America has its 1ST bank run!

[kingcopper]

Re: America has its 1ST bank run!

love the part about opening anew on Monday as Indymac FEDERAL! hahaha...Gosbank here we come

[GRG55]

Re: America has its 1ST bank run!

sorry, man. most offensive to women itulip post ever.

Agree. If not #1, in the top 3 for sure...

[GRG55]

Re: America has its 1ST bank run!

Hey fellow iTulipians. Kinda new here.

I have a question: Anyone has any idea (or cares about the status of Canadian Banks?

- Largo

Wide variation. Run a search on CIBC on this site and you'll find a few choice posts as they self-immolated themselves yet again [CIBC is famous for doing that over the decades].

Earlier this week this come out on Royal Bank of Canada (now called RBC):

Analyst sees more charges at Royal Bank of Canada

Wed Jul 9, 2008 3:49pm EDT
TORONTO, July 9 (Reuters) - Royal Bank of Canada could take capital markets charges of up to C$1.5 billion ($1.49 billion) in its third quarter for various credit-market exposures, an analyst said on Wednesday.

Genuity Capital Markets analyst Mario Mendonca said the pretax charge at Canada's largest bank could range from C$900 million to C$1.5 billion, driven by the downgrade of U.S.-based bond insurer MBIA and the subsequent spread widening of MBIA's credit default swaps.

On June 19, Moody's Investors Service stripped MBIA of its last top "AAA" rating.

Another source of higher charges at RBC, Mendonca wrote, is the recent increase in certain mortgage-backed securities spreads due to concerns at U.S. home finance companies Freddie Mac and Fannie Mae.

In the second quarter, which ended April 30, Royal took C$854 million in capital markets and corporate support charges before tax. The writedowns covered a variety of debt securities and hedge positions.

RBC is due to report results for the May-June quarter in late August.

On the Toronto Stock Exchange late on Wednesday, shares of RBC were down 3 percent at C$44.62, while the S&P/TSX financials index was off 2.1 percent. More...

Ed Clark over at TD seems to be the only one that completely sidestepped the ABCP debacle, and Scotia is getting kudos for its international operations, but methinks its too early to get back into the financials, even in Canada.

[Jay]

Re: America has its 1ST bank run!

Ed Clark over at TD seems to be the only one that completely sidestepped the ABCP debacle, and Scotia is getting kudos for its international operations, but methinks its too early to get back into the financials, even in Canada.

I think Capital One needs to tank first before even thinking of wading back in.

[c1ue]

Re: America has its 1ST bank run!

Looks like my major depository bank failure prediction is going to come true.

Not Indy, but Wachovia...

[ax]

Re: America has its 1ST bank run!

I think Capital One needs to tank first before even thinking of wading back in.

We'll find out on Thursday. Let's see what they claim delinquency rates are...

[raja]

Re: America has its 1ST bank run!

Looks like my major depository bank failure prediction is going to come true.

Not Indy, but Wachovia...

Could you share what you know about Wachovia?

Thanks

[c1ue]

Re: America has its 1ST bank run!

I am not a shareholder - long or short - of Wachovia.

Nor am I nor anyone I know work in or for Wachovia in any way.

But looking at Wachovia's capitalization situation, it seems quite clear.

[LargoWinch]

Re: America has its 1ST bank run!

Yup totally agree with you GRG55: CIBC is the riskiest of the bunch.

I am simply amazed that people are still lining up for 780 sq ft condos in Toronto (where I live) priced at $400K+... Don't they watch US news?

Why would I buy a tiny condo for $400K to $600K in Toronto while I can get something nice say in FL for $200K?

Remember...our dollar is at par (but that is another story).

_ L.

[GRG55]

Re: America has its 1ST bank run!

Yup totally agree with you GRG55: CIBC is the riskiest of the bunch.

I am simply amazed that people are still lining up for 780 sq ft condos in Toronto (where I live) priced at $400K+... Don't they watch US news?

Why would I buy a tiny condo for $400K to $600K in Toronto while I can get something nice say in FL for $200K?

Remember...our dollar is at par (but that is another story).

