Canadian Bank Earnings
- Thread starter Darts
- Start date
There are new sharks in the water now. They are call "private lenders" and they are unregulated
Banks are leading indicators. Guys, the banks are safe. Take the money you are not spending on SW's and buy bank stocks. Your old age will thank you.
I hope you are right, but I doubt it. The bankruptcies have not started yet; have the banks not given loans to the restaurants and other small businesses?
That's funny.
The banks loaning to restaurants and small businesses.
Not unless you put up collateral. Like everything you own. If you own a house, you can mortgage it and use the money any way you want. Like opening a restaurant. And if you go broke and don't or can't pay your mortgage, the bank will take your house.
Canadian banks are notoriously stingy.
Hopefully it will be funny. I personally doubt it, but I have been wrong before.
No matter how bad things are for people, the big banks will find a way to make money (and be first in line for government aid if wanted).
That government pressure on them to lower credit card rates won't last long (though they're still miles better than those payday loan places).
That government pressure on them to lower credit card rates won't last long (though they're still miles better than those payday loan places).
That is the news, today. What happens to the bank stocks when quarter after quarter they report commercial and private loan defaults?
Yes, the banks still reported profit, but no one knows how big the loan loss provisions should be. I think some are guessing around 1% of loans will go bad. I would guess much higher than that. I would proceed with caution.
“Audaces fortuna iuvat"
"Fortune favors the bold." One doesn't get wealthy by being timid.
A small business must have impeccable credit to borrow substantially from a bank. As a rule, according to my nephew, who is a loan manager at a TD Bank, they will not touch a restaurant or a bar. Other businesses must have substantial assets and good recurring income to qualify for loans.
In my financial services business, I have found that banks will lend without reservation to fast food franchises such as Harveys or Burger King provided there is sufficient down payment and proper projections from collaboration between the franchisor and franchisee.
The banks are not going to suffer much. During the last recession, Canadian banks were the most liquid in the world. They carefully screen all loans and do not lend out money frivolously.
And there you have the Number 1 reason why the United States has a more powerful economy than Canada.
As fucked up as American banks are, they are much more keen on taking risks than Canadian banks and will take a risk on an entrepreneur that Canadian banks would not hesitate to laugh at. The US banking system favours the entrepreneurial. They have hundreds, maybe thousands of banks all looking to succeed. In Canada we have 5, count em 5 chartered banks.. (Now that said, we all saw how that saved our asses n 2008.)
The thing is, some, if not many of those risks that American banks back will actually succeed and the economy will benefit as a whole. In Canada, it's a case of money makes more money. Why take a risk on a guy who wants to design and manufacture his great idea even if that guy is the next Steve jobs.
The difference is that American banks dont take risk. They are not truly exposed. The fed will eat any significant losses. Even when an American company is drowning in debt or about to go bankrupt their execs still make out with millions in comp. And the fed will still bail them out. You can spend every single penny on stock buybacks and dividends, the fed will still bail you out.
The US government makes sure there companies aren't afraid to reach for the stars so to speak. While the Canadian government will take your business and drive a stake through its heart because a different strain of the flu hit this season. The Canadian government will tell you you can't earn a living because a couple 90 year olds died to the flu. Then Trudeau will go home and sit on his ass and do nothing while his 9 nannies take care of all his shit.
Seniors and pensions are being screwed by the 0% interest rate policy and the massive money printing.
