KIT

High Expectations for Canadian Banks Is Unrealistic

>Another point, is that the Canadian economy has not suffered to the extent of the global downturn in most of the advanced world. It is true that real estate values have dropped in Canada, but to a fraction of the drop in the US and Europe. The Governemnt Balance sheet is very sound with accummulated budget surpluses for more than a decade. All this bodes well for the banks and their future performance. Here is a comment I wrote on a recent post on RY's write down of goodwill:

" Canadian Banks have always had a very conservative and at times boring posture, and this is just another confirmation that they prefer to keep clean books.

Canada is not that great............

Canada just injected (stimulated ) the total amount we taxed over the last ten years.We no longer have a surplus. Interest rates near zero and the govt is about it print money at the first down slide. We sold to other counties most of our commodies companies. We are now a one trick pony with oilsands that cant afford to expand and cant make money in recession based oil prices

Canadian banks dropped the 20% down on mortgages long ago and replaced it with 5%. Young people left rentals and bought as they found out their friends could get equity loans ( got to keep up with the Jones ! I watched salemen signing up 25 - 30 year olds on $200,000 homes in Calgary in 2005 6 and 7. Average wage no more than 40K for skilled workers ( truck drivers ect ) 32% gross for mortgage is far exceeded 50 to 70 % of total income is comon

Canada is showing growing unemployed but we do not show the huge number of part time worker who are Employed with zero hours per week.

The place I work and I am sure other companies right sized and piled on the overtime 15 to 20 percent. Since the crash huge cuts in OT have workers screaming. They on mass layed off all contractors.

Disposable dollars are gone and those homes in Calgary cant withstand the losses... Canadian banks are the envy of the world is just so many parrots repeating OLD NEWS

Reality is putting your head in the sand wont save the house. Or the banks BAD investment