     |
|
|
|
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
|
| Top | Login | Control Panel | FAQ | Register | Logout |
| User Info | Tickerguy Is (Again) Right -- Canada; entered at 2012-02-24 20:11:46 | |||
|
Bsfootprint Posts: 960 Registered: 2011-02-27 
|
Pitz wrote..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
| |||