O Canada (not the national anthem)

[Silver]

http://www.zerohedge.com/news/2017-05-0 ... ss-savings

Half Of Canadians Have $200 Or Less In Savings
by Tyler Durden
May 9, 2017 9:16 AM

Two months ago, when quoting the CEO of cell phone insurer Assurant, who appeared on Bloomberg TV to discuss business trends, one of his quotes caught our attention: “the reality is, half of Americans can’t afford to write a $500 check,” Colberg said. We decided to look into the CEO's claim about the woeful state of US finances. What we found is that according to a recent Bankrate survey of 1,000 adults, 57% of Americans don’t have enough cash to cover a mere $500 unexpected expense. Turns out the CEO was right. And while that may appear dire, it is a slight improvement from 2016, when 63% of U.S. residents said they wouldn’t be able to handle such an expense.

The Bankrate survey findings echoed research published last year by the Federal Reserve, which found that 46% of respondents said they would be challenged to come up with even less, or $400, to cover an emergency expense, and would likely borrow or sell something to afford it. When the Fed asked what types of emergency expenses Americans had actually faced in the last year, more than one out of five cited a major unexpected medical expense. The average expense: $2,782, or almost seven times higher than the Fed’s hypothetical $400 surprise bill.

How does this stunning statistic compare to some other developed nations?

It turns out that the state of half of US finances, deplorable as it may be is positively shining, not to mention "twice as good", when compared to the country's neighbor to the north, where a recent Ipsos survey on behalf of accounting firm MNP, found that more than half of Canadians are living within $200 per month of not being able to pay all their bills or meet their debt obligations. Needless to say, if $500 in savings is bad, half that amount is outright bizarre.

“With such a small amount of wiggle room, any kind of unanticipated hardship, such as a job loss or even a car repair, could send an already struggling family into financial despair,” Canada's Global News quoted Grant Bazian, president of MNP’s personal insolvency practice, which is one of the largest in Canada. He also revealed that for 10 per cent of Canadians, the margin of error when it comes to household finances is even thinner, at $100 or less.

It gets worse as those with anything at all left at the end of the month were in better shape than many: A whopping 31% of respondents said they already don’t make enough to meet all their financial obligations.

The poll also found that while debt is causing Canadians a fair bit of stress, few appear to be overly worried or on track to buff up their monthly financial cushion. Two-thirds of survey takers said they are “less than very confident” about their ability to create an emergency fund.

And then this hair-raising finding from the survey: "Roughly 60 per cent said they don’t have a firm grasp of how interest rates affect debt repayments." According to Bazian, the statistic helps explain why many indebted Canadians end up taking on more debt and high-cost loans. “That’s how so many end up in an endless cycle of debt,” he noted. It also explains charts such as this one, showing the harrowing difference surge in Canadian household debt, which has grown by 60% since the start of the century.

[Silver]

So while half of Canadians are broke, Canada (and the US) sell citizenship to investors who probably have more than a few hundred dollars lying around.

The Immigrant Investor Program (IIP) aims to have experienced business people contribute to Canada’s growth and long-term prosperity by investing in Canada’s economy. Investors must:

-show that they have business experience
-have a net worth of at least C$1,600,000 that was gained legally and
-invest C$800,000.

Citizenship and Immigration Canada (CIC) will divide your investment between participating provinces and territories. They will use it for projects to develop their economies and create jobs for five years.

Your investment is guaranteed. CIC will return it, without interest, about five years and three months after payment.

If we approve your application, you must make your investment before we issue a permanent resident visa. You must usually do this within 30 days. The visa office will send you a letter that explains what to do. Learn more about making your investment.

[Silver]

President Kimball recommended (for a different reason) learning Mandarin Chinese.

[Silver]

Your honor, I submit Exhibit 1. The .9999 pure silver Maple.

the solution.jpg (38.76 KiB) Viewed 1396 times

[Ezra]

Your honor, I submit Exhibit 1. The .9999 pure silver Maple.
the solution.jpg

Are you Canadian?

[Silver]

Your honor, I submit Exhibit 1. The .9999 pure silver Maple.
the solution.jpg

Are you Canadian?

No, but I love Canadian bacon. I'm Texan.

[gclayjr]

Silver,

Do you have a problem with

So while half of Canadians are broke, Canada (and the US) sell citizenship to investors who probably have more than a few hundred dollars lying around.

???

Besides I think it is a "green card" not citizenship that is sold... at least here in the U.S.


Regards,

George Clay

[Silver]

Silver,

Do you have a problem with

So while half of Canadians are broke, Canada (and the US) sell citizenship to investors who probably have more than a few hundred dollars lying around.

???

Besides I think it is a "green card" not citizenship that is sold... at least here in the U.S.


Regards,

George Clay

Hi George,
No problem with a sovereign country (in this case, the US or Canada) inviting legitimate investors to enter and then rewarding them with a green card or citizenship. There are the obvious caveats, but if done properly the process could bring the best and brightest from around the world. Usually, we're talking about people who were able to excel in a business environment different from our own. Perhaps they can bring some great insight on how to expand our markets there.

