Monday, December 13, 2010

A quick post on the Canadian banks..

Firstly I am going to say something about them, I never thought I would- I am impressed. They are all barking at the Federal Government telling Flaherty to do something about the huge consumer debt and have suggested dropping mortgage durations or increasing down-payments.

Now it is a bit late. The horse of debt has already bolted, the bubble of housing is already super-inflated..but at least they have come to their senses. Can you imagine the hyenas on Wall Street ever asking for the gravy train to be stopped?? Of course not.

Anyway it is a start. The Federal Government has now heard from Carney (our own mini-bubble meister) and the Bank bosses to make them reign in lending. They cannot ignore it for much longer.

BTW- anyone notice that the Royal Bank has lost it's pristine rating. Why? Because of the Royal banks involvement in World-wide capital markets AKA gambling. What is it with bankers. A bunch of boring conservative folks who make great money from mortgage clipping and bank fees suddenly want to go to Vegas and blow the whole stack on the craps table.

They all do it.

They all hire these whiz kid traders, who are really just professional gamblers, playing with our money and when they lose, they lose big.

Like the Bank of Montreal did on gas!

When they take these huge losses I wonder if they ever go back to the heads of trading operations ($5 Million + a year) and say- " We want the bonuses back for the last ten years'. Of course not.

Anyway my purpose was not to knock our banks, but to offer them a little praise..NOW perhaps they will stop making those STUPID ads with a middle-aged couple taking equity out of their homes to travel around the world or buy a sail-boat. Maybe they can keep that equity so they (we) don't become even a bigger burden on the next (totally screwed) generation.


  1. Will they finally stop with the "You're richer than you think" ads?

  2. I hope so, what dork thought that piece of garbage up?

    It should be- lease a car you cannot afford to buy, borrow money you can never hope to repay and 'you will feel richer than you really are'

  3. went to the back last week (CIBC) to pay my monthly Visa off...and the teller goes "you should get a Line of Credit, it has a better rate".
    Trying to entice me to borrow money.
    I said to her "why would I do that, I have no debt and haven't had any for 5 years".


  4. City of Love: