and capital markets department, at a news conference in Hong Kong.

"Further credible and decisive policy action is needed to resume progress on financial stability and keep the economic recovery on track," Vinals said.

Risks so far are limited to financial markets and activity in other fields stabilized at a high level in May, the IMF said. It said industrial output and trade grew by double digits and there was a modest but steady recovery in developed economies and strong growth in emerging nations.

"The numbers for economic activity have come in strong — in fact, stronger than we have forecast," said Olivier Blanchard, director of the IMF's research department.

The fund raised this year's U.S. growth forecast from 2.7 per cent to 3.3 per cent. The outlook for Germany and other European nations that use the euro common currency was unchanged at 1 per cent.

A global "double dip," or relapse into recession, is "very unlikely," Blanchard said.

Asian economies recovered strongly this year, driven by buoyant exports and stronger domestic demand, the IMF said.

The fund raised its 2010 growth forecast for Japan to 2.4 per cent from 1.9 per cent and for India to 9.4 per cent from 8.8 per cent. The estimate of the Asia region's growth rose to 7.5 per cent from seven per cent.

However, it warned that weakness in Europe "would affect Asia through both trade and financial channels."

Weak data from major economies in recent weeks have diminished confidence in a strong rebound from last year's recession.

The fund's forecast for 2011 growth was unchanged at 4.3 per cent, a decline from this year's rate.

In a move that might fuel concern the recovery is fading, the fund lowered its 2011 growth forecast for Japan from two per cent to 1.8 per cent and for Britain to 2.1 per centfrom 2.5 per cent.

In Europe, the IMF said governments must resolve uncertainty about banks' exposure to sovereign debt and other risks and make sure lenders have enough capital and markets have adequate liquidity.

It said many advanced economies urgently need to push ahead financial reforms including recapitalizing banks, restructuring and consolidating banking industries and overhauling regulation.

"In the absence of complete banking sector recapitalization and restructuring, the flow of credit to the economy will continue to be impaired," the IMF said.

BMO's 5 year 2.99% Mortgage Offering

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On first glance this looks like a great deal. 2.99% for a 5 year mortgage- the lowest 5 year rate ever.
However a closer analysis offers some of the points to be aware of.

Consider:

This is a two-week promo (at the moment) valid until JANUARY 25TH.

There are conditions to their offer. The main terms of BMO's special are as follows:

Maximum Amortization: 25 years
Rate Hold: Up to 90 days
Pre-Approvals: Allowed
Lump-sum Pre-payments: 10% maximum per year (1/2 of the 20% that BMO normally allows)
Optional Payment increase: 10% maximum per year (again, 1/2 of the 20% that BMO normally allows)
Term: Fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage.
BMO Mortgage Cash Account: Not available with the Low-Rate
BMO Skip-a-Payment: Not available with the Low-Rate
BMO ReadiLine: Not available with the Low-Rate
Other Details: Not applicable to non-owner occupied rental properties

Most importantly, the client is tied to BMO for the entire 5 year term of their mortgage, even if they want to break it and pay a penalty, they are forced to stay with BMO at whatever rate BMO offers. Client loses negotiating power.

This rate and mortgage is great if you plan to live in the house for many years and will not need to refinace during the term.

