The Banks Are Going Down the Tubes YO Discussion

[PeteMoss]

^^^ when you are searching for job postings for government orgs you have fallen deep in the tinfoil hat club

[Azure]

Originally Posted by nik-

It might, it might not, but we really do have a people vs supply problem right now. It might hold it pretty steady.

Well it won't if we keep having a seriously high level of immigration.

Then add in a supply problem.
Labour shortage.
Material shortage.

Lots of things keeping real estate prices propped up.

[Monahammer]

Lol now our resident joker is trying to start a bank run using CP? Cancerous.

[Yoho]

Originally Posted by Monahammer

Lol now our resident joker is trying to start a bank run using CP? Cancerous.

Sorry for mentioning things seen on a government website.

I’ll do my due diligence you bury your head in the sand. Tumor.

[Slava]

Originally Posted by Monahammer

Lol now our resident joker is trying to start a bank run using CP? Cancerous.

What was said that is inciting a bank run?

It's interesting, becuase I've had clients ask about the stability and strength of the Canadian banks this week. It's pretty natural for people to be interested in this after the failures in the US.

[PsYcNeT]

Originally Posted by Slava

What was said that is inciting a bank run?

It's interesting, becuase I've had clients ask about the stability and strength of the Canadian banks this week. It's pretty natural for people to be interested in this after the failures in the US.

Naw it's just the Little Brother syndrome of all the Murica-Lite social media groups.

US RWNM is hammering this whole thing as a failure of government (mostly via Warren interference) and getting lots of clicks and engagement eyeballs, so the Canadian groups are trying to drum up concern over our banking system as well while all the rubes pull out their money and bury it in a box in their backyard.

This in turn leads to internet sleuths trying to prove their conclusion by painting a picture to justify their posts.

[Monahammer]

Originally Posted by Yoho

Sorry for mentioning things seen on a government website.

I’ll do my due diligence you bury your head in the sand. Tumor.

Only within your brain mon frere.

Originally Posted by Slava

What was said that is inciting a bank run?

It's interesting, becuase I've had clients ask about the stability and strength of the Canadian banks this week. It's pretty natural for people to be interested in this after the failures in the US.

Digging up postings on government websites and inferring the government deposit agency is readying for crises? How is that not encouraging a mentality to lead to a bank run?

If he worked for a bank (or at all, lol) then he could get fired for behavior like this.

[Fuzz]

Originally Posted by Monahammer

Only within your brain mon frere.



Digging up postings on government websites and inferring the government deposit agency is readying for crises? How is that not encouraging a mentality to lead to a bank run?

If he worked for a bank (or at all, lol) then he could get fired for behavior like this.

Lets be real here, Yoho didn't actually do the work digging it up, it was posted on some fringe Facebook group he follows.

[Yoho]

https://twitter.com/user/status/1636397840292249600

[bizaro86]

Originally Posted by Yoho

https://twitter.com/user/status/1636397840292249600

Canadian banks have 2 big risks: the Canadian real estate market is declining, so they could start losing money on mortgages that aren't repaid. They also have a problem with the yield curve, which is very inverted. Since banks generally borrow short term money (ie deposits) and lend for longer term (mortgages and loans) having short rates higher than long rates hurts their profitability.

Now, to be clear I think exactly zero of the big banks in Canada is at any risk of failure. I'm talking about whether their shares will be a good investment. If the yield curve normalizes and/or the real estate market stabilizes I think an investment in Canadian banks would likely work out well. If the curve stays inverted and we have a big real estate crash owning banks on the way into that isn't likely to be good. That uncertainty is why they trade at such a low multiple of trailing earnings. I haven't bought any banks yet but am considering it.

[Mr.Coffee]

Just keep less than $100k in any given bank account.

Might be tough for some CPers but easy enough for me haha

[bizaro86]

Originally Posted by Mr.Coffee

Just keep less than $100k in any given bank account.

Might be tough for some CPers but easy enough for me haha

For those concerned, its actually 100k per person per account type. For example, a couple could have:

100k his name
100k her name
100k joint
100k his tfsa
100k her tfsa
100k his rrsp
100k her rrsp

And all would be covered. Over that you can start again with additional banks and get 100k per account type at each institution.

[Lanny_McDonald]

Isn’t that just common sense???

[bizaro86]

Originally Posted by Lanny_McDonald

Isn’t that just common sense???

Treasurer of Roku didn't think so.

I'd have to roll t-bills every 60-90 days!?!?! Good heavens, that might take me half an hour!

[flames_fan_down_under]

Originally Posted by bizaro86

For those concerned, its actually 100k per person per account type. For example, a couple could have:

100k his name
100k her name
100k joint
100k his tfsa
100k her tfsa
100k his rrsp
100k her rrsp

And all would be covered. Over that you can start again with additional banks and get 100k per account type at each institution.

Question for anyone better educated on CDIC...does it matter what you're holding in your TFSA for it to be CDIC insured? Like ETFs vs Mutual funds vs plain old stocks.

[GGG]

Originally Posted by flames_fan_down_under

Question for anyone better educated on CDIC...does it matter what you're holding in your TFSA for it to be CDIC insured? Like ETFs vs Mutual funds vs plain old stocks.

Underlying securities are insured through CIPF up to 1 million.

[Shazam]

So I'd have to split my RRSP quite a few ways to do this. Can I do it in kind?

[FlameOn]

Originally Posted by Shazam

So I'd have to split my RRSP quite a few ways to do this. Can I do it in kind?

I wonder if dedicated group benefits/retirement savings firms like Sunlife/Manulife would be a little less susceptible to the current bank deposit withdraw run/bond liquidity problems we are seeing with banks. On the surface it seems like there's less to worry about there.

[opendoor]

Originally Posted by GGG

Underlying securities are insured through CIPF up to 1 million.

On top of that, there are very few legitimate reason that someone's securities would be lost if a brokerage became insolvent, as they're normally kept segregated from the organization's own money. Whereas with a bank, they can be doing everything above board but still not be able to cover deposits if the worst case scenario happens.

There are exceptions (like with brokers lending out shares for short sellers) where it could theoretically be an issue, but by and large someone's securities would be fine if a brokerage fails. So the $1M coverage would be adequate for accounts that are many times that size.

[Shazam]

Originally Posted by FlameOn

I wonder if dedicated group benefits/retirement savings firms like Sunlife/Manulife would be a little less susceptible to the current bank deposit withdraw run/bond liquidity problems we are seeing with banks. On the surface it seems like there's less to worry about there.

Their investments are crap and their fees a ripoff.