Summer Crash?

[ajl]

Right now the central banks have two choices and no one like either: let interest rates rise or eliminate the currency. The former was the choice made in 1980 to deal with runaway inflation and is the smarter of the two choices now. Banks will collapse but that is something that needs to happen in canuckistan anyways as our banking sector is way too big. Start now with consolidating banks so it will not be as messy later.

[foragefarmer]

Hard to believe what poster's put in print on Agriville.

One feels Canadian banks should operate not for profit. Hard to believe someone who supposedly runs a business and is capitalist would even make such as statement. I guess he runs his farm as a not for profit business and that's why he suggests the Cdn banks should run as a cooperative. I guess deep down inside he did support the CWB.

Then the other makes a claim Canadian banks should consolidate, eliminating competition for Canadians needing to borrow money and 10's of thousands of jobs for Canadians. Putting Canadians on the unemployment line collecting EI, less Canadians paying income taxes and the Government deficit increasing. Sounds like someone suffers from a Harpo hangover who made the case for this preposterous idea when he was in opposition. Thank goodness for Paul Martin.


The Cdn big six banks employ 100's of thousands of Canadians and have trillions in assets, who operate throughout many countries. Canadian banks are a business success.

Always negative towards any Canadian from these two.

[biglentil]

Unfortunately for Keynes, he is dead wrong in this economic environment. Great for economic textbooks though!

Really dead wrong? Keynes understood fully that printing money was the surest way to destroy capitalism and enslave a population. The elite are tickled pink with how well its working and how only 1 in a million understands it.

I agree the banking sector is in big trouble all part of the plan.

[jazz]

One feels Canadian banks should operate not for profit. Hard to believe someone who supposedly runs a business and is capitalist would even make such as statement. I guess he runs his farm as a not for profit business and that's why he suggests the Cdn banks should run as a cooperative. I guess deep down inside he did support the CWB.

I agree totally. Canadian banks should be able to operate at a profit, but regulated to prevent gouging and bad loans.

If people want non profit lenders there are local credit unions and FCC.

Personally because the banks operate as businesses, they are a lot more business friendly than CU or FCC. But each to their own.

[WiltonRanch]

Someone smarter than me please explain why banks need to be for profit?

I hate the obscene profits banks and credit card companies enjoy but if you decree banks be credit unions or such, it’s veering down the road of communism. Sometimes we’d be better if we had more than 5 or 6 major banks for competition but 1000 banks like in the USA is unfathomable. The reason Canadian banks have been successful has been successful is the regulation employed by the feds to limit stupid lending practices which like in the states helped create the 2008 lending crisis with NINJA loans and such. I feel there should be more economic tests employed for loan approvals to prevent sinking ones unable to fulfill their obligations. Credit is a privilege not a right but in my 20 years of being a borrower I’ve seen it getting too bloody easy to attain credit. I think it’s a result of the entitled attitude of younger generations who never seen tough times, and a large supply of funds, coupled with government too afraid to let the house of cards fall. It used to be a lender wouldn’t want to give you too much rope but now they’ll give you a whole coil if you want. It’s scary.

[Old Cowzilla]

I agree totally. Canadian banks should be able to operate at a profit, but regulated to prevent gouging and bad loans.

If people want non profit lenders there are local credit unions and FCC.

Personally because the banks operate as businesses, they are a lot more business friendly than CU or FCC. But each to their own.

Who's getting free stuff from FCC and CREDIT unions. They charge me for anything I want. Most banks could care less about loans ,the big money is in service charges debit cards and credit card fees.

[Austrian Economics]

Rising prices for a host of commodities and assets will do what rising interest rates would have done in a free and transparent capital market.

Rising costs are wringing the profit right out of the manufacturing sector. Businesses cannot afford to upgrade plant and equipment to increase output.

The marginal prospective homebuyer is getting priced out of the housing market. What happens when all those housing tracts are faced with a "no bid" scenario, or a bid that is below cost?

[jazz]

Someone smarter than me please explain why banks need to be for profit?

The same argument will be thrown at why does ag need to be for profit.

I have socialist buddies that think food should be a free public service and a human right.

In a capitalist system, risk is rewarded. Lending to millions of people is hardly risk free.

[bucket]

The same argument will be thrown at why does ag need to be for profit.


In a capitalist system, risk is rewarded.

Rewarded by who? When a company is rewarded by government with grants or subsidies....where is the risk?

Just asking , not an argument,, I think you know where I am going with the question.

As an example so called capitalists like Merit Foods are high on the list of grants. Brandt just received money. Avena foods. Are they capitalists? Brandt had a really good year according to the release.

Are the farmers that get infrastructure and grants gifted to them in the irrigation areas, are they capitalists.

Seems all that are mentioned above are technically socialists.

[errolanderson]

Commodity Price Peak?

Iron Ore Futures slipped 3% following subdued trade data indicating waning Chinese interest in the key steel ingredient. China imported 89.79 tonnes of iron ore in May, down 9% month on month. Tumbling steel prices and smaller profit margins added to the bearish sentiments in the market. Copper now cracking off recent historic highs.

U.S. Treasury yields slipping, now a sign of fading inflation. Pressure on gold straight ahead?

Grains: June swoon?

Crude Oil: Can $70 per barrel hold?

Crypto washout . . . .

Stock market manipulation may be the only glue left . . . .