Hmm…

31 Replies to “Hmm…”

1. Banks are by empirical definition money making enterprises. They are the money.
   The only drawback in this country is, that there is less and less competition in banking.
   It is by design entirely supported by heavy cash of the “banking industry”, supplied to the politicians.
   Why is it that only the word corruption comes to mind.

   1. The entire system is set up so that politicians and their friends can benefit.

      Corruption is an apt word.

2. I thought Trudeau was going to tax entities that made great amounts of money during the pandemic. Another Liberal bunch of bull shut.

3. So all the new profits are from reduced loan loss provisions? That could turn around in a hurry. Loan losses are supposed to be calculated based on history of collections but I wonder if some of this is wishful thinking?

   1. Citizens are the banks loss donkeys.
      Nice buisness. They keep when they win, and schmuck peon tax sheeple swallow any and all losses.

4. You pretty much can’t go wrong buying Canadian bank stocks.

   They have a monopoly and aren’t allowed to fail.

   1. Two exceptions. Northland Bank (Calgary) and Canadian Commercial Bank (Edmonton). They invested mega billions in Alberta and the oilpatch just as Trudeau Senior killed the oil industry by putting a $40 tax on $50 oil. It was kind of uppity for Alberta to want to have it’s own banks so they crashed and burned in the biggest bank failures in Canadian history.

      1. Now Alberta does have its own bank, bit it has only survived because it’s government-controlled. ATB Financial is probably the biggest remnant of the Social Credit plan to take control of Alberta’s money supply.

         If Wuhan flu taught us nothing else, it’s that as such, printing funny money and giving it away wasn’t what made Bay Street nervous about social credit.

      2. treasury branches were an early alberta answer to the feds failure during the depression . they needed somewhere to cash the funny money .

         1. It was also the only available lender when the eastern banks were demanding impossible conditions for lending even the smallest amounts. Though there were stories back in the days of ATB managers being told who to lend to depending on elections, but they were no doubt exaggerated.
            Way back in day, when worked in the NWT, a pair of colleagues went out on holiday and found themselves short of cash. As I remember, it was a local ATB (then openly Alberta Treasury Branch) manager who helped them out.

5. The objective of printing all that funny money and giving it away to Canadians unable to work due to Wuhan flu hysteria was to prop up Bay Street. It was a bailout by stealth, of a banking sector that could not have survived a lockdown that made most of their debt-slaves unable to make payments.

   As long as the Big Six remained solvent, you and I could have starved for all they cared.

   Oh, and by the way—no prizes for guessing whose top brass was first in line for a new home in cottage country.

6. So … all those landlords who were both forbidden from demanding rent or evicting non-paying tenants? During this global RESET? Whose books did THOSE losses get written off? Ahhhh yes … the taxpayers covered it all up. Future taxpayers.

   Poor folk don’t need to pay rent … and they can shoplift all the products they need. Reparations for a “cruel” capitalist system, eh? Yeayyyy … RESET!

7. So how many bank haters out there would rather keep a significant chunk of their portfolios in Bonds and Treasuries paying out nothing after inflation instead of Bank stock which is likely as secure but paying out dividends with (so far) positive yield and a good chance at capital gains?

   1. To participate in the fleecing, in other words.

8. Here’s an example of how they are making (keeping) their money. In February 2020 (ante-COVID), my late mother’s EPremium savings account earned some nice interest. In March 2020 (COVID), the interest earned was half of February’s. In April, the interest earned was one-tenth of February’s. EPremium my @$$.

9. I don’t understand the semi-socialist hostility to Canadian banks. Why not just enjoy it by buying some of their shares?

   Also the annoying innumeracy of the hatred based on “Huge” profits. The Royal Bank, the biggest one, pays all of 3.44% in dividends. It’s return on Assets is 0.87% and return on Equity is 16.09%. Wow, those numbers are yuuuuuuge, money for nothing and your chicks for free. Not really.

   Even worse is that the biggest holders of Bank stocks are probably Canadian pension funds. Why do you hate your grannies?

