Canada is doing something right

[mojo]

Seems we have the best banking system in the world.

http://www.ctv.ca/servlet/ArticleNews/s ... TopStories



The IMF also predicts we are one of the few countries that will not head into a recession.

Guess we do something right up here....eh?

(and are blessed with great natural resources).

[malmo]

Don't kid yourself. Both RBC and CIBC, with extensive presence in New York, have exposure to the US CDOs (think sub-prime mortgages) and ultra-toxic Credit Default Swaps. Especially CIBC. To their credit, they've been open about their exposure for a couple of years and probably have taken steps to mitigate it.

The CDS market is kind of like a room full of people playing Russian roulette, all with massive bets on each other's demise. It is insanity.

On the face of it CDS sounds like a smart idea - insurance against credit default by those whom you do business with. The problem with it is that it doesn't work. With insurance, the risk of the few is spread among the many. With CDS, the risk of the few is spread among the few. When a financial event does occur that triggers the swap, the liability is just shifted from one big player to another. With all of the banks "insuring" each other against calamity, being both the insurer and insuree, once one goes, the rest must follow.

"Don't worry, I'm hedged" is the banks way of saying "hold my beer, watch this"

[lonewolf]

I don't know nuthin bout bankin or international finance. I am not sure anyone does. It always seemed curious to me that Canada only has about seven or eight banks. I don't know if that is good or bad but if they are all sitting in a circle holding hands depending on each other, it does seem one broken link could be... bad...

[cullman]

Re: Canada is doing something right

Seems we have the best banking system in the world.

http://www.ctv.ca/servlet/ArticleNews/s ... TopStories



The IMF also predicts we are one of the few countries that will not head into a recession.

Guess we do something right up here....eh?

(and are blessed with great natural resources).

CIBC has had a few risky ventures bite them in the ass during the last ten years. Canadian chartered banks are great at hoarding money...they may have to change their outlook soon.

We (Canada) can avoid a recession if we come up with our own (re)definition of recession as we have done in the past. :wink:

BTW, Sweden is number two on that list and their numbers have "dropped sharply" so far this morning.

http://www.thelocal.se/14874/20081010/

cman

[tandfman]

Re: Canada is doing something right

It's more than your banking system.

http://www.prnewswire.com/news-releases ... 60058.html

[Marlow]

Re: Canada is doing something right

I like the underlying premise of this thread title.

Canada is doing something right.

:twisted: :twisted: :twisted:

[Halfmiler2]

Re: Canada is doing something right

The loony is back to a fraction of a penny of the US dollar.

The Fed is doing doing something wrong.