Tuesday, April 17, 2012

The myth of Canada's strong financial sector.

Carney and Flaherty have made a lot of hay boasting about how strong our banks are. They have been lecturing the poor Europeans and Americans. Of course the truth is very far from this fantasyland. The only reason we have 'strong banks' is because the risk of high leverage mortgages has already been pre-transferred to the tax-payer, via the CMHC.

These three graphs will show you how different things are in reality and how potentially dire:









Kudos to the Economic Analyst for the first two charts.

5 comments:

  1. There is even a rumor going round that Carney will be asked to ruin..sorry I mean run.. the Bank of England once Mervyn King retires...

    Maybe they need look at the above graphs before making any job offers.

    ReplyDelete
    Replies
    1. "Mark Carney denies he was offered Bank of England job."
      "He seemed even less categorical when asked if he will commit to serving out his term in Canada, which runs to 2015."

      Read one comment in FP? or G&M?, begging him to be patient and to replace Bernanke that is a more prestigious post.
      Note: his second term as Chairman ends January 31, 2014.

      Delete
  2. How did you like the material I sent you?

    ReplyDelete
  3. Hi Makaya

    I haven't had a chnace to get to it.

    Hopefully this week-end

    ReplyDelete
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