"Canadian banks at risk" - Bank of Canada

[Canadian]

BoC published a report warning that the Canadian banks are at risk due to high and increasing levels of debt Canadian have, and mounting job losses amid the global recession. The balance sheet of the average Canadian has deteriorated significantly in the past year, which prompted the bank to issue the warning.

I guess we are not that different than US after all. The high level of debt will bring the overvalued Canadian housing market down to its knees, something I am looking forward to. This will make housing more affordable and give savers the advantage they deserve. By the way the Bank of Canada also says that it expects housing decline in Canada to continue this year .

[trent]

Just wait until some more mortgages and other loans go sour, and then the banks will have a REAL problem. Once this happens, the housing market is toast. The US housing market is still going down not because the homeowners have accepted the reality (a large number of them are still in denial), but because of the foreclosures. This is from the article below:

"
...and the deeply discounted foreclosure market accounts for more than half of home sales activity.
"

http://www.reuters.com/article/debor...54C0OR20090513

[bullish]

You keep waiting, while my house appreciates nicely

[Tightwod]

Sounds like Fear & Greed. When people are greedy you should be very afraid. When people are afraid.... you should be very greedy!

[Steven]

Originally Posted by Tightwod

Sounds like Fear & Greed. When people are greedy you should be very afraid. When people are afraid.... you should be very greedy!

The trick is to know which one of the two prevails at any moment. It looks like both extreme greed and fear are in play right now, hence the volatility we see in many markets.