Canada's banks: Next dominos to fall?

[biaggio]

http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/canadas-banks-next-dominos-to-fall/article2134871/

 

I was looking to add some canadian banks.

 

Near monopolies up here in Canada. They always find something to blow themselves up with.

 

Disclosure: own some BMO.

[ubuy2wron]

http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/canadas-banks-next-dominos-to-fall/article2134871/

 

I was looking to add some canadian banks.

 

Near monopolies up here in Canada. They always find something to blow themselves up with.

 

Disclosure: own some BMO.

The author referenced Tyler Durden the anon. authors of much of the contenet on zero hedge. While I appreciate their irreverence why do I get the sense that these guys are just  a bunch of traders using social media to goose their day trading activities.

[Parsad]

Yup, they're levered and have been for some time.  But they stick to most of the basic banking functions and stay away from esoteric products.  Mortgage loans here are also of pretty high quality.  But they will get hit at some point as some loans eventually do go bad, business loans slow or interest rates hike up.  They got hit badly in the 80's. 

 

For the most part, they are fairly well run...except CIBC, and Royal had significant US exposure during the last couple of years...but they would be able to sell assets or raise capital and easily support themselves.  Cheers!