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Recession Is Over For Canadian Bankers...

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  • Recession Is Over For Canadian Bankers...

    ...almost like nothing happened, eh :p

    Apparently the universe is back to unfolding as it should.:rolleyes:
    Royal Bank profit jumps 24% to $1.56B

    Royal Bank of Canada said Thursday its earnings surged 24 percent in the third quarter as a big jump trading revenue more than offset higher loan-loss provisions.

    Canada's largest bank roared past analysts' estimates for the quarter, reporting net income of $1.56 billion, or $1.05 a share, in the third quarter that ended July 31. That was up from $1.26 billion, or 92 cents a share, a year earlier...

    ..."Royal destroyed consensus," said Dundee Securities analyst John Aiken. "It was a good quarter all around, with very few complaints."...

    National Bank reports record profit

    National Bank of Canada defied the trend to lower earnings among its competitors by reporting a record third-quarter profit of $286 million Thursday, up 18 percent from a year earlier...

    TD beats profit expectations, ramps up lending

    In a move that should please both shareholders and politicians, Toronto-Dominion Bank reported a strong $912-million profit at the same time it boosted loans to its clients.

    TD handily beat expectations with cash earnings of $1.47 per share, as analysts expected the bank to earn $1.23. The bank's profit rose 48 percent compared to the previous quarter, but was down 9 percent year over year...

    BMO gets lift as lending picture brightens

    Bank of Montreal kicked off the banks' earnings season yesterday with profit that was 6.9 per cent higher than a year ago, topping analysts' forecasts.

    BMO's stock jumped 6.71 per cent and shares of the rest of the Big Five banks each rose at least 3 per cent on hopes that the improvement will be sector-wide.

    For the first time in two years, Bank of Montreal reported no increase in a key measure of the number of Canadian borrowers who have been struggling to pay their credit card, mortgage or loan bills. And the few writedowns or charges that the bank took were so small as to be insignificant to its earnings...





    Last edited by GRG55; August 27, 2009, 08:04 AM.

  • #2
    Re: Recession Is Over For Canadian Bankers...

    Originally posted by GRG55 View Post
    ...almost like nothing happened, eh :p

    Apparently the universe is back to unfolding as it should.:rolleyes:

    Just as an anecdotal aside, I was at one of my local building suppliers yesterday [Wednesday] morning. There was hardly an empty spot in their large parking lot [and the mid-week morning timing suggests very few DIYers] My contact at the contractors desk kept getting interrupted by the telephone ringing constantly, and it took more than an hour to find yard staff to locate and load my material order.

    I have no idea what's going on because home prices here are definitely down and new home construction has declined from the frenzied levels of a couple of years ago.

    On the way out to my site, I passed a large assembly of CAT earthmoving equipment and a survey crew working on what appears suspiciously like a new residential subdivision site just outside the city limits. Recession? What recession? Or is this a case of hope [denial?] springing eternal...:confused:
    Last edited by GRG55; August 27, 2009, 08:25 AM.

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    • #3
      Re: Recession Is Over For Canadian Bankers...

      Originally posted by GRG55 View Post
      Recession? What recession? Or is this a case of hope [denial?] springing eternal...:confused:
      GRG55, I share your confused sentiment.

      In my neighborhood, townhouse-style condos (not free hold) which sold for $250K early this year and used to sell for $350K in 2008 are now back at $350K and selling!

      Could this be our "NASDAQ 4,000 bounce" before the floor gives way?

      I am still renting and recommending to anyone who wants to hear at the office (we have a lot of staff in the 22-30 range) to do the same.

      I know, I know, I should not give investment advice, but I simply suggest to my colleagues and staff who are planning to buy, to map out a 5-year refi (2015) from 3.89% to 9-10% and see what happens.

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      • #4
        Re: Recession Is Over For Canadian Bankers...

        I'm as confused as either of you.

        As you probably know, prices in several segments of Toronto real estate never went down at all.

        Sales volumes dripped, but prices kept rising, just slower than before.

