CDN-Economy & Related Factors

petros

The Central Scrutinizer
Nov 21, 2008
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Not according to what I read this morning. Seems a lot of bull is being peddled by dirt pimps to make the gullible think they must buy now, at inflated prices.. Especially the condo market in Victoria.
There is a lull in development.
 

bob the dog

Electoral Member
Aug 14, 2020
551
381
63
Greetings All,

Very new to CanadianContent and happy to have found a forum to discuss matters related to Canadian economics and finance.

I've had a thing about the banks for a while, and strongly believe we have a financial sector completely out of control.

It's never mentioned but chartered banks in Canada suck $50B in profits from the Canadian economy annually despite paying ludicrous salaries to top executives. Canadians are left with the air that we breathe for their services. It is my opinion that the pursuit of profit by all means possible is not a reasonable organizational objective given they enjoy the support of the Canadian government through their relationship as a chartered bank.

It's huge and they are after every nickel. One of the most beautiful bank convenience things is they get to expense and write off bad investments. Banks can afford to drive share prices down by shorting and write off the loss while doing so. Every investment is guaranteed for them.

The latest new thing is loan loss provisions. I had never heard the term until recently. I assume this means they take money they would have had to pay tax on and don't pay tax on it. I'm not claiming to be a financial genius but I can recognize bs when I see it.

The one that really started me is that I can buy an American stock for $9.99 / trade or less depending on # of trades. If I want to buy a stock on any of the other 16 world markets with trillion dollar market caps the commission is $250. How can foreign policy allow such an advantage that surely helps direct 98% of Canadian holdings through the New York stock exchange. We don't even extend the deal to Commonwealth partners. RBC is not going to make the change on their own. They like it like this. Easier to control for them.

Anyway... not organized enough to lay it all out here now. Hoping some might comment and add insight or correct me if I am wrong. I have more ideas and look forward to participating in future threads. Apologize for the ramble. Best wishes to all.
 

gerryh

Hall of Fame Member
Nov 21, 2004
25,545
180
63
Greetings All,
Very new to CanadianContent and happy to have found a forum to discuss matters related to Canadian economics and finance.
I've had a thing about the banks for a while, and strongly believe we have a financial sector completely out of control.
It's never mentioned but chartered banks in Canada suck $50B in profits from the Canadian economy annually despite paying ludicrous salaries to top executives. Canadians are left with the air that we breathe for their services. It is my opinion that the pursuit of profit by all means possible is not a reasonable organizational objective given they enjoy the support of the Canadian government through their relationship as a chartered bank.
It's huge and they are after every nickel. One of the most beautiful bank convenience things is they get to expense and write off bad investments. Banks can afford to drive share prices down by shorting and write off the loss while doing so. Every investment is guaranteed for them.
The latest new thing is loan loss provisions. I had never heard the term until recently. I assume this means they take money they would have had to pay tax on and don't pay tax on it. I'm not claiming to be a financial genius but I can recognize bs when I see it.
The one that really started me is that I can buy an American stock for $9.99 / trade or less depending on # of trades. If I want to buy a stock on any of the other 16 world markets with trillion dollar market caps the commission is $250. How can foreign policy allow such an advantage that surely helps direct 98% of Canadian holdings through the New York stock exchange. We don't even extend the deal to Commonwealth partners. RBC is not going to make the change on their own. They like it like this. Easier to control for them.
Anyway... not organized enough to lay it all out here now. Hoping some might comment and add insight or correct me if I am wrong. I have more ideas and look forward to participating in future threads. Apologize for the ramble. Best wishes to all.


Then dont use a chartered bank. No one is forcing you to.
 

Hoid

Hall of Fame Member
Oct 15, 2017
20,408
2
36
Greetings All,

Very new to CanadianContent and happy to have found a forum to discuss matters related to Canadian economics and finance.

I've had a thing about the banks for a while, and strongly believe we have a financial sector completely out of control.

It's never mentioned but chartered banks in Canada suck $50B in profits from the Canadian economy annually despite paying ludicrous salaries to top executives. Canadians are left with the air that we breathe for their services. It is my opinion that the pursuit of profit by all means possible is not a reasonable organizational objective given they enjoy the support of the Canadian government through their relationship as a chartered bank.