_ L.

They don't call them condominimums for nothing.

I suspect they are too busy watching Property Virgins on HGTV. Doesn't your town have a now celebrity condo-broker named Brad Lamb? Or does he sell only to the rich and famous?

Seriously, it's going to take a while to change Canadian's love affair with real estate. Even in Vancouver...

[LargoWinch]

Re: America has its 1ST bank run!

Brad Lamb! How do you know about THAT one?

GRG55 you are well-connected indeed

It is funny to think that Canadians feel as if they are "insulated" from the US RE problems...time will tell, but I would not bet on houses going up at 10%+ yr while in the US its going somethin like -10%/-15% per annum...

BTW: A Brand new 4Brd/2bath townhouse goes for $1,500/month in High Park (moving Aug. 1). So why would I be the "greater fool". Me don't think so.

Instead, I bought a "Sentry" commercial safe and placed my Gold, Plat. and Silver in it - Silver is heavy so its great against theft

[Spartacus]

Re: America has its 1ST bank run!

never had much of a taste for expensive housing. As long as I don't freeze, I'm good.

I'll sit out the bubble in my $500 a month Regent Park sublet (shared bath & kitchen, drug dealers & hookers outside the front door) ...

Brad Lamb! How do you know about THAT one?

GRG55 you are well-connected indeed

It is funny to think that Canadians feel as if they are "insulated" from the US RE problems...time will tell, but I would not bet on houses going up at 10%+ yr while in the US its going somethin like -10%/-15% per annum...

yeah, I can find very few detractors. Price increases have mellowed from what they were, but no one is thinking decrease.

My brother did not buy for years because he thought another bust was coming a la 1991. When Toronto lost the best bid they've ever put up for the Olympics he was saying "In 3 months the price will drop 20% and then I'll buy" (he thought the Olympic bid had been raising prices irrationally for 2 years). That drop never materialized ... prices just kept getting higher.

He did buy (around $0.8M in Rosedale, 2003 - I told him Gold & Silver, and he ignored me, of course) and he's now saying the US bust will have zero effect in Canada.

[GRG55]

Re: America has its 1ST bank run!

never had much of a taste for expensive housing. As long as I don't freeze, I'm good.

I'll sit out the bubble in my $500 a month Regent Park sublet (shared bath & kitchen, drug dealers & hookers outside the front door) ...



yeah, I can find very few detractors. Price increases have mellowed from what they were, but no one is thinking decrease.

My brother did not buy for years because he thought another bust was coming a la 1991. When Toronto lost the best bid they've ever put up for the Olympics he was saying "In 3 months the price will drop 20% and then I'll buy" (he thought the Olympic bid had been raising prices irrationally for 2 years). That drop never materialized ... prices just kept getting higher.

He did buy (around $0.8M in Rosedale, 2003 - I told him Gold & Silver, and he ignored me, of course) and he's now saying the US bust will have zero effect in Canada.

If he owns a home in Rosedale, he has to say those sorts of things...:rolleyes:

If he repeats himself often enough, he may even start believing it.

[LargoWinch]

Re: America has its 1ST bank run!

It is so funny to see people running to get their fiat $.

A good example here:
http://www.youtube.com/watch?v=aszTXWXNqTg

The thing is, they can guarantee you the $100,000, but NOT its purchasing power. That seems very hard for people to understand...

My guess is 9.95 US bonars per gal. after Freddie and Fannie are gone...

[LargoWinch]

Re: America has its 1ST bank run!

If we had a decent education systems, people would at least try to use tools like these before buying, but no! cause "owning" a house is cool:

http://www.nytimes.com/2007/04/10/bu...=1&oref=slogin#

https://www.vancity.com/MyMoney/Tool...ors/RentvsBuy/


It does not matter if you put only 5% down, you "own" the thing apparently. To that I say: stop making your payments and let see what happens.

You know the craziest thing: my entire familly and friends think that 100 ounces of physical gold is far far more riskier than a 20% deposit on a $500K condo in downtown Toronto! Talk about "past returns bias"!

I tried to explain them the concept of leverage but to no avail...