Detailed market commentary at The Market Ticker and Ticker Classics
(The Year 2012 In Review)
Donations accepted; we offer GOLD ACCESS for enhanced privileges. T-Shirts, caps, coffee mugs? Click here.
BlogTalkRadio - Mondays at 3:30 Central - Yes, TickerGuy has a radio show (kinda)
RSS available You are not signed on; if you are a visitor please register for a free account!
|MarketTicker Forums Single Post Display (Show in context)||
User: Not logged on
|User Info||Tickerguy Is (Again) Right -- Canada; entered at 2012-02-24 20:11:46|
40% of the residential RE loans in Canada are essentially callable on an overnight basis, so if there is a liquidity problem, the bank can immediately liquidate the collateral and defend the rest of their portfolios.
Hm... what happens to 'liquidity' if Canadian banks actually did this to a significant number of borrowers? Methinks the borrowers wouldn't be able to come up with the money (I think that's a safe bet), and the banks would end up holding a bunch of rapidly-diminishing assets (foreclosed homes in a deflating market.)
How exactly would that mitigate Canadian banks' liquidity problems?
Last modified: 2012-02-24 20:15:39 by bsfootprint