        The Beaches, and I bet Richmond Hill. A chinese friend claims this is because of Chinese the superstion that if one lives in a place whose name sounds like "rich man" one will become rich.

        Don't know whether to believe that ... BUT I note that Richmond, BC and Richmond Hill, Ontario have become concentrated centres of Chinese immigrants.

        And despite massive numbers of condos opening and new condo developments being announced daily, I'm led to believe condo prices didn't fall much at all near the art gallery and the entertainment district. I haven't seen definitive numbers on this though. I'm told condo prices north of Eglinton, east of the Bloor bridge, west of Spadina have fallen.


        Originally posted by LargoWinch View Post
        GRG55, I share your confused sentiment.

        In my neighborhood, townhouse-style condos (not free hold) which sold for $250K early this year and used to sell for $350K in 2008 are now back at $350K and selling!

        Could this be our "NASDAQ 4,000 bounce" before the floor gives way?

        I am still renting and recommending to anyone who wants to hear at the office (we have a lot of staff in the 22-30 range) to do the same.

        I know, I know, I should not give investment advice, but I simply suggest to my colleagues and staff who are planning to buy, to map out a 5-year refi (2015) from 3.89% to 9-10% and see what happens.

        Comment


        • #5
          Re: Recession Is Over For Canadian Bankers...

          Maybe a recovery is happening. I would be interested to hear from VancouverGoinUp.

          Comment


          • #6
            Re: Recession Is Over For Canadian Bankers...

            Originally posted by cjppjc View Post
            Maybe a recovery is happening. I would be interested to hear from VancouverGoinUp.
            Here's a link to a Royal LePage Q2 2009 house price survey.

            Scan down the column and notice Vancouver in relation to the rest of the country. Now Vancouver is a fine place...I know because I grew up there, most of my siblings, nieces, nephews, etc still live there, and I still own a home there, so I get back frequently. Nice place. But not nice enough to justify the current ridiculous spread.

            And yes, there's all the usual justifications for the idiotic Vancouver real estate prices...the Chinese buyer factor, the fabulous setting, the limited land situation of a city hemmed in by sea, river and mountains, the outdoor recreational opportunities, the Gortex clad locals [that healthy outdoor look goes over big on the Wet Coast], the winter Olympics, and of course the finest climate in all of Canada [as long as one is willing to overlook the atrocious weather, the difference being too subtle for many umbrella-bearing Vancouverites to grasp ]

            Can anyone spell "bubble"?

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            • #7
              thought I'd like to see Steve Keen's take on

              the fact that Australia is doing quite well too,

              after we all thought Oz would fare worse than the US

              http://www.debtdeflation.com/blogs/
              http://newsfrom1930.blogspot.com/
              _________________________________
              A US blogger is giving us very good evidence of that with the blog News From 1930, in which every day he summarises the news from the same day of the year in 1930. As Alan Kohler also remarked recently, “one thing that comes through loud and clear is that they didn’t know they were having a Depression” (to which I would add the word “either”).

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              • #8
                Re: Recession Is Over For Canadian Bankers...

                Vancouver (and Canadian) real estate is going up alright... but you can bet this is a dead cat bounce. The second interest rates start to climb, look-out below!

                When the low-interest rates 'free-money' party ends, so will the real estate party, and my, what a bang that will be. The fundamentals are so out of whack right now it's not even funny. Note on the chart where it says below Vancouver "It takes 3 wage earners to buy an AVERAGE Vancouver SFD [Single Family Dwelling]". Speculation and insanity are rampant - the party will end.



                A few decent blogs on Canadian Real Estate (mostly west coast):
                http://www.greaterfool.ca/
                http://vancouvercondo.info/
                http://househuntvictoria.blogspot.com/
                http://www.canadianmortgagetrends.com/
                http://www.chpc.biz/ (source of graph above)
                Warning: Network Engineer talking economics!

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                • #9
                  Re: Recession Is Over For Canadian Bankers...

                  Awesome graph. Thanks Adeptus.

                  It seems the proper name for Gollum is "VancouverHasGoneWayUp".

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