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.
pedro, I bought two blocks (1999 and 2003) and have held since then. Yup, I’ve taken some losses lately in overall value.
APPL has been very good to me but I’ve put a stop in at $85 so we’ll see what happens.
Hey John, have we hit bottom yet?
#36 I don’t know what John will say but I think the DJI will bottom out at 7500. What do others think?
#37 QB, the huge plunge in the first 5 minutes of trading this morning looked very much like a market capitulation to me. Babies were being thrown out right and left in the torrent of bathwater. Then half an hour later we were already green on the Dow. My guess for the bottom is slightly above yours (but more precise): 7882.51 😉
Keep in mind that almost any announcement for further coordinated central bank or government action by the end of this weekend could be the catalyst for a rally that keeps us permanently out of the 7000’s.
#26 QB got it right. Along with the economy, oil prices have been diving as well. The Canadian dollar is very resource heavy. So, if metals and oil are low, then so is the Canadian dollar.
However! Canada CREATED 100,000+ new jobs in September. Sure, they are mostly student and part-time jobs, but at least it is positive!! What’s more, we should not see any banking crashes. I can’t wait to see how our BIG 6 banks do this quarter. My bet is a few big writedowns, but still VERY profitable.
Crap, now my cross-border shopping trips will be more expensive AND I will have to deal with Cuba style begging. Hmmm… Interesting…
On subprime lending the limit is 2% total including off-book
The mortgage industry here is vastly different. If you can’t cover 25% of the down payment you MUST get mortgage insurance. And a 5% minimum is required before you get a mortgage. AND, if you’re debt / loan ratio is too high, you get nothing…
How do those who can’t afford the loans get them then? Do you mean you guys don’t loan money those who can’t afford it?
I don’t know what John will say but I think the DJI will bottom out at 7500. What do others think?
I think it will drop to pre-1996 levels — the level where the banks were forced to start making loans to those who couldn’t afford it. That is what the properties are really worth so that should be about right.
Unfortunately, the dollar will be severely devalued by then so it will feel much worse.
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!
#60 Of course you’re right, in hindsight.
I bought the 2003 block for just under $16 pre-split so I feel AAPL owes me nothing. I haven’t bet the farm on it or anything – it’s certainly not the core of my investments these days which is in really boring stuff.
Smart? Probably not. That one is a hobby stock and I still like them.
#58 – you may think we’re talking about the same person, but I can assure you…we are not.
Named, don’t get specific or else men dressed in black will come and erase your memory.
The United States, where some of Wall Street’s 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.
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Internet marketing
Quote: # 12 JimD said, on October 10th, 2008 at 9:50 am Hell of a job, Dumbya and the Repukes !!! DESTROYED AMERICA IN ONLY EIGHT YEARS !!!
Unquote
You are too biased or too stupid to understand the history of the debacle, which is widely available. Ignorance is bliss.