Banks .....

[furrowtickler]

Scotia Bank - made $7 bill last year and just cut a lot of jobs .
One reason was under performing assets , well ....
Investors paying huge sums for farm land will be faced with under performing assets as time march's on - just ask Sprot and co.
The earlier post by Lesm is a good example - what is land worth ? Well as long as the 'asset' has positive returns it's all good - but when it turns negative off a huge investment ???? Again time will tell .

[Hopperbin]

Well dont worry about the bank will loan me only 80, 000 on a 300, 000 land parcel. So in my opinion the bank if I give it back they will be quite pleased.

[Hopperbin]

Our banks are very strong

[Oliver88]

Canadian banks pay a 4% or higher dividend usually.

[cottonpicken]

Median canadian home prices are fifty percent higher than when the us corrected. We could see a blood bath dwarfing the us's. Our morgage bankrupcies laws are also different. Not as easy to walk away.

[cottonpicken]

Should note one of the things thats been going on with the financial crisis's is the size off of the hosts countries banking system in relation to gdp.

Pryer to 08 nobody had done the work. Now its widley tracted.

Canada sits at around 200 percent which is not that great but nowhere near the cluster **** going on in europe.

[sumdumguy]

Investment Advisor in Saskatoon tells me banks have cooled off on commodities in general and farm land in particular. That's just peachy after their hype got some guys in so deep, they'll never see the light of day. I've heard many times over the years that they don't make any more farmland...except more is made every day. Farmers are breaking up pastures, draining sloughs, pushing bush as fast as they can. Land that was covered with sage all the way to the US border is cultivated. Oops, better not say cultivated because its One-Till or No Till.

[furrowtickler]

That's the sad part , they are strong $7 bill in profits yet still laid people off .....
A lot of it had to do with just a few under performing assets ... Land will be one of them

[SASKFARMER3]

Don't get me going on this topic.
One idiots in the cities the banks will give them a line of credit on their home for 70% of value with a appraisal or 60% with nothing.
No questions asked.
So on a 750000 home 525000 to spend on what ever they need. FM!
Yet when I do a land deal on 1.48 mill of land for 140000 they say that isn't really a investment you cant live off of equity. FM again.
Yes farm land has issues, Big ones but really I think the cities have huge issues that no one is looking at.

[sumdumguy]

I couldn't believe it when I heard on the radio last week, an ad for mortgages that give the mortgagee 10% cash back when you take a mortgage. cash back -back from what?

[farmaholic]

Sumdumguy, you'd better get a contract and read the fine print on that one.

[farmaholic]

Mortgage fees????

[mbdog]

Orderly incremental deflation thru time using "market" rotating thru all sectors....looks like the banks are throwing up a flag. Party over for now in some parts of the resource sector....ripple effect to clobber non resource assets in todays world. Everything lining up/having to deal with global competition, entitlement and governments moving to user pay. Shakey floors on all assets. Opportunity for others.

[sumdumguy]

My understanding is that if you took a $250,000 mortgage, they would put $225,000 into the house payment and give you $25,000 cash to spend, say on new furniture or booze. I will try to check it out.

[cottonpicken]

Omg,did you really hear that sum?

That scheme was suppose to have ended a few years ago,when it was only 5%!

Basically letting people get a morgage with no money down.