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Six Canadian banks get a one-notch downgrade from Moody's as high levels of consumer debt and...
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Monday, January 28, 1:45 PM ETSix Canadian banks get a one-notch downgrade from Moody's as high levels of consumer debt and bubbly housing prices leave the lenders "more vulnerable than in the past." The agency also notes banks' reliance on "confidence-sensitive wholesale funding, which is obscured by limited public disclosure." Among those cut: BMO, BNS, CM, TD.
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This news story has 18 comments:
that's an old story, sinns of the past.
It's the present that counts. And the present tells me commodities producing countries are not doing well, neither do their banks.
In the meantime the general public are not yet aware of that paradigm shift and keep on spending and aggravating their debts.
It looks ugly for the maple leaf. Speaking metaphore:
http://huff.to/XOOEKV
Aaaaah, what's a secure asset nowadays ? Homes ? They thought that in the US too.
Apple ? Not anymore.
Until yesterday, I thought gold was. At least that bears no cost to keep it.
they have every reason to.
1) this is a Buy Signal
2) Maybe TD Bank should buy Moody's
Seriously - I am absolutely no authority
This downgrade was issued because of concern about the rise in the Canadian house hold debt to income ratio - and the Bank's exposure to it.
However, much of the revenue from Canadian banks comes also comes from international operations - the States, Europe and Latin America.
Also, Canadian Banks are presently buying international financial companies at bargain prices.
Canadian banks have stable earnings growth - however, I think the real question is - Are they going to be able to sustain their earnings growth ?
never catch a falling canadian knife.......
I never invested in bank stocks. But if this downgrade drives the stock prices low enough, I wouldn't mind jumping in and make easy money (if the market doesn't crash :P).
indeed, and that reminds me.......
tsssss, tsssss, Moody's is always right, as we experienced in Europe.
They are protecting Obama. Anything for Obama.
If a Republican was in office, we'd be junk-bond grade by now. Which we deserve after Obama (and Bush) added mountains of debt to the federal deficit.