   1. Better for us to own the banks rather than have the banks own us.

      1. You do own the banks. Or at least you would if you weren’t to cheap to buy bank stock.

         1. I think he’s labouring under the delusion that if the ‘wicked’ banks are ‘Nationalised’, their assets will belong to everyone. Which is about as far from reality as we are from the other end of the Universe.

   2. Because fractional reserve banking is the greatest financial fraud ever perpetrated on mankind, with the possible exception of limited liability.

      By the way, with regard to grannies—it was a blunder of existential proportions to make it possible to invest in bank stock for retirement rather than raise children that will take care of you in your old age. The problem with that plan is that eventually you run out of other people’s children. Grannies? Old maids, I think you mean.

10. Better increase interest rates, I guess, right? Ownership of bank stocks is like collecting welfare, but less honest.

11. SiIIy me….I was assuming banks made money by charging me twice for services I had no idea I was actuaIIy utiIizing, and then having mortgage rates change in the opposite direction that Prime wouId indicate is the proper course of action.

    I once asked for a breakdown of why I was paying so much for “service fees” and aII I got was “Covid means more peopIe are using their debit cards”…which was strange, because I was being charged more….and I never increased my usage that much.

    I wouId Iike to meet the bank empIoyee who is putting in aII these extra hours to make their “service” better for customers. And aII this time, I thought it was automated. SiIIy me.

    For a whiIe there……I thought the banks were just gouging us. I had no idea it was actuaIIy good management on the part of the bankers.

12. For what it is worth,

    early this morning, way before I saw this post, I completed a short survey

    in which I told my bank that their fees are high but the interest they pay me in my savings account are microscopic.

    oh I know they don t care, I know the opinion of their customers don t matter, but like I said ; for what it is worth…

    1. the interest they are paying you is low because the interest they collect on loans is very low.
       the spread between the two rates is what we used to operate on. it’s now miniscule, so they are forced to charge service fees.
       if you’re part of a pension plan, you have shares in at least of of the banks. if you’re not, your RRSP should have some bank shares.
       your service fees are high – more than ~ $5 a month? maybe you ought to shop around for a different account type at another bank.

       1. Yeah, for every one hundred dollars the bank has on deposit it can lend out what 1600 ?

          So if they lend out only 1000 and get 6% return, that’s $60.

          They could at least pay out 6% interest to the guy who put in the $100, which is $6.

          But nope the banks will pay maybe 1%.
          Yes they are paying $1 to “earn” $60.

          And the numbers I used are very conservative.
          Being a bank is literally a license to print money, (assuming digital creation is the same as printing)

          Yes they do have overhead and losses, but I didn’t factor in most loans have a higher rate than 6%

          They could (and in my mind should) mitigate losses by not making loans to people who shouldn’t get them.

    2. For Christ’s sake, what is the matter with you? Where else will you put your money? Nobody wants it.

       Who else will send money across the country for 1.50?

       You want high income at zero risk and zero cost. Never going to happen and people who ask for it are crazy and immoral.

       Bunch of fuckin whiners here today.

       1. I’d say the people who pay themselves 60x what they pay the person who risks the capital are immoral.

          The system is set up to reward a few connected and punish the responsible.

          If the price of money lending and borrowing was set by the market and not a corrupt system that I could get behind that.

13. Not true RB.
    Banks (the big 5) don’t lend out depositors money because those funds are a liability of the banks.
    They lend money out of thin air by creating an entry on a ledger.
    One has nothing to do with the other.
    That is “ funny money”

14. Nice to see somebody doing well other than the Trudeau’s and their friends.

15. A good read. “ Towers of Gold, Feet of Clay”
    You may not agree with his take but he has compiled a lot of interesting information.
    For example the Mulroney government baled out Massey Ferguson.
    He sat on their board.
    Earnest Manning sat on the board of the Bank of Montreal!!

16. neither a borrower nor lender be

    With banks the borrower pays 20+% on credit cards
    With banks lender gets 0% on deposits

    Say no to both.