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Personal Finance

How Solid are Canada’s Big Banks?

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Posted by Peter Diekmeyer - Sprott Money

on Thursday, 23 March 2017 08:47

banksThe World Economic Forum consistently ranks Canada’s banks among the world’s safest. Competent regulators have overseen stress tests, tightened lending standards and delinquency rates are low. Demographics are good and the country’s diversified economy is backed by a treasure of oil, wood, gold and other natural resources. 

So the experts say.

Institutional investors, relying on the work of Jeremy Rudin, Canada’s chief bank regulator, agree. In fact, Canadian financials accounted for 35.5% of the market capitalization of the benchmark exchange (NBF February). 

However this façade hides major uncertainties. Key concerns stand out, which if unaddressed, could spark solvency and liquidity issues in one or more of Canada’s Big Six banks. 

The fragilities can be seen in an IMF report, which calculated that Canada’s financial sector accounted for a stunning 500% of GDP in 2012. Today, the assets of the Big Six banks alone are more than double the size of the country’s economy. 

Each (RBC, CIBC, Scotiabank, BMO, TD and National Bank) have been designated “systemically important,” which in turn, due to sheer size and interconnectedness, suggests that they are almost certainly “too big to fail.” That means the collapse of any one Big Bank would threaten to trigger systemic implosion. 

More ominously, if Canada’s financial system, arguably the world’s best, is riddled with pores, what does that say about the US, the UK, and Japan? Let alone Italy and Spain? 

Yet signs of fragility are everywhere. Consider:

Complacency following “secret” $114 billion bailout



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Personal Finance

Stock Exchange: Can Humans Compete with High Frequency Traders?

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Posted by Jeff Miller - Dash of Insight

on Friday, 17 March 2017 07:53

the-dark-pool-high-frequency-tradingMany individual investors have been frustrated by the growing prominence of High Frequency Trading. Complicated algorithms can process new information and react in fractions of a second. It sounds intimidating, and in some sense, it is. Individual Investors would be poorly suited for direct competition.

Instead, stick to what the market is giving you. The connections made by these programs are often spurious – totally unrelated to the fundamentals of a given business. This is intentional. After all, they’re after a quick buck rather than a long-term investment.

For that reason, a stock being walloped for frivolous story in the 24-hour news cycle may present an attractive buying opportunity. It all comes down to the individual investor’s process and commitment to their goals.

....continue reading HERE



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Personal Finance

One of the Most Effective Trading Tools for Investors

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Posted by Mike Burnick via The Edelson Wave

on Wednesday, 15 March 2017 11:02

Screen Shot 2017-03-15 at 10.39.39 AMMy mentor and friend Larry Edelson had an uncanny ability to correctly identify market tops and bottoms.

This includes calling the 1987 stock market crash weeks in advance. Plus, the great bull market bottom in gold that began at $250 an ounce in 2001, and the bear market top at over $1,900 in 2011.

What’s Larry’s secret weapon that made him so prescient with his market calls?

Larry’s life’s work over four decades was the study of cycles. He quantified and cataloged historical cycles stretching back hundreds and even thousands of years. He combined this with cyclical pattern recognition across hundreds of markets and individual securities.

Plus, he added his own unique methods of technical analysis, to produce one of the most effective trading tools any investor could hope for: His Artificial Intelligence Neural Net model with the power to indicate expected cycle highs and lows in stocks, bonds, commodities, currencies and more.

Larry devoted these last three years pouring himself and his vast investing experience into this model. And as my mentor of 15 years, he entrusted me and his team of analysts and traders here at Weiss Research with his most closely guarded secrets and strategies for reliably detecting key market turning points.



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Personal Finance

Illinois Passes on Pension Debt Interest Payments

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Posted by Mike Burnick via The Edelson Wave

on Friday, 10 March 2017 15:47

Screen Shot 2017-03-10 at 2.25.09 PMA report earlier this week revealed that Illinois isn’t paying the $9.1 billion annual interest payment on its pension debt.

You read that right: They’re not going to pay.

And it’s no wonder: As it stands, the Illinois state pension fund is underfunded by $130 billion. And likely to worsen if fund managers fall short of the 7% annual return that’s already baked into the cake.

Larry’s told you about the pension crisis in the past. And I knew it was bad in Illinois.

But not this bad.

Well then again, they haven’t had an annual budget for 19 months and they have accumulated $11 billion in unpaid bills.

What’s worse is that Illinois has the highest property taxes in the nation and the worst credit rating. As a result, residents are leaving at an alarming rate. And that’s crushing the tax base and pushing it toward decade lows.

Result: The debt spiral will get worse.

What are state legislators going to do?



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Personal Finance

Martin Armstrong: Connecting the Dots

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Posted by Martin Armstrong - Armstrong Economics

on Thursday, 09 March 2017 09:43

Connecting-DotsUnderstanding that one must watch the world to ascertain the trend even domestically is critical – this is what separates a domestic trader from a professional hedge fund manager. You simply have to know what is happening out there on all fronts. Connecting the dots allows you to see the full picture of what exactly you are dealing with.

However, understanding what is taking place in Ukraine is more than a mere subject of depressing corruption and war. What you are looking at is how people respond to events, for when similar events unfold here, since we are all human, we will respond in a similar manner.

There are those who see this as purely a capitalistic system that we live in today. We by no means enjoy such freedom. Communism owns everything and you work for the benefit of the state. Socialism is where you own the property, but the state dictates how much you are allowed to keep from your earnings. Capitalism is where we have the freedom to be what we want. You hear claims on how Hillary was for the middle class yet all the big bankers, hedge funds, and foreign governments supported her. Was this to help the middle class or themselves? Corrupt politicians pretend to care for people and then sell loopholes to the highest bidder. This is not capitalism – this is an oligarchy.

Capitalism would be economic freedom and to achieve that it requires TERM LIMITS, end of political donations, and the end or over regulation such as there were 7 agencies that all approved the CDOs the bankers wanted. Not a single one reviewed anything with an eye on the economy.

This is the two-tier level of importance in observing the world around you. WE WILL GET THROUGH THIS, if we just for once learn how everything works. Then and only then can we take the next step in evolution.

...also from Martin: 
 
Jarