Author Topic: Moody's downgraded the ratings of Canada's Big Banks  (Read 1352 times)

Stachey

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Moody's downgraded the ratings of Canada's Big Banks
« on: May 15, 2017, 08:40:06 PM »
Has anyone else heard if this is the case?

I just saw a small article in the newspaper that said Moody's downgraded the Big Banks because they have too much exposure to credit card debt and auto loans.


RichMoose

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Re: Moody's downgraded the ratings of Canada's Big Banks
« Reply #2 on: May 16, 2017, 08:52:50 AM »
Not surprising given Canadians are some of the most highly leveraged households in the entire world. Household debt is bigger than our entire economy.

I personally don't see how this can end well; it certainly didn't for the U.S., Ireland, Japan...

Stachey

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Re: Moody's downgraded the ratings of Canada's Big Banks
« Reply #3 on: May 16, 2017, 10:06:10 AM »
I seem to remember a statistic from the US just before the housing bubble burst.  It said that 75% of their economy was based on consumer spending.  (Is that even possible?  I might have a wrong number there.)

I wonder what Canada's percentage is and how much of it is created by the housing bubbles we have all over the place.

Kaspian

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Re: Moody's downgraded the ratings of Canada's Big Banks
« Reply #4 on: May 16, 2017, 12:54:40 PM »
http://business.financialpost.com/news/economy/canadas-household-debt-is-now-bigger-than-its-gdp-for-the-first-time

:(

Bank spokespeople in the article make it very clear though: it's not overspending that's the issue, it's that people don't make enough.  (Hahahahaha....  HAAHAHAHAHAHAHA!!  BwaHAHAHAHA...  Oh, they tell good lies.  Please borrow more and ask your employer for a raise.)

Stachey

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Re: Moody's downgraded the ratings of Canada's Big Banks
« Reply #5 on: May 16, 2017, 03:02:46 PM »
http://business.financialpost.com/news/economy/canadas-household-debt-is-now-bigger-than-its-gdp-for-the-first-time

:(

Bank spokespeople in the article make it very clear though: it's not overspending that's the issue, it's that people don't make enough.  (Hahahahaha....  HAAHAHAHAHAHAHA!!  BwaHAHAHAHA...  Oh, they tell good lies.  Please borrow more and ask your employer for a raise.)


LOL! 
Yeah those bank people can spin any story to suit their purposes.
They're almost as good at it as politicians.  ;)