With many businesses shut down and many people idled there will soon be defaults on mortgages and loans. Shit has not hit the fans for the banks yet, but it will.
The banks will be in trouble soon. ( around the world )
- Thread starter Ceiling Cat
- Start date
You could be right. I made a good chunk of money on banks in the last few weeks and I am contemplating cashing out. This is far from over.
There are several strategies you can use on this matter. Cash out at the first signs of weakness, hopefully you make a few bucks between now and then and you may not lose anything if you are quick or lose much less than you gain in the time between now and cash out time. You can cash out 50 - 75% now and let the rest ride. Ithink you will see plenty of signs when things start to happen.
US banks might be fine.
The fed bought like 95% of junk bonds (something to that effect). Even if debts go default, banks will survive.
The fed bought like 95% of junk bonds (something to that effect). Even if debts go default, banks will survive.
There is no doubt they will survive, just as they survived many previous financial crisis. What shape will the bank be in after the crisis. How will they look as an investment in one year?
When there are no buyers for inflated homes the prices will drop. People would have lost their businesses, the stress of the crisis may cause divorces. Some will have to sell Will the bubble in housing cost in the GTA and Vancouver burst?
The world financial system would have collapsed in the 2007 - 2009 Great Recession without massive government intervention.
We have never really recovered from that, just kicked the can down the road by creating bubbles.
The Bank of Nova Scotia hit a 60 day low today, that was only $4 above the March 4 slump low. That is even without the expected news of all the business and personal loan defaults. My guess is that BNS will revisit the March 4 lows of -40% and zig zag down another 20%, with the other banks following. At the lows the stock market will be worth 25-40% of their pre crisis levels.
Government will bail them out no problem.
It’s always the average working guy that really feels it not banks or GM or Ford, or even the major airlines.
They will be the first with their hands out and first to have them filled by our tax money.
It’s always the average working guy that really feels it not banks or GM or Ford, or even the major airlines.
They will be the first with their hands out and first to have them filled by our tax money.
I think we are mixing two different topics together in this thread. Some people are saying that the government will back loans to the banks so that there will be money to lend out to keep people from going bankrupt or losing their homes. I am saying that the bank stock prices will take and drop to about 25% of the price pre-covid-19. The stocks will recover, it may take years.
why not just reset to zero dont bail banks.Its the taxpayers money going to banks.Lets just hit the reset like we do in the cars odometer for distance travelled.The lizards that own banks dont need more money. There may be a handfull of super wealthy that control.There are 30 million of us, I say we dont pay and we stay put .In a nice easy way FUKUM.
the problem will be for the millions of folks that will suffer if a single bank goes under.
So in examining TD's and Royal Banks quarterly reports it seems they have large amounts of liquidity and great balance sheets. I own a fair amount of both. I don't see the need to sell them or be nervous sice they're so well run.but once they get above their post covid value I may trim a small amount of capital gain. While leaving my initial positions intact. They're so well run and I'm such great shape plus they're backed by the Canadian government.
I suspect that Trudeau and the other world leaders have put off telling the world how bad things really are. The Trudeau has announced that he will be giving a preliminary report of the cost of the covif-19 crisis. The U.S. government will be doing the same soon as well, as will the rest of the world governments. Reality is about to set in soon. Shutting down a business for 3 months is not a small thing even if it has re-opened business is down. Big business will have less revenue with additional cost. There will be personal and business loan deafaults, Canadian banks will survive, but the news of smaller American banks going under will cause panic,