CAAMP'S VIEW ON TODAY's MORTGAGE ISSUES

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BASED ON OUR RESEARCH AND KNOWLEDGE OF THE SECTOR, WE SEE NO REASON TO TIGHTEN OR RESTRICT ACCESS TO RESIDENTIAL MORTGAGES AT THIS TIME1. CURRENT ENVIRONMENT Canada has a well-earned reputation for exercising economic prudence. As a result, we have managed to avoid a mortgage or housing market meltdown. Our banks are stable and our economy, while impacted by the general global economic slowdown, remains healthier than most. CAAMP’s extensive industry research indicates that the Canadian mortgage industry is healthy. We must continue to “stress test” our own financial sector to determine how it would withstand potential weakening of the economy. The more educated we are about the debt we incur (mortgages, credit cards, lines of credit), the better off we will be2. FEDERAL GOVERNMENT ACTIONS TAKEN The federal government responded promptly when it was determined changes were needed in the mortgage market. There have been three significant sets of changes in the past 36 months: - Amortization periods shortened to 30 years from 35 and 40 years - Minimum down payment increased to 5 per cent of purchase price. No 100% LTV mortgages - Homeowners refinancing their mortgage may borrow up to 85 per cent of the equity in their home; down from 90% and 95% - These changes have impacted the mortgage market; re-financings have decreased dramatically and mortgage credit growth has slowed Based on our extensive research and knowledge of the sector, we see no reason to further tighten or restrict access to mortgages at this time3. REASONS FOR CURRENT CONCERN1) Housing Market Prolonged low interest rates are making it more attractive to purchase a home Research shows that the vast majority of homeowners can accommodate rate increases (84 per cent surveyed in CAAMP’s fall 2011 research said they could handle a $200/month increase) CAAMP’s fall 2011 survey indicates mortgage borrowers are prudent, increasing their lump sum payments and paying down their mortgage faster than required Supply and demand drive housing prices – provinces and municipalities should be more aware of their land-use policies and how they impact housing supply2) Media Focus on Insurance Ceiling - Changes in Some Banks’ Lending Practices It is a fact that CMHC is approaching its $600 billion government-imposed limit on mortgage default insurance. Private insurers have a $300 billion limit. This has nothing to do with mortgage insurers being responsible for an increasing number of higher risk mortgages Lenders are buying portfolio insurance against defaults on low risk mortgages - cases where homeowners have more than 20 per cent equity in their homes. These are not high risk mortgages. CMHC is approaching its limit because the number of mortgage holders has grown, the population and housing units have increased and lenders have been insuring low risk mortgages, leveraging the government’s triple A credit rating for other bank business Residential mortgage credit in Canada continues to expand. During the past five years, outstanding residential mortgage credit has expanded by 53%, or an average rate of 8.9% per year. The growth rate is slowing The volume of outstanding residential mortgage credit passed the $1 trillion threshold in July 2010, and as of August 2011, it reached $1.079 trillion Increased homeownership results in an increase in mortgage default insurance However, mortgage defaults are rare. CMHC reported it paid out $454 million in the first nine months of 2011 which represents a 0.42 per cent default rate Overall mortgage arrears rates in Canada are declining and never approached the level of the early 1990s. The housing market in Canada is growing organically and safely There is no parallel in Canada to the subprime default problems that plagued the US market3. FURTHER RESTRICTIONS ON ACCESS TO MORTGAGESWho will be affected? Self-employed borrowers who represent a growing portion of our labour force (currently 2.67 million people, or 15% of employment in Canada) New Canadians who can afford a down payment but have yet to build credit and employment history First time homebuyers who want to enter the homeownership market and build equity These are not the people who fall in to a sub-prime loan category like we saw in the US; yet these changes will impact them The housing industry is an engine of growth in Canada. If we impede its growth, we will add to unemployment and depress the economy If fewer mortgage lenders are able to insure their loans simply because the insurance program has not kept pace with the growth in the mortgage market, then consumers will have less choice when it comes to negotiating a mortgage. Less choice, or less competition, will inevitably lead to higher borrowing costs for the Canadian consumer Likewise, if mortgage brokers are restricted in the mortgage products they can offer, consumer choice will be diminished and costs will increase This reduced access to capital will make it more difficult for people who can legitimately afford to buy a home4)What are the Risks of Further Restricting Access to Mortgages?CAAMP has one of the most comprehensive collections of research on the mortgage industry. It includes original data on borrowers and the characteristics of mortgage loans. This research has revealed repeatedly that borrowers and lenders in Canada have been prudent, and only a very small share of borrowers would have trouble affording future rises in mortgage rates.There are risks, but most are related to the broader economy through two channels:UnemploymentThe broader economic data suggests that the Canadian economy is slowing. If that results in job losses, the housing market would be negatively affected, and there would be impacts on mortgages held by people who lose jobs and then struggle to make payments.Declining Housing PricesHousing prices could decline in a weaker market. In a recession, there is the threat of a downward spiral: a weak economy harming the housing market which negatively affects the broader economy. We believe and trust that the federal government will act to mitigate such a negative scenario.These risks have nothing to do with mortgage products themselves.Risks to the Canadian mortgage market are dependent on the performance of the broader economy. In that light, the best means to control mortgage market risk is through strong economic management. In particular, care must be taken not to take any measures in the mortgage market that unnecessarily reduce housing activity that would be damaging to the economy.

