Banks and Credit Unions

[cottonpicken]

Sum,i've spent time on this and have not found
anything reliable.

The ceo of nova scotia bank(?) was on bnn a while
back and they asked him a direct question as to his
exposure to europe and he said"we are exposed,but
i'm not going to tell you how much",so just from that
i think you have to do your own speculation.

3 trillion dollar system,200% gdp
canadian mortgage size 1.2trillion of which 600
billion is nationalized through cmhc
Average leverage ratio 15-20%

Unescapable mathmatical facts:if the assets of the
average bank decline 10 percent,the bank is done

If 10 percent of deposits leave the bank,the bank is
done aka bank run

So when,not if,the credit default swap(bond
insurance) system implodes,what are those bonds
worth?

Many arguments have been made that ALL banks are
insolvent.

[HappyFarmer]

I have had this same argument with my
friend, and bank manager i don't know
how many times cotton. He tells me that
are 100% free and in the clear if all
hell breaks loose.

If a bank/credit union are carrying a
500k mortgage and that asset falls in
value to 200k, there isn't anyone out
there who can protect themselves from
that losses, regards of who is
guaranteeing any loan or deposit!

[cottonpicken]

Typo-15-20xlevered;some european are 40 to 1.

I tried to find a way in on naked cds in the
toronto/vancouver credit unions but couldn't, the
only way to capatilize is to short the europe
financials,but now i wonder with new "bail in" curve
ball throwen at us.

Seems to be another hail marry pass to provide
stability to the system,which is running out of time
and options.

In the end the debt has to be flushed.

[wedino]

[sumdumguy]

Where is our government?

[BTO_farmall]

sumdumbum,

They're Busy Doin The Harlem Shake!!!!!!!!!!!!!!!!

[Hopperbin]

Well before anyone knocks the local not the big city ones cause their Conexus sorry mentioned a name, Conexus in my opinion is very impersonal I guess they are big have to go by rules or what ever so cannot knock them for being so impersonal. I better not mention that their patronage dividend is about 10 percent of the smaller locals also, no I did not mention that. Was a nice surprise to transfer 12 grand from my local credit union equity account to my checking account last year. Does not actually aquire interest so should do it every year but is the way.

[WestwardHO]

If a lender has a loan/mortgage out for $100,000, and the value of the asset drops 10%, they aren't out a single nickle. Their asset is the loan, and is only in trouble (not as big a trouble as the borrower) unless it goes to default. Banks are full of crap if they force a person out because of a fall in asset value, as long as the loan is being paid. Its all on paper until the shit hits the fan.