Where should crude be?

[bucket]

My guess is the auto industry will be back for money inside of a year.

[Guest]

I would be more concerned about the banks since they lent the money based on $70 oil. Wouldnt be surprised if the banks get in line once they cant recover the money from bankrupt oil companies whose assets are worthless. just a thought!

[sumdumguy]

The banks should be regulated. Every year they make billions of dollars and should be required to invest a set portion in a rainy day fund so they can draw on the fund in downturns. Bank reserves won't cover the losses this time. We shouldn't have to bail out these big boys.

[ajl]

Banks are being bailed out with a combination of higher service charges and the spread between the B of C rate and the prime rate. The banks did not pass on all the interest rate cuts last year. There is pressure from the banks for the B of C to drop next week so that the spread can widen more. Solvent borrowers may face higher rates to keep the banks afloat. This happened in the 80s. Governments never raise interest rates. It gets forced on them.

[cottonpicken]

I think that bond space is around 500 billion. Don't know what the npl's will maybe a third ?so 150-200 billion in losses. Wonder about the default swaps are they would have been sold for pennies. I bet some top notch guys are naked and short and about to make a killing.

[cottonpicken]

The Basel treaties where the regulations that got ignored then Greenspan deregulated more which maybe is ok but the real problem is the bailouts but it would have been economic chaos if they hadn't been. So what a tangled web we weave.

[bucket]

Why can't a farmer just borrow from the bank of canada?

Why should I pay a middleman to pre and post finance my farm . And by that I mean I have to store a years inputs and wait for delivery of my output.

It use to be that farmers financed countries purchases .... well still do in a different manner.

Not sure why we need a middleman taking a 5 percent spread.

[perfecho]

And that was the premise of the Comer lawsuit, Bucket. Just think how much Canadian tax payers could save if we didn't have to pay interest on infrastructure ..... Would be very helpful in this kind of economy, rebuild while nothing else happening, keep people working but not have interest pile up on future debt. But the Eubanks have to make their share... Shows you who is in charge.....

[TOM4CWB]

Perf,

Become a chartered bank and find out why the BOC lends to them...

Loan loss provisions...
Assessment of capability to be stable,

In Alberta AFSC is as close as we will ever get to the BOC by cutting out commercials going direct. AFSC is very good. ATB is next.

[cottonpicken]

Bucket feel like getting a headache today?

Who owns the bank of canada?What did a group of albertans do in the 30's?A rabbit hole not worth going down maybe.

[TOM4CWB]

CP,

Alberta still uses the CDN charter... and can... and will I predict under Premier Motley... make our currency outside the BOC.

PM Justin would be very unlikely to find a problem with AB's position...

[bucket]

Cotton

I don't know who owns the bank of canada.

But they are allowing their money to be lent with no return while the middleman (canadian banks) make billions and essentially cripple/hogtie the economy for no good reason.