Canada's Banks "The Great White Short"

[errolanderson]

Market cannot bear any type of normalization of rates. Doesn't leave them much room to fend off the next recession unless they go negative with rates. Wheres helicopter Ben? We need him back to keep the massive everything bubble from imploding.

Too late . . . global debt bubble has already been pricked (IMO).

[biglentil]

For now it appears the USD is the cleanest dirty shirt.

[phoenix64]

Sumdum, the Hutterites are pacifist and would be heading for the hills unless of course they could find someone else to pick up a gun and protect themselves and their countrymen lol

[sumdumguy]

Guess one should stock up with gunpowder and keep it dry - really dry.

[AlbertaFarmer5]

Ive never really gotten behind the idea of precious metals. Like Grahamp says, are you going to hike silver and gold around to pay for groceries? Who is going to accept gold and silver as payment? Will they be paying their suppliers in gold and silver? What would it really be worth if shit was to melt down. Can it provide sustenance when you're hungry? Can it keep you protected from the elements when it's storming? Can it really do ANYTHING for you? So you have a literal tonne of gold stored in a vault. You want a chicken, and the poultry farmer says, it'll be worth an entire tonne of gold? When you're hungry enough, whats worth more, the tonne of gold or the chicken to you? And, if everything were to go to gold and silver, how on gods green earth do you expect to be able to protect it? The ONLY things that will be considered precious if things were to completely flush down the toilet are guns and ammunition! You have a tonne of gold or silver but no ammunition? The guy with a loaded 9mm handgun, now has your tonne of gold and silver.

Well said. Unless you have some inside information on when the collapse of society is going to happen, and what form it will take, and how long it will last, and the ability(and will) to defend the precious metals, one is far better off remaining in society, investing in productive assets which pay dividends or make profits, reinvesting those, and enjoying life while it lasts.

I met a guy about 10 years ago who was convinced the world was about to end and everything was a conspiracy. Invested in precious metals in preparations, mid 2011 he put nearly everything into gold, sold his property, vehicle etc. He had inherited a small fortune so had a lot to invest. Last I heard he was still waiting for his investment to get back to even. May look brilliant some day, but the lost opportunities in the mean time, in nearly anything else is just sickening.

[biglentil]

Well said. Unless you have some inside information on when the collapse of society is going to happen, and what form it will take, and how long it will last, and the ability(and will) to defend the precious metals, one is far better off remaining in society, investing in productive assets which pay dividends or make profits, reinvesting those, and enjoying life while it lasts.

I met a guy about 10 years ago who was convinced the world was about to end and everything was a conspiracy. Invested in precious metals in preparations, mid 2011 he put nearly everything into gold, sold his property, vehicle etc. He had inherited a small fortune so had a lot to invest. Last I heard he was still waiting for his investment to get back to even. May look brilliant some day, but the lost opportunities in the mean time, in nearly anything else is just sickening.

The right thing at the wrong time is the wrong thing.

[hobbyfrmr]

Market cannot bear any type of normalization of rates. Doesn't leave them much room to fend off the next recession unless they go negative with rates. Wheres helicopter Ben? We need him back to keep the massive everything bubble from imploding.


Canada is even in worse shape, good thing Trudeau legalized the bail in. What's a little 20% haircut off everyone's bank accounts.

It was definitely the Harper conservative govt that legalized the bail in for the Canadian bankikg system. I am not very political and thought Harper was doing well enough but I remember when this was announced and I had a hard time believing any PM would make it legal for banks to “take” from people’s deposits to save banks that have been profiting handsomely without apology for at least a decade.

[errolanderson]

According to an article in the Financial Post,, 80 per cent of Canadian companies outside of the financial industry are not generating enough cashflow to support their business activities. This appears to be a huge, mounting risk to Canada’s banks.

This also suggests that mortgage rates and overall interest rates may be under pressure heading into 2020.
Bank of Canada rate cut possible by fall (IMO).

[beaverdam]

errol, "Bank of Canada rate cut possible by fall (IMO)."

Where, at what level, would that put the CAD ?

[wheatking16]

Buy Bitcoin

[SASKFARMER3]

Bitcoin is dead early guys in made money the rest are hoping for a recovery.

This is serious.

Yes, household debt in the cities is huge.

Rural farm debt topped 100 billion.

The Hutts aren't as strong financially as one thinks. Why do you think they are starting welding shops and siding and other things besides farming. Cash.

[errolanderson]

errol, "Bank of Canada rate cut possible by fall (IMO)."

Where, at what level, would that put the CAD ?

Should Alberta election turn into a blue wave next week, our loonie may actually rally . . . .

An opinion, the June Cdn dollar has technical support at 74.50 cents and next major support at 73.50 cents U.S. . . . hestitate to say lower. Should rebound takes place, the June could break above 76 cents with heavy resistance at 76.50 cents U.S. Currencies difficult-to-predict . . . .

Don't pay into the big-time bear forecasts (62 cent loonie) that got huge headlines recently. U.S. has huge economic problems straight ahead which could pressure the USD (IMO) . . . .

My two-bites . . . .

[macdon02]

Bitcoin is dead early guys in made money the rest are hoping for a recovery.

This is serious.

Yes, household debt in the cities is huge.

Rural farm debt topped 100 billion.

The Hutts aren't as strong financially as one thinks. Why do you think they are starting welding shops and siding and other things besides farming. Cash.

BTC may not be dead yet, something is going on there and idk why exactly, (China banning mining). I won't touch it as govt has already attached the "criminal and tax cheat" label to it and can deem it illegal at any given moment. But it could run over the previous highs.

[SASKFARMER3]

Errol what am I missing on the USA.

200000 new jobs and Canada loses 8000.

Building and shopping and etc all going on down south.

Yes, Ag has slowed to a crawl but they are snapping up Canadian equipment as witnessed by Mondays sale.

Oil pumping going on in the USA and Canada No.

A trade deal with China.

We lose trade.

So explain what am I missing.

[errolanderson]

Errol what am I missing on the USA.

200000 new jobs and Canada loses 8000.

Building and shopping and etc all going on down south.

Yes, Ag has slowed to a crawl but they are snapping up Canadian equipment as witnessed by Mondays sale.

Oil pumping going on in the USA and Canada No.

A trade deal with China.

We lose trade.

So explain what am I missing.

SF3 . . . no trade deal with China (that is a pipe-dream IMO) and a U.S. debt bomb ready-to-blow. No trade deal with China = U.S. recession (IMO). Fed may have to cut rates which could trip-up the American dollar.