VIEWS ON BANK of MONTREAL'S 5 YEAR RATE

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A good explainatory article by Robert McLister of Canadian Mortgage Trends explaining the pros and cons of Bank of Montreal's just announced 5 year 2.99% rate:BMO Cranks Up the Heat AgainBMO is dead-set on winning mind share among consumers.It's coming back to the market with two new deep-discount rate promos: A 5-year fixed at 2.99% (which starts Thursday, March 8, 2012) A 10-year fixed at 3.99% (which starts Sunday, March 11, 2012) Both of these specials are low-frills, meaning: A Lower Maximum Amortization: 25 years versus 30-40 years elsewhere Less Lump-sum Pre-payment Ability: 10% maximum per year (i.e., 1/2 of the 20% that BMO normally allows) A Smaller Payment Increase Option: Up to 10%, once per year (again, 1/2 of the 20% that BMO normally allows) A Locked Term: The Low-rate Mortgage is fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage. In other words, unless you sell, you're not leaving BMO for 5 years, like it or not. Both the 5-year and 10-year promos run for 3 weeks, until March 28, 2012.We've heard talk that TD and RBC will not match BMO's pricing on the 5-year term. We'll see. The last time BMO ran this special, its competitors quickly responded with 4-year rates of 2.99%. Despite the one less year, those competing offers came with all the normal bells and whistles.Unfortunately for competitors, a 2.99% five-year rate makes more headlines than a four-year promo at the same price, and BMO knows it. This deal has garnered almost a dozen major media stories already, and the press release only came out four hours ago.As for BMO's 10-year deal, it is 146 basis points below the nearest Big 6 bank competitors' advertised rates. It is BMO's lowest 10-year rate ever, and it matches ING's current 3.99% offer. (ING was the first bank in Canada to advertise 10-year rates below 4.00%.)With these rates, BMO is starting to make other big banks look increasingly silly. CIBC, National Bank, RBC, and TD are currently promoting 5-year "special offer" rates of 4.04%. That's 105 basis points above BMO (albeit with more flexibility). Those rates border on ridiculous, and they insult the intelligence of increasingly savvy consumers who know that well-qualified borrowers rarely pay anything close to those rates.Yes, we say that knowing that BMO's Low-rate mortgage is highly restrictive and not suitable for most.It is, however, suitable for some. The target market includes many: First-time buyers Rental property owners Owners of 2nd homes The customer should have no foreseeable need to break, increase or aggressively prepay his/her mortgage for five years.In posting more transparent rates than its peers, BMO is taking a page from brokers and smaller rivals. In doing so, it's building credibility with consumers at its competitors' expense.Frank Techar, BMO's Canadian banking head, tells Bloomberg: "The reaction to our January offer was fantastic." With a mortgage market that BMO CEO William Downe admits is "slowing," 2.99% is a big fat worm on a hook. It is bait that gets BMO's phones ringing.It also gives BMO's sales force a chance to upsell people into higher margin mortgages without all the restrictions of BMO's Low-rate product. (There's a lot of that going on, according to the BMO mortgage specialists we've talked to.)With this rate sale, BMO is certain to take flak for fuelling consumer borrowing at a time when high debt levels are worrying policymakers.To that end, Techar maintains that BMO is not fuelling the fire. He tells the Financial Post that these rates "are consistent with the debate around the need to reduce consumer debt levels."In an interview with Reuters, he said: "People are not going to stretch to get the largest mortgage they can with a 25-year amortization product. Because the monthly payments are higher, they...will go to a 30-year amortization product." (He's right.)Downe recently said this to analysts about BMO's Low-rate Mortgage:"We think that's a product that is good for Canadians; it's good for Canada; it's good for our customers, and we intend to continue to promote it in this environment.It's a product that we believe addresses all of the risks that are currently being debated, whether or not the consumer debt levels that are too high in Canada and a possible fallout from economic slowdown and rising interest rates. It helps our customers pay less interest. It mitigates their interest rate risk for five years. It helps them retire debt free by paying off their balance faster, and it works against market price appreciation. In fact, it helps with...house price appreciation, because the shorter amortization reduces the maximum purchase price people can afford."Being a 5-year fixed, this product does mitigate some risk. A 200 basis point rate increase by 2017 would only lift payments $133/month on the average Canadian mortgage of $151,000.As for rumours that policymakers are ticked off by BMO's pricing, the last time anyone looked, it's still a free market. BMO can price as it sees fit within regulations. As long as underwriting standards remain high, God bless it for bringing down rates industry-wide.Even if rates like 2.99% do spur more interest in mortgages, it doesn't mean lenders will approve high-risk borrowers. BMO's average loan-to-value (LTV) is just 60%. More notably, BMO's residential mortgage portfolio has a long-run loss rate of less than 2 basis points (i.e., exceptionally low).Barring a run-up in bond yields, we could now start seeing competitors (like mortgage brokers) respond with full-frills 5-year offers that are just a pittance above BMO's rate. Some might even match or beat it.We'd strongly encourage most folks to consider paying a bit more to avoid the low-rate mortgage restrictions—especially if the premium is small (0.05%-0.10%) and especially if you can benefit from the service and extras that come with a standard mortgage.Side Note: Here are a few more details about BMO's Low-rate Mortgage: Rate Hold: Up to 90 days Pre-Approvals?: Yes BMO Mortgage Cash Account: Not available with the Low-Rate mortgage BMO Skip-a-Payment: Not available with the Low-Rate mortgage BMO ReadiLine: Not available with the Low-Rate mortgage Rentals Allowed? Yes 2nd Homes Allowed? Yes

Introducing Spectrum Road: Jack Bruce, Cindy Blackman Santana, Vernon Reid, John Medeski

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Pictured: John Medeski (organ), Cindy Blackman-Santana (drums & vocals),Vernon Reid (guitar), Jack Bruce (bass & vocals)

via PALMETTO RECORDS

SPECTRUM ROAD is JACK BRUCE, VERNON REID, JOHN MEDESKI & CINDY BLACKMAN SANTANA

Spectrum Road is a groundbreaking collaboration between four giants of modern music: Jack Bruce, Vernon Reid, John Medeski and Cindy Blackman Santana. Born from a shared passion for the music of legendary drummer Tony Williams, the band will release their self-titled debut album on June 4th through Palmetto Records. Later that week, Spectrum Road celebrates its arrival with a highly anticipated performance at Bonnaroo on June 9, which also serves as the first show of a U.S. summer tour. Complete dates will be announced shortly.

“To be able to play and record in this band alongside three of the most creative and stellar musicians in the world is a longtime dream come true,” states Vernon Reid. “The idea for Spectrum Road first came about in 2001 and it was the ongoing belief in the kind of record we knew we could make together that made it come to fruition.”


Spectrum Road opens the ten-track effort with a blistering take on the jazz-rock barnburner "Vuelta Abajo." It's apparent from the get-go that this is no mere exercise in super-group frivolity, but a deeply attuned band speaking a rarefied improvisational language. As the recording unfolds, there's a primal urgency to the performances that ranges from the meditative beauty of "Where" to the searing intensity of "Allah B Praised." Each of these four iconoclasts play to the peak of their musical powers, yet ultimately achieve a whole greater than the sum of their individual parts. Jack Bruce's bass work anchors Spectrum Road, while he also adds vocals to three songs, including the album's centerpiece, a spellbinding version of the classic "There Comes A Time." Vernon Reid delivers one of the most inspired performances of his career. Particularly worth noting is his patient and slow-burning guitar work on "Blues For Tillman" and a spitfire six-string barrage on "Vashkar." John Medeski shifts tonal colors throughout the ten tracks with flourishes of organ and mellotron. He brings a hefty dose of retro funk to the soaring album closer "Wild Life." As Spectrum Road's cornerstone, drummer Blackman dictates the flow, working in free time, juxtaposing delicate cymbal work against monstrous beats and fearlessly steering the quartet through a deluge of razor sharp turns.

"The band takes the electrifying music of Tony Williams as its starting point and turns it into something totally its own”, says Reid. “There's a vibe from end to end, a certain type of force and ambience that I’ve never experienced before as an artist."

