so if the banks blow up, the taxpayer pays via cmhc which is government sponsored. of course the banks would need to be bailed out but the equity and bondholders get wiped out. now the question is how many Canadians are there that would stand for even higher rate than the marginal 50%+ to bailout their country? i know they are promoting immigration but how many will need to pay substantial taxes? will anyone accept a 75% tax rate for a while? or a higher cap gains tax? would capital flee the country?
As a non canadian, when I see your insane bubbly real estate market, I would not touch a bank. They can blow up. Maybe they are better capitalised ok, but they can still lose a big chunk of book value.
I have seen it First Hand in Ireland, Spain. It's nasty
BNS has lagged their peers in their investments in technology. Although some speak of its international exposure, it's merely investments in other foreign banks via shareholdings. In an environment of rising rates and a strong USD this is not the best place to be. The future will determine more with their new CEO.
Hey Nelson, wondering if you’d change your perspective with the recent banking troubles in the US?
so if the banks blow up, the taxpayer pays via cmhc which is government sponsored. of course the banks would need to be bailed out but the equity and bondholders get wiped out. now the question is how many Canadians are there that would stand for even higher rate than the marginal 50%+ to bailout their country? i know they are promoting immigration but how many will need to pay substantial taxes? will anyone accept a 75% tax rate for a while? or a higher cap gains tax? would capital flee the country?
As a non canadian, when I see your insane bubbly real estate market, I would not touch a bank. They can blow up. Maybe they are better capitalised ok, but they can still lose a big chunk of book value.
I have seen it First Hand in Ireland, Spain. It's nasty
BNS has lagged their peers in their investments in technology. Although some speak of its international exposure, it's merely investments in other foreign banks via shareholdings. In an environment of rising rates and a strong USD this is not the best place to be. The future will determine more with their new CEO.