It's huge and they are after every nickel. One of the most beautiful bank convenience things is they get to expense and write off bad investments. Banks can afford to drive share prices down by shorting and write off the loss while doing so. Every investment is guaranteed for them.

The latest new thing is loan loss provisions. I had never heard the term until recently. I assume this means they take money they would have had to pay tax on and don't pay tax on it. I'm not claiming to be a financial genius but I can recognize bs when I see it.

The one that really started me is that I can buy an American stock for $9.99 / trade or less depending on # of trades. If I want to buy a stock on any of the other 16 world markets with trillion dollar market caps the commission is $250. How can foreign policy allow such an advantage that surely helps direct 98% of Canadian holdings through the New York stock exchange. We don't even extend the deal to Commonwealth partners. RBC is not going to make the change on their own. They like it like this. Easier to control for them.

Anyway... not organized enough to lay it all out here now. Hoping some might comment and add insight or correct me if I am wrong. I have more ideas and look forward to participating in future threads. Apologize for the ramble. Best wishes to all.
Banks used to make money by lending.

Now they make money by service charges.

That s the biggest change I have seen in banking - and I am old enough to remember when you lined up at the teller with the shortest lineup
 

pgs

Hall of Fame Member
Nov 29, 2008
20,759
1,577
113
B.C.
Greetings All,

Very new to CanadianContent and happy to have found a forum to discuss matters related to Canadian economics and finance.

I've had a thing about the banks for a while, and strongly believe we have a financial sector completely out of control.

It's never mentioned but chartered banks in Canada suck $50B in profits from the Canadian economy annually despite paying ludicrous salaries to top executives. Canadians are left with the air that we breathe for their services. It is my opinion that the pursuit of profit by all means possible is not a reasonable organizational objective given they enjoy the support of the Canadian government through their relationship as a chartered bank.

It's huge and they are after every nickel. One of the most beautiful bank convenience things is they get to expense and write off bad investments. Banks can afford to drive share prices down by shorting and write off the loss while doing so. Every investment is guaranteed for them.

The latest new thing is loan loss provisions. I had never heard the term until recently. I assume this means they take money they would have had to pay tax on and don't pay tax on it. I'm not claiming to be a financial genius but I can recognize bs when I see it.

The one that really started me is that I can buy an American stock for $9.99 / trade or less depending on # of trades. If I want to buy a stock on any of the other 16 world markets with trillion dollar market caps the commission is $250. How can foreign policy allow such an advantage that surely helps direct 98% of Canadian holdings through the New York stock exchange. We don't even extend the deal to Commonwealth partners. RBC is not going to make the change on their own. They like it like this. Easier to control for them.

Anyway... not organized enough to lay it all out here now. Hoping some might comment and add insight or correct me if I am wrong. I have more ideas and look forward to participating in future threads. Apologize for the ramble. Best wishes to all.
You are free to use Credit Unions .
 

pgs

Hall of Fame Member
Nov 29, 2008
20,759
1,577
113
B.C.
Banks used to make money by lending.

Now they make money by service charges.

That s the biggest change I have seen in banking - and I am old enough to remember when you lined up at the teller with the shortest lineup
Banks make money by lending imaginary money and collecting interest .
 

Hoid

Hall of Fame Member
Oct 15, 2017
20,408
2
36
Canadian housing market breaking records left and right.

July 2020 prices up 14.4 % over July 2019

Home sales up 25%

Average house price $571K - including all markets - when you exclude Toronto and Vancouver from the national average the avergage comes down substantially

This is during a pandemic?

What this shows and why it was predictable is that Canadians believe in real estate. Generation after generation of Canadians know that putting your money into real estate is the single best investment you can make.
 

petros

The Central Scrutinizer
Nov 21, 2008
96,819
2,764
113
Moccasin Flats
Can't remember if the article I read was in the Orca or THe Capital. There was some rule changes that put a damper on condo speculation.
Real estate is bustling everywhere. These days people have time to move. It's a time consuming ordeal.
 

bob the dog

Electoral Member
Aug 14, 2020
551
381
63
Canadian housing market breaking records left and right.