Spectrum Road is named for one of the incendiary tracks on the original Tony Williams Lifetime album, but as these four musicians demonstrate on their debut recording, this isn’t a tribute band. After making rock history with Eric Clapton and Ginger Baker in Cream, legendary British bassist Jack Bruce joined the Lifetime for two records thus serving as Spectrum Road's direct connection to their muse. The group is artfully rounded out with famed guitarist Vernon Reid, of Living Colour, and multi-keyboardist John Medeski, one-third of the juggernaut Medeski, Martin & Wood. Made famous by her ten plus years backing Lenny Kravitz, Cindy Blackman Santana has distinguished herself as an impressively versatile player who’s as comfortable on post-bop sessions with Joe Henderson and Wallace Roney as she is touring with pop stars like Kravitz and husband Carlos Santana. The formidable lineup of Spectrum Road assures the legacy of Tony Williams lives on, and clearly qualifies as a major 2012 music event.

http://www.palmetto-records.com

Purchase the new self-titled debut CD, Spectrum Road. CD   MP3 Download  Vinyl



Tour dates for Spectrum Road (source: Jack Bruce's Web Site)


Dates: JUNE - JULY 2012

US

June 9 Bonnaroo Music & Arts Festival, Manchester, TN
http://www.bonnaroo.com

June 16 San Francisco Jazz Festival, Herbst Theatre SF, CA
http://www.sfjazz.org/events/spectrum-road

June 17 Playboy Festival, Hollywood Bowl, CA

June 19 Aladdin Theater, Portland, OR
June 21 - 24 Jazz Alley in Seattle  http://www.jazzalley.com/reservations.asp

June 25: Vancouver Jazz Festival
http://www.coastaljazz.ca/ticket_info
June 27 Toronto Jazz Festival, Toronto, Canada

June 28 Montreal Jazz Festival, Montreal, Canada

June 29 B.B. King Blues Club, New York, NY

June 30 Howard Theater, Washington, DC

Europe

July 6 North Sea Jazz Festival, Rotterdam, Holland
http://www.northseajazz.com/en

July 7 Montreaux Jazz Festival, Montreaux, Switzerland

July 8 Umbria Jazz Festival, Perugia, Italy

July 10-11 Porgy & Bess, Vienna, Austria




Cindy Blackman, Jack Bruce, John Medeski, and Vernon Reid of Spectrum Road, a tribute to the Tony Williams Lifetime band, in Seattle, WA on February 7, 2011.

Spectrum Road, including Vernon Reid, Jack Bruce, Cindy Blackman-Santana, John Medeski, perform WildLife in tribute to Tony Williams at Tokyo's Blue Note in 2008

Paul McCartney at 70: Honoring His Musical Legacy

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Today, Monday June 18^th, 2012, is Paul McCartney's 70^th birthday. Paul McCartney is my favorite musician of all time, of any genre. He is the most successful songwriter in history, one of the greatest bass players of all time (probably second only to John Entwistle), and a member of the greatest band of all time, the Beatles. With John Lennon, he formed the greatest songwriting team ever.
Recently, Rolling Stone Magazine listed their top 500 albums of all time. The Beatles have four albums in the top 10 of all time, including Sgt. Pepper at #1. Eleven of their thirteen albums made the list, a testimony to the greatness not only of the Beatles as a band, but to Lennon and McCartney as a songwriting team. Paul's Band on the Run also made the list.

SongwriterPaul McCartney has written some of the most memorable music of all time. Although Lennon-McCartney were a team, they wrote most of their songs separately, sometimes with small contributions from the other partner. So songs like In My Life, Strawberry Fields Forever, Help!, Don't Let Me Down, I am the Walrus, are identified with John Lennon, and songs like Hey Jude, Let it Be, Yesterday, Michelle, the Long and Winding Road, are identified with Paul McCartney. Some songs, such as We Can Work it Out, are a product of the songwriting partners sticking two separate songs together; its considered a Paul song, but John wrote the bridge.
The Beatles had 20 number one songs on the billboard charts, all Lennon-McCartney compositions (Something by George was a double A-side along with Come Together by John). Paul's Yesterday is the most recorded song of all time. Paul as a solo artist and with Wings enjoyed another nine number one songs. Paul's band Wings had the second most top ten singles in the 1970's, with only Elton John having more (27 to 26). When Paul goes on tour, he has an amazingly strong and expansive catalog to draw from. He has not only all the Beatle classics, but solo and Wings classics like Maybe I'm Amazed, Band On the Run, Jet, Coming Up, Venus and Mars/Rock Show, and many others. Paul cannot even include all his classic hits on each tour. I have all his live albums, and although there are a core group of songs that show up on each one, there is vastly different song list in total for each tour and live album.