In the case of Canada, however, I do know of cases of, for example, hot Chinese money getting laundered via the Vancouver, British Columbia, real estate markets. ( http://www.zerohedge.com/news/2016-03-2 ... omes-sold- ) And that's happening while the Canadians who have long roots in their country are suffering from the effects of socialism. Since money = power, I think the average Joe will feel less and less empowered. How will he react to that? Will he accept the chains that bind him to debt serfdom or will he try to make a change?

[Sunain]

Canada is a bubble ready to burst at anytime. The housing market and debt loads are at all time highs but incomes and raises aren't matching that. I don't know when but here in Vancouver, it's reaching dire levels. That stat of 50% of Canadians have $200 or less in savings seems about right. There was also a stat that came out this week that said 40% of Canadians can't pay their bills and are putting them on credit cards.

I've honestly started trying to figure out what I have to do to move to Utah.

[gclayjr]

Silver,

It turns out that the state of half of US finances, deplorable as it may be is positively shining, not to mention "twice as good", when compared to the country's neighbor to the north, where a recent Ipsos survey on behalf of accounting firm MNP, found that more than half of Canadians are living within $200 per month of not being able to pay all their bills or meet their debt obligations. Needless to say, if $500 in savings is bad, half that amount is outright bizarre.

As bad as American finances are, I wonder how they compare to other countries. I think that this credit, and budgeting problem is pretty worldwide. Of course when the bubble breaks, soap will be everywhere!

Regards,

George Clay

[Sunain]

Moody's downgrades credit ratings for Canada's Big 6 banks

Ratings agency cites debt level, high house prices as reason for concern

By Pete Evans, CBC News Posted: May 11, 2017 8:30 AM ET Last Updated: May 11, 2017 10:04 PM ET

Moody's says high debt levels and soaring house prices could be bad news for Canada's big banks, and has downgraded their credit rating as a result.

Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada and Royal Bank of Canada all saw their credit ratings cut by one notch late Wednesday.

Moody's cited a "more challenging operating environment for banks in Canada for the remainder of 2017 and beyond."

"Today's downgrade of the Canadian banks reflects our ongoing concerns that expanding levels of private-sector debt could weaken asset quality in the future," Moody's vice-president David Beattie said.
High consumer debt a concern

"Continued growth in Canadian consumer debt and elevated housing prices leaves consumers, and Canadian banks, more vulnerable to downside risks facing the Canadian economy than in the past."

Moody's noted Canada's record-high debt-to-income ratio of 167 per cent as cause for concern, and said debt levels are now beyond the usual risk models in place to determine whether businesses could withstand a crisis.

The ratings agency cited the same concerns in 2013, the last time it warned about the creditworthiness of the big banks.

Economist Derek Holt, who works at Scotiabank, said that downgrade didn't end up having much of an impact on the banks' business then, and he doubts it will this time.
'Plays to market sentiment'

"More than four years later the sky has not fallen on housing, the consumer or banks," Holt said. "I'm not sure how much new information is contained within this latest salvo but it certainly plays to market sentiment."

That's a reference to fears about Canada's housing market, which have come to the fore in recent weeks. Alternative lender Home Capital, which has seen its shares plummet amid an OSC investigation, is at the centre of the storm of concern over house prices, and the level of debt associated with them.

"The market instinct is to treat it as contagion risk, but that risk is highly overblown in my opinion," Holt said.

Nonetheless, Moody's move is the ratings agency's way of saying they are becoming a bit more concerned about the banks' exposure to the housing market, but they're still confident in their businesses overall.

Finance professor Alan White of the Rotman School of Management in Toronto said in an interview that Moody's move is likely just tied to current fears over house prices.

If any American's think that this Canadian Debt and mortgage crisis won't affect the United States significantly, read closely. Some of the biggest banks in the world are Canadian. TD is a very big bank especially in the Northeast USA like Boston. The big Canadian banks were okay after the collapse of 2008 but this time it is Canada directly that will be affected and that will take down both Canada and the USA. TD/Waterhouse is huge on the TSX and NYSE. The other 5 Canadian banks aren't slouches either. $100 billion wouldn't last long even in Canada.

According to a ranking produced by Bloomberg, in 2011, the Big Five are among the world's 20 strongest $100-billion-asset banks,
https://en.wikipedia.org/wiki/Big_Five_(banks)

If the banks are significantly affected, it won't be just Canada that suffers. Maybe we should ask Apple for a loan or bailout! New from Apple the Apple iMortgage!

Apple's enormous cash pile swelled to $256.8 billion in the fiscal second quarter, up more than $10 billion from the previous quarter.
http://www.cnbc.com/2017/05/02/apples-c ... llion.html

[Robin Hood]

I've honestly started trying to figure out what I have to do to move to Utah.

I've spent some time in both places.
I'd choose Canada any day.

[Sunain]

I've honestly started trying to figure out what I have to do to move to Utah.

I've spent some time in both places.
I'd choose Canada any day.

Yeah, I've lived in both as well. Unfortunately, Canada is just becoming way too unaffordable to live in with less opportunities for families. The lack of members of the church, especially younger single members is a big concern also.

[gclayjr]

Sunian, Robin Hood,

Neither Canada nor Utah are monolithic. I would rather live along the Sevier River, Moab, Bear Lake or some part of Cache Valley that is outside of Logan, than Live in Montreal, Toronto, Ottawa or Quebec. I would rather live in Saskatchewan Canada than anywhere between Ogden and Spanish Fork in Utah.


Regards,

George Clay