Canada rated worlds soundest bank system: survey | U.S. | Reuters Well, if this doesn’t add insult to injury. Now the Canadians have one more thing to gloat about. Meanwhile we look like a Banana Republic.
CANBERRA Reuters – Canada has the worlds soundest banking system, closely followed by Sweden, Luxembourg and Australia, a survey by the World Economic Forum has found as financial crisis and bank failures shake world markets.
But Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador and Peru, after a 50 billion pound $86.5 billion pledge this week by the government to bolster bank balance sheets.
The United States, where some of Wall Streets biggest financial names have collapsed in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa.
Where would our banking system be if McCain’s proposed reforms hadn’t been blocked by Barney Frank, Chris Dodd, and Barack Obama?
#31 JimD
FDR prolonged the Depression. That’s why every other country had a short depression while ours was Great.
As one example, he seized private gold, at a low price, then the government said it was worth more than that.
Not too different from now and the 70s when the gold price jumped, only FDR made people give up their gold.
QB, if the US is running up 700 billion more in loans, that should lower the price of the dollar not increase it.
If the incompetents in both parties that are now running our nation keep on ruining it we may be as poor as a large banana republic.
40,
No, you can get a loan, you just get LESS of a loan. Which means you buy a cheaper home or borrow some money from family / friends. Either way, if your debt/loan ratio is too high, or your income is too low you will not get a mortgage without insurance, and insurance won’t cover you since you don’t qualify due to high risk.
I guess it makes sense. Why should you get a loan for a 600K home when you really can only afford 220K?
That’s what it’s like up here.
I think the concept you guys had down there was this… get into an interest only mortgage for 5 years. Every year you collect in taxes the interest you paid on the mortgage and you take that tax return at sink it into the principle of the mortgage. So, after 5 years, you could have knocked anywhere form 20 – 80K of your principle which would then up your equity and decrease your total debt. BUT, what ended up happening is people took the return and bought tv’s and cars.
#46, Wow. Banks only making loans if their money can be paid back. What a novel concept.
#41, Lyin’ Mike,
Where would our banking system be if McCain’s proposed reforms hadn’t been blocked by Barney Frank, Chris Dodd, and Barack Obama?
Even worse shape. McCain’s bill would have removed any oversight from the FDIC and the FED to the Treasury Department and the White House.
#44, Lyin’ Mike again.
QB, if the US is running up 700 billion more in loans, that should lower the price of the dollar not increase it.
Mike, some basic, Econ 101 crap.
The Treasury is buying up US dollars on the open market. Contrary to many people’s idea, there is a finite amount of American money out there. The Treasury hold a large amount of foreign currency. It is now using some of that currency, let’s say the CAN dollar to buy the US dollar. They are also borrowing a large amount of US dollars held overseas. That creates a high demand for US currency and floods the market with other, including Canadian, currency. That demand and supply results in a strengthened US dollar and a weaker Canadian dollar. The same is happening with most other currencies around the world.
The CAN dollar is also falling due to the reduced demand for that countries exports. Much of the American housing market uses Canadian lumber – no home construction, no lumber sold; Canadian oil brings in a lot of foreign exchange; iron ore and other metals are currently overstocked; and the auto industry has almost stopped building vehicles.
By borrowing, the US dollar is propped up. When it comes time to pay back all these loans, look for the US dollar to fall in value as the market becomes saturated. A lower US dollar is good for exports as that makes them cheaper to buyers. A high dollar makes imports cheaper.
#44 MikeN
You would think, wouldn’t you?
You’re mixing up currency with credit in this case. In the long term it may drive down the US dollar but in the short term it will push it up.
It works like this. They borrow the money from, say, China which would be 4.7 trillion Yuan. That money must be moved into the US and converted into dollars. The US dollar will rise because buyers will outstrip sellers by a long shot – that’s the way the markets work. Over time there will be a adjustment.
It also means US exports will drop. Fun eh?
#47, Liberty Loser,
Ya right. It’s a Democrat thing. The Republican idea is to just give the money away to their friends until the banks need a bail out.
#47 LibertyLover
Or even, banks won’t be forced to loan money to people who can’t pay it back.
#50, Um, did I defend the pubs? I don’t think so, hoss. You keep forgetting I don’t play the two-party thing. IMO, both parties are at fault.
#51, I didn’t want to slap the two Misters in the face with it. They seem to think it wasn’t their idol’s idea to do so.
There’s nothing wrong with being Namibian. We’re number one, and they’re number one point zero zero one. I’ve instructed my running mate to keep an eye on Canadia. She can see it from her bedroom window.
There is one man who control$ Canada and he is from Hong Kong…he is the largest account holder at HSBC. And much of his wealth depends on a strong US economy.
Things are never as they seem.
brendal the conspiracy theorist is back! Things are looking up.
#55 “Things are looking up.”
Not for the Canadian economy…
I don’t have to be a theorist…I worked for the guy. I was a corporate officer at his company.
57,
So did I. He wasn’t that important over all. In fact, he’s just a regular HK export.
Darn Canadians. They got health care, Michael J. Fox, Dan Akroid, free ice, and now this!
#35 You should have sold @140 & gotten ready to buy when things settled down, which will be close to the price when you bought in ’03