The Wikipedia article on Paul McCartney neatly and concisely summarizes Paul's objective success as a song writer by the numbers: "McCartney has been described by Guinness World Records as the "most successful composer and recording artist of all time", with 60 gold discs and sales of over 100 million albums and 100 million singles, and "the most successful songwriter" in UK chart history. His Beatles song "Yesterday" has been covered by over 2,200 artists—more than any other song in the history of recorded music. Wings' 1977 release "Mull of Kintyre", co-written with Laine, was one of the best-selling singles ever in the UK. He has written or co-written thirty-one songs that have reached number one on the Billboard Hot 100, and as of 2012 he has sold over 15.5 million RIAA-certified units in the United States."
In my view Paul McCartney has made some of his best music in his golden years. At a time when many artist would be retired or doing a modicum of work, Paul is still selling out stadiums, releasing top 10 albums and receiving gold and platinum certifications for CDs and DVDs. I think some of his recent albums, such as Chaos and Creation in the Back Yard, rank among his best.
A recent U.K. Guardian article criticized Paul for honoring the Queen, and not being more socially conscious with his songwriting. But I say nonsense. Paul has written social conscious material (Give Ireland Back to the Irish, Looking for Changes, How Many People?), but also, people need music that is simply enjoyable and life affirming. There is nothing wrong with filling “the world with Silly Love Songs” as Paul once sang. Life is hard, we can't always be serious all the time. Paul's music has a lot of joy in it. It is very life-affirming. We need that, I need that.
Singer
Paul has a great voice. He is known for his vocals on ballads such as Yesterday, Michelle (for which he won a Grammy in 1966), the Long And Winding Road, Let it Be. He is known for his gritty rock vocals on songs like I'm Down, Long Tall Sally, Get Back, I've Got A Feeling, and Helter Skelter (for which he won a Grammy in 2011 for Best Male Rock Vocal for the Live In New York City CD version of the song).
I remember a teacher in my Grad School talking about popular culture and the individual psyche, and she related how as a young teenage girl, she was enthralled with Paul's vocals on And I Love Her.
Billy Joel, who had Paul join him for the last concert at Yankee Stadium, was amazed at how good Paul's voice still was, how he could still sing I Saw Her Standing There in E, and do the Little Richard “Wooos” at nearly 70.
Paul has received high marks for his skillful, light vocal touch on his most recent album of jazz standards, Kisses on the Bottom. BassistPaul is considered one of the best bass players in music. Bass Player Magazine had him ranked #3 behind John Entwistle and Flea. I have seen other polls where he has been ranked #2 only behind John Entwistle.
Paul's bass playing is very melodic. Good examples of his melodic bass playing can be heard on Silly Love Songs, Lucy in the Sky Diamonds, Savoy Truffle, Hey Bulldog, Paperback Writer, Goodnight Tonight, and Something.

Paul's trademark Hofner Violin Bass has accompanied him on every Beatle tour and every solo tour since 1989. He has used other basses on stage and in the studio, such as the Fender Jazz, Wal 5 String, and the Rickenbacker. On the 1976 Wings Tour, Paul's blond Rickenbacker became as much a signature for him as the Hofner Beatle bass was in the 1960's. Paul also played the Wal 5 String, a gift from Linda, on stage during his 1989-1990 tour as well as his Hofner.
I still at my age aspire to be as good a bassist as Paul is. My bass teacher said that no one holds a band together like Paul McCartney does on bass.

Multi-instrumentalistPaul is not only a great bassist, but a solid guitarist and keyboard player as well.
His piano playing on Lady Madonna, Let it Be, and George's For You Blue is superb. Billy Preston was really impressed with Paul's playing in the Let it Be sessions.
Paul also has done some great guitar work, including memorable solos on George's Taxman and his songs Sgt. Pepper, Helter Skelter, Drive My Car, and The End from Abbey Road (in which Paul, John, and George all take turns soloing).
Paul is also an accomplished drummer. He played drums on some of the Beatles songs, such as "Back In The USSR", "Dear Prudence", "Wild Honey Pie", and "The Ballad of John and Yoko". He also played all the drum parts on his first and second solo albums McCartney and McCartney II, as well as the Wings album Band On The Run and most of the drums on his solo LP Chaos and Creation in the Backyard.



Paul is a musician's musician, and a great band leader. When I think of “professional musician,” Paul comes to mind instantly.

A Fan of PaulI am a big Paul McCartney fan. The Beatles are my favorite group, and Paul is my favorite musician of all time. Some of my earliest memories as a child are watching the Beatles on Ed Sullivan when I was barely four years old. My young hip mother took me to see A Hard Day's Night at the Paramount Theater in Cedar Rapids Iowa and I made her stay and watch it twice.
I am a bass player in part because of him, he made it cool to be the bass player in the band.
I have all the Beatles, Wings, and solo Paul McCartney albums in electronic form, and the great majority of it on vinyl as well. I have seen Paul play live several times the last 20 years, and each show has been memorable.
I want to recognize such a marker as Paul McCartney's 70^th birthday.




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Here is the official video of Paul's song, My Valentine. He performed the song live at the 2012 Grammy Award ceremonies. It is an original composition of his included with a set jazz standards from the Kisses on the Bottom album. 


Paul performs Helter Skelter at Citifield, which is included on the CD, Live in New York City. Paul won a 2011 Grammy for Best Male Rock Vocal for this performance.

Southern Baptist Convergence by Molly Worthen in the New York Times

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African-American Protestant Christians may share some basic evangelical theology with their white brothers and sisters, but do not share the same socio-political outlook with them..."To many African-American Protestants, evangelical and the Christian Right remain white words, and their voting record proves it...Black Protestants have good cause to eye Republicans warily...At a seminary best known for teaching biblical inerrancy and prophecies of Armageddon, [Tony Evans] wrote his doctoral thesis on James Cone, the dean of black liberation theology, a school of thought that critiques unjust social and economic conditions through the lens of the gospel."  
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via New York Times Blog
Southern Baptist Convergence
By MOLLY WORTHEN

Fred Luter, pastor of the Franklin Avenue Baptist Church, delivering a sermon on June 3.

