Quote:
Originally Posted by fotze
Why is a country like Germany, who is historically very pragmatic with cash having to bailout a lender and in Canada, so far we have no issues. I don't buy that Canadian banks saw all these American outfits raking in the "cash" these past years and saying "this is not for us". Is Harper right, that all our banks are just fine. How the hell did we happen to get so lucky, I don't buy it.
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Its because the Canadian banks didn't buy as much of the subprime issues and the balance sheets heading in here we're in phenomenal shape before this mess. Its a complex issue, but essentially times have changed here in Canada for the banks. They are going to be reporting income differently going forward and you won't see the enormous growth here that you did in the past.
But there are a few institutions that don't have any exposure to this mess: TD for one, Manulife for another. (When I say no exposure I mean no direct exposure...they might have invested in someone who had invested in these securities). CIBC took some serious write-downs...they have been in this kind of trouble before in their history though and are a little more aggressive when it comes to these types of business issues.
I'm not touching the Harper comment. Suffice it to say though that I find it an interesting dichotomy when a lot of us take great joy in ridiculing McCain for saying the same thing in the US, but think that Harper is a totally different case.