Joseph L. Shaefer

O Canada! (Part I): Investing in the World's Soundest Banking System

Yes, I knew that. That’s a government guarantee for $60 billion worth of mortgages for EVERY Canadian bank in the country! But did YOU know that would be equal to what American taxpayers guaranteed for ONE bank – not to mention the $180 billion for AIG!

(From the Fed’s website: “The Federal Reserve Bank and the United States Treasury by May 2009 had increased the potential financial support to AIG, with the support of an investment of as much as $70 billion, a $60 billion credit line and <<< $52.5 billion to buy mortgage-based assets >>> owned or guaranteed by AIG, increasing the total amount available to as much as $182.5 billion.)

I decided, relative to the size of Canadian banks and the fact that, well after those guarantees were granted, the World Bank still ranks Canada the soundest banking regime of 186 countries in the world, this was too small a part of the Canadian banking story to sidetrack into.

I tell you what – I’ll by the three biggest Canadian banks and you can buy the three biggest US banks and we’ll compare notes in a year. Or two. Or ten!

Cheers and best wishes,
JS


On Oct 05 10:25 AM Themoose wrote:

> umm.. did you know the gov't of Canada took 60 billions dollars of
> mortgages off the Canadian Banks balance sheets? Didn't see any mention
> of that in your article? If you think your bankers are chum chum
> in the states our bankers and gov't are family. I guess it's best
> not to know what's really going on right?