Gerald Herbert/Associated PressThe secular media usually ignores the thousands of pastors, missionaries and church volunteers who gather every summer for the annual meeting of the Southern Baptist Convention. This year is different. Everyone from PBS to the Huffington Post is buzzing with anticipation — and not because they are awaiting the tedious discussion of committee reports and budgets necessary to manage the country’s largest evangelical denomination. The reason for all the excitement is this: the 2012 convention, which opens Tuesday in New Orleans, will elect a black man as president for the first time in Southern Baptist history. This is no small thing for a denomination that separated in 1845 from its northern brethren in order to defend the right of Southern slaveholders to serve as missionaries.Fred Luter, the presumptive nominee and pastor of New Orleans’ own Franklin Avenue Baptist Church, said that his imminent election marks “a new day in the Southern Baptist Convention.” The current president, fellow New Orleans pastor David Crosby, called the vote “a great, hopeful, powerful message to our city, our culture, our convention and our country.” No one claims that the election will usher in a colorblind Christian utopia. “We have a long, long way to go in America as far as racial reconciliation,” Luter told PBS, and just last month, Richard Land, one of the S.B.C.’s most prominent leaders, earned a formal church reprimand for calling racism a “myth.”Yet there is a more fundamental question that lurks behind this historic moment. Is a “black evangelical” a contradiction in terms?In recent years, conservative white Protestants have made a special effort to reach out to black believers who share their views on theology and social mores — all the more so as Republicans gear up to woo the “black vote” in November. After all, pollsters have found that black Protestants often agree with white evangelicals on the importance of religious faith and the sinfulness of homosexual behavior. They are no great supporters of abortion rights. They ought to be natural allies in the fight to “defend the family” and preserve America from the forces of secular humanism.Yet to many African-American Protestants, “evangelical” and “the Christian Right” remain white words, and their voting record proves it. Even if we discount the special attraction that Barack Obama held for African-American voters and look back to the 2004 presidential election, we see that 83 percent of black Protestants who attended church weekly voted Democratic, and 92 percent of those who were less observant went for Kerry. Karl Rove’s strategy to mobilize the evangelical vote did not work on them.

Black Protestants have good cause to eye Republicans warily.

The reasons for their alienation, rooted in history, are still with us today. Black Protestants may affirm Christ’s divinity, the Bible’s literal authority, and the other basic doctrines that white conservatives preach. But a statement of creed is not the same thing as lived religion. In many black churches, the crucible of slavery, Jim Crow and the civil rights movement has forged these doctrines into a theology quite different from the cocktail of personal moralism, prophecy and Christian libertarianism that has come to preoccupy the Christian right. If conservative evangelicals are serious about making common political cause with black Protestants, they must revise their expectation that a free market and and a population that obeys their particular reading of scripture will correct the injustices ingrained in American society. They must rethink their approach to America’s history and its modern-day problems.Black Protestants have good cause to eye Republicans warily and mistrust the label “evangelical”: the Christian right’s concerns do not match their own experience or priorities. Tony Evans, pastor of the Dallas megachurch Oak Cliff Bible Fellowship, is as a good candidate as any to represent “black evangelicalism”: he was the first African-American to earn a doctorate from the Dallas Theological Seminary, a bastion of fundamentalism. There he found that he “was getting evangelical training, but on the other hand, I was in this social reality, and I didn’t see them coming together,” he told me when I visited his church a couple of years ago.At a seminary best known for teaching biblical inerrancy and prophecies of Armageddon, Evans wrote his doctoral thesis on James Cone, the dean of black liberation theology, a school of thought that critiques unjust social and economic conditions through the lens of the gospel. Today Evans spends more time working to keep troubled kids and teenagers in school and drug-free through his ministry, The Urban Alternative, than he does picking fights over classic evangelical obsessions like the theory of evolution. Evans is no liberal — he favors faith-based activism over government intervention and recently criticized President Obama for abandoning the Defense of Marriage Act — but as Evans explains it, “as a black evangelical, I live in two worlds. That’s a tension for me.”Conservative black Protestants and the Christian Right also have different memories of American history. While David Barton and other amateur evangelical historians have baptized the founding fathers as orthodox architects of a new Zion, African-Americans remember them as the authors of the Three-Fifths Compromise. “For far too long Anglo Christians have wrapped the Christian faith in the American flag, often creating a civil religion that is foreign to the way God intended His church to function,” Evans writesin his book, “Oneness Embraced.” For black Christians, American history is not a narrative of decline from an arcadia of Sunday family devotionals andMcGuffey Readers to the godless fleshpots of modern America. It is a narrative of liberation that is not yet complete.These divergent understandings of history have amplified disagreement over what it means to follow Jesus’ and the prophets’ command to “set at liberty those who are oppressed.” There is a cliché that white evangelicals are too busy straining toward heaven to care about social justice here and now. This is unfair. Even the most Apocalypse-obsessed preachers have had a heart for the underprivileged: Dwight Moody — a 19^th-century evangelist and the spiritual grandfather of the “Left Behind” novels chronicling the end times —founded a school for orphans, the children of slaves and other needy students. William Jennings Bryan, the creationist anti-hero of the Scopes trial, was a progressive politician who opposed the laissez-faire policies of his day.In the years since World War II, conservative evangelicals’ commitment to “compassion ministry” has mushroomed. The country’s marquee megachurches earmark large portions of their budgets and volunteer manpower for services to their local communities and relief work abroad. Evangelical charities like World Vision International, Samaritan’s Purse and Compassion International contribute millions to disaster relief, child welfare and economic development all over the world. Habitat for Humanity was partly the brainchild of a Southern Baptist who founded an interracial communal farm in Georgia (although some neighbors — probably God-fearing evangelicals too — were not so fond of the idea). What is all this, if not proof that the supposed foot soldiers of the Christian right are working to liberate the poor and oppressed?It all depends on what you mean by liberation. The conservative media guru Glenn Beck once warned his followers: “I beg you, look for the words ‘social justice’ or ‘economic justice’ on your church Web site. If you find it, run as fast as you can. Social justice and economic justice, they are code words.” Beck’s main target was that politically inconvenient liberation theologian, Jeremiah Wright, but he was on to something. In the early decades of the last century, white Protestants who embraced modern science and the latest biblical criticism also began to stress humanitarian work over evangelism. In the 1950s and 1960s, they applauded Washington’s role in expanding the welfare safety net and legislating against discrimination — while many of their conservative brethren lamented the government hubris that removed prayer and scripture from classrooms, upended traditional social hierarchies and “liberated” American public life from the authority of Christianity. To conservatives, such liberation was in fact a kind of bondage: “social justice” became code for “liberals who abandon the Bible and embrace atheistic Big Brother.”