July 2020 prices up 14.4 % over July 2019

Home sales up 25%

Average house price $571K - including all markets - when you exclude Toronto and Vancouver from the national average the avergage comes down substantially

This is during a pandemic?

What this shows and why it was predictable is that Canadians believe in real estate. Generation after generation of Canadians know that putting your money into real estate is the single best investment you can make.
What kind of lender would extend terms in this precarious economic environment. Banks don't care. They will give anyone a mortgage if they have a down payment. Loading people with debt is their favorite thing.
 

Hoid

Hall of Fame Member
Oct 15, 2017
20,408
2
36
What kind of lender would extend terms in this precarious economic environment. Banks don't care. They will give anyone a mortgage if they have a down payment. Loading people with debt is their favorite thing.
People are loading up on equity.
 

bob the dog

Electoral Member
Aug 14, 2020
551
381
63
Holding euros could be a good strategy. Better to have a group of dummies than just one on their own.

Canada ranks behind Portugal in gold reserves. Not sure what will support the dollar.
 

bob the dog

Electoral Member
Aug 14, 2020
551
381
63
Good story on one of our Order of Canada members and pillar of society. The fine was a pittance of what he made on the deal.

WATSA's REPUTATION TARNISHED BY QUEBEC JUDGE RULING
Canadian investor Prem Watsa was “purposely forgetful” and offered a “mindboggling” explanation in court testimony explaining why he backed a low-ball bid for a pulp mill in a sale to Resolute Forest Products Inc., a Montreal judge concluded in the seven-year-old case.
Testimony by Watsa, chairman and chief executive officer of Fairfax Financial Holdings Inc., was so problematic it helped convince Montreal Superior Court Justice Michel Pinsonnault to award some Fibrek Inc. shareholders C$13.5 million ($10.2 million), plus interest. Fairfax “was in a blatant conflict of interest situation,” the Quebec judge said in his Sept. 26 ruling.
“Watsa’s testimony was so vague and filled with so many uncertainties, unlikelihood, unsubstantiated denials and contradictions that it is very difficult for the court to give credence to the affirmations and explanations of the witness whose memory appeared to be failing on the most crucial aspects of his testimony,” Pinsonnault said.
A spokesman for Fairfax disputed the judge’s conclusions, and said the company may appeal.
“The decision distorts the facts, does not make business sense and unfairly characterizes Mr. Watsa’s testimony,” said Paul Rivett, Fairfax’s president. “All of Mr. Watsa’s statements were true and Fairfax acted throughout with honesty and integrity. We expect that the ruling will be appealed.”
The case centered around Resolute’s December 2011 offer for Fibrek. Fairfax was the most important shareholder and insider of both Fibrek and Resolute, according to the judgment, having helped both companies survive financial difficulties in 2010. Toronto-based Fairfax agreed to sell its 33 million shares to Resolute for C$1 apiece -- locking in a price that dissenting shareholders considered too low. The judge considered the fair value of Fibrek shares to be C$1.99, and found Watsa’s explanation for accepting less “mindboggling”.“It was obvious to the court that the witness was a reluctant witness not pleased to have to testify at the request of the dissenting shareholders’ lawyers who had accused Fairfax of being complicit with Resolute in the abusive hostile take-over bid scheme to the detriment and prejudice of the dissenting shareholders,” the judge said, adding that the court also found “that Watsa often appeared to be on the defensive and when pressed on crucial factual elements, the witness hastily took refuge behind ‘I do not remember’ or the like.”Watsa had decided that Fairfax would sell its Fibrek stake in February 2011, but didn’t want to do it on the open market, according to the ruling. So he seized the opportunity in May of that year to sell the stake to Resolute. The judge said the cash price was “of no significance” to Fairfax because it would convert the Fibrek shares into Resolute shares. The other shareholders were bound to a “conveniently” low cash price offered to and accepted by Fairfax, the judge said. Read more on Fairfax losses from Stelco, BlackBerryFairfax, whose holdings include insurance companies, media and BlackBerry Inc., is the largest shareholder of Montreal-based Resolute, whose shares have plunged 40% this year.