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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Stachey on May 15, 2017, 08:40:06 PM

Title: Moody's downgraded the ratings of Canada's Big Banks
Post by: Stachey 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.

Title: Re: Moody's downgraded the ratings of Canada's Big Banks
Post by: Heckler on May 16, 2017, 08:13:20 AM

https://www.google.ca/amp/business.financialpost.com/news/fp-street/moodys-downgrades-credit-ratings-of-canadas-big-six-banks/amp

And thats why we diversify globally.

Title: Re: Moody's downgraded the ratings of Canada's Big Banks
Post by: RichMoose 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...

Title: Re: Moody's downgraded the ratings of Canada's Big Banks
Post by: Stachey 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.

Title: Re: Moody's downgraded the ratings of Canada's Big Banks
Post by: Kaspian 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 (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.)

Title: Re: Moody's downgraded the ratings of Canada's Big Banks
Post by: Stachey on May 16, 2017, 03:02:46 PM

Quote from: Kaspian 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 (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.  ;)