It is fair to say that for most black Protestants — conservative and liberal — “social justice” remains one of Christ’s core commands.

Few evangelicals deny that the Bible has social implications, but “the apostles launched no social reform movement,”writes R. Albert Mohler, the president of Southern Baptist Theological Seminary, the S.B.C.’s flagship seminary. “Instead, they preached the Gospel of Christ and planted Gospel churches. Our task is to follow Christ’s command and the example of the apostles,” he added. Despite the efforts of some evangelicals to combine conservative theology with progressive politics — or at least contest the notion that Jesus opposed the minimum wage — those evangelicals with the most political clout have helped turn the party of Lincoln and Teddy Roosevelt into a pseudo-religion with its own Holy Trinity: the flag, the traditional family and the free market.It is always risky to generalize about the so-called Black Church, a wildly diverse faith community whose representatives range from the civil rights hero Andrew Young to the prosperity-preaching televangelist Creflo Dollar. Yet it is fair to say that for most black Protestants — conservative and liberal — “social justice” remains one of Christ’s core commands. Preaching the gospel includes challenging an unjust social order that first condoned slavery and still traps African-Americans in a web of inequality and prejudice. While conservative white evangelicals have tended to focus their compassion ministry on caring for individuals, black Christians are more likely to locate the sources of injustice in social structures as well as in the hearts of sinners.Corporate sins — institutionalized racism and economic inequalities enshrined in tax codes, the justice system and the distribution of social services — demand repentance. Federal law and government institutions have perpetuated great wrongs in the past, and some black Christians, like Evans, believe that the church is the best agent of social transformation. But many others will never forget that the civil rights movement owed as much to Supreme Court decisions and federal legislation as it did to grassroots cultural change. This legacy encourages them to see “big government” as a crucial ally in reform, and to question the Christian Right’s vision of Washington as a socialist hydra that strangles freedom. “It’s not enough to talk about what black folks ought to do,” said Cameron Madison Alexander, pastor of Antioch Baptist Church North in Atlanta (where former presidential candidate Herman Cain  is a member). “We have to also look at what government is not doing to ensure fairness and equal opportunity. God is on the side of the least of these.”Eleven o’clock on Sunday morning is not quite “the most segregated hour” that it was in the Rev. Dr. Martin Luther King, Jr.’s time, and white evangelical churches deserve praise for their growing proportion of nonwhite members (the Southern Baptists now claim 20 percent, up from just 5 percent in 1990). At the same time, genuine diversity means more than a polychromatic group photo at the church picnic. It is a matter of ideas as well as color. White evangelicalism would not be the vibrant religious culture it is today if white Christians in the Old South had not borrowed freely from the music and worship style of slaves. Their modern descendants should renew that receptive spirit and take seriously the task of reading the Bible and considering American history through nonwhite eyes. As the scholar C. Eric Lincoln once wrote, “black theology is in some sense what is missing from white theology.”Molly Worthen will be an assistant professor of history at the University of North Carolina at Chapel Hill this fall.

Jesus Calms The Storm: Be Still And Know That I Am God

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Today's Gospel reading is from Mark's Gospel (Mark 4.35-41). I see this Gospel pericope as a metaphor for the latent power of Christ in us, that we often do not tap. Christ is with us in all our trials, and I will trust in Him, whether I experience deliverance or not. But I seek to exercise faith in Him for my deliverance. - Lance 

Jesus Calms the Storm, by Laura James, 1995

Today's Gospel from the RevisedCommon Lectionary:
On that day, when evening had come, hesaid to them, "Let us go across to the other side." Andleaving the crowd behind, they took him with them in the boat, justas he was. Other boats were with him. A great windstorm arose, andthe waves beat into the boat, so that the boat was already beingswamped. But he was in the stern, asleep on the cushion; and theywoke him up and said to him, "Teacher, do you not care that weare perishing?" He woke up and rebuked the wind, and said tothe sea, "Peace! Be still!" Then the wind ceased, and therewas a dead calm. He said to them, "Why are you afraid? Have youstill no faith?" And they were filled with great awe and saidto one another, "Who then is this, that even the wind and thesea obey him?"
- Mark 4.35-41, NRSV
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M. Scott Peck opens his book The RoadLess Traveled with the line, Life is Difficult. He wasparaphrasing the Buddha, Life is Suffering. Life is hard.Jesus tells us that “In the world you have distress. But beencouraged! I have conquered the world (John 16.33 CEB).”
We don't know why we suffer sometimes;we don't know why things don't go our way sometimes. Usually thosewho try to tell us why are as useless with their counsel as Job'sfriends.
What we do know is that God is with us.God is with us in our suffering. This seems to be a common theme insacred scripture:
Then the Lord said, "I haveobserved the misery of my people who are in Egypt; I haveheard their cry on account of their taskmasters. Indeed, I knowtheir sufferings, and I have come down to deliver them fromthe Egyptians, and to bring them up out of that land to a good andbroad land, a land flowing with milk and honey, to the country of theCanaanites, the Hittites, the Amorites, the Perizzites, the Hivites,and the Jebusites. The cry of the Israelites has now come to me; Ihave also seen how the Egyptians oppress them. - Exodus 3.7-9 NRSV
Yahweh identifies with the suffering ofthe Israelites in the Book of Exodus.

We also see God walking with God's people in their trials in the Book of Daniel:
When the three young man are throwninto the fiery furnace in the Book of Daniel, they survive, and walkthrough the flames unharmed. The Babylonians who observe them see afourth Person, one “like the Son of God (Daniel 3.25, KJV).”
In today's Gospel, the disciples arecaught in a storm on the lake. They are fearful of their boatcapsizing and of drowning. Jesus is asleep in the boat, seemingly unaware of the circumstances. But like the “Son of God” in thefiery furnace, Jesus, the Son of God, is with them in their peril.Jesus “woke up and rebuked the wind, and said to the sea,'Peace! Be still!' Then the wind ceased, and there was a dead calm(verse 39).”
Jesusis always with us, and he tells us in the storms of life, "Bestill, and know that I am God!” - Psalm 46.10, NRSV.
I know this cansound like a platitude. But if we are going to suffer, why not sufferand have God with us, rather than suffer alone?

Once a few yearsago, a young man shared with me his problems. I won't go into detail,but he had many problems involving overwhelming financial problems,losing his home, and his shaky marriage. He was consideringrededicating his life to Christ. He was a Christian, but felt that hehad not been living a Christian life. He wondered if God woulddeliver him from all his problems if he surrendered to Christ. I toldhim, “I don't know, maybe God will deliver you. But even if you arenot spared some of these hardships, wouldn't it be better to gothrough them with God?” He nodded, and said, “Yes, it would bebetter to have God in my life, even if things don't work out.”
In the book ofDaniel, when the three young men are threatened with being throwninto the fiery furnace, they tell the Babylonian King: “our Godwhom we serve is able to deliver us from the burning fiery furnace,and he will deliver us out of thine hand, O king. But if not, be itknown unto thee, O king, that we will not serve thy gods, nor worshipthe golden image which thou hast set up (Daniel3.17-18, KJV).”
This is how I feelI need to approach life. I want God in my life even if things don'twork out. I have challenges and stressors that seem to have noimmediate solution, but I believe Christ is with me. If there is to be no relief, I would still rather have God in my life during my hardships. 
Although I realizeI may not be able to escape some suffering and hardship in life, Iwant emphasize that God does indeed have the power to deliver us fromour afflictions. The Bible says, “Many are the afflictions ofthe righteous: but the LORD delivereth him out of them all (Psalm34.19, KJV). The text does not deny that we are afflicted, but itholds out hope there is a deliverance.
I like that in thecontemporary rendering of the Lord's Prayer in the Episcopal Book ofCommon Prayer, we pray Save us from the time of trial, ratherthan lead us not into temptation. Again, we may indeed sufferand have trials, it is part of life; but there is nothing wrong withpraying to be saved from the time of trial.
When I think ofJesus sleeping in the boat during the storm, I think of it as ametaphor for God's latent power within us. We DO have the power inChrist.
A few times, Ihave posted one of my favorite verses in the Bible as my Facebookstatus:
“Therefore Isay unto you, All things whatsoever ye pray and ask for, believe thatye receive them, and ye shall have them.” - Mark 11.34, RV.
Almost immediatelysomeone, another Christian, will post a comment qualifying Jesusclear words here. I suppose people are concerned that I am buyinginto the “prosperity gospel,” “name & claim it,” or theysimply recognize that we don't always receive miracles or apparentanswers to prayers.
The problem I have with theirmitigation of course, is that Jesus DOES say this- he says elsewhere "Truly I tell you, if you have faith the size of a mustardseed, you will say to this mountain, 'Move from here to there,' andit will move; and nothing will be impossible for you (Matthew17.20 NRSV)."
I will not lose faith if my prayersaren't answered the way I want, but I am not thereby going to refrainfor asking for my needs from our Lord. He counsels us to do so. Heenjoins us to pray in faith, believing that we will receive what isasked.
Years ago, I went to a charismaticChurch, in which the Pastor had warned about the prosperity gospel.Yet, he balanced that warning by telling his congregation, “Istill live my daily life according to faith principles.” He didnot elaborate, but for me today, faith principles involve meditation, dailyprayer, daily reading of the Bible (I use the Office Readingsassigned in the Episcopal Book of Common Prayer- which I recommendfor any Christian), and also the use of affirmations.
When I think of Jesus asleep in thatboat, I think of that latent power of Christ within us, that weprobably never tap. Another favorite verse in the New Testament thatalludes to this, which is also used as a Benediction for Morning andEvening Prayers in the Episcopal Book of Common Prayer, is from St.Paul's letter to the Ephesians:

“Now unto him that is able to doexceeding abundantly above all that we ask or think, according to thepower that worketh in us, unto him [be] the glory in the church andin Christ Jesus unto all generations for ever and ever. Amen(Ephesians 3.20,21, RV).”
We need to release that latentChrist-Power with in us; we need to ask Jesus to baptize us with hisHoly Spirit, or to pray for a release of the Spirit. We received theHoly Spirit when we believed or were baptized; but that power islatent power within us is not always manifest, because we do not exercise faith. The Gospel todayis a challenge for us to have faith in Christ, who will help usweather all the storms of life, even when things look hopeless. AsChrist was with the disciples, sleeping in their boat, may “Christdwell in [our] hearts through faith (Ephesians 3.17).”