Saturday, October 27, 2012

It is happening as the bears forecast

The Canadian banks are now on credit watch from Moody's due to the housing bubble...

'The rating agency is now reviewing the banks because they “face challenges not fully captured in their current ratings,” including concerns about consumer debt levels, housing prices, macro-economic risks and the weight of their capital markets divisions within their business mix."

In layman's terms..the banks have leant too much to people well over their heads in debt, especially in the bubbly housing sector, and too much of the rest of their income comes from professional gambling departments ('Capital markets divisions')

The only one missing from the list was Royal Bank, as it has already been down-graded!


  1. Replies
    1. They reap as they sow.....let them explain it to their shareholders.

  2. This is how it started in the US. First the downgrades, then the panic.

  3. "Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend and step off before it is discredited." ~ George Soros

  4. They are still giving out variable rates as low as 2.3% - 2.5%.

  5. "Hong Kong’s new anti-foreigner property tax may catch on elsewhere. Battling the effects of cheap money and capital flight, the territory’s authorities have slapped a 15-per-cent stamp duty on buyers without a permanent resident’s card."

    "The new special stamp duty is aimed squarely at the other driver of Hong Kong property inflation: Chinese buyers. Investors from the mainland seeking a safer place to park spare cash have become an increasing feature in recent years. In 2008, non-residents bought one in 17 of Hong Kong’s newly-built properties. Last year, they snapped up one in five."

    "But when real estate becomes a safe-harbour asset for foreign landlords, many of them effective absentees, that argument no longer applies.

    Singapore has also imposed an extra stamp duty on foreign buyers. Others may follow suit. House prices in central London, for example, have soared in defiance of Britain’s economic gloom as investors seek a haven from the storms of the euro zone. While European law would make it hard to discriminate against buyers from Spain or Italy, local authorities could take other measures, such as imposing extra taxes on owners who leave their houses empty. The anti-foreigner property backlash has some way to run."

  6. Banks and false pretenses, that rhymes.


    "VANCOUVER--Canada’s vibrant and coastal industrial hub, ringed by snow-capped, forested mountains that slope down to sandy beaches, is a favored destination for wealthy immigrants from around the world.

    Many of the 400,000 Chinese residents of the metropolis live in Richmond in the southern part of Metro Vancouver.

    But families of senior Communist Party officials prefer to live away from areas where many compatriots reside.

    They favor leafy suburban areas where it is easier to protect their privacy and escape notice. One such area is West Vancouver, an upscale residential district on a hill overlooking a bay.

    “What is common among them (high-ranking Communist Party officials and their families living abroad) is their tendency to avoid contact with others and limit the scope of their social activities to a small group of people they trust,” said a 48-year-old woman who immigrated to Canada from China three years ago after her husband struck it rich in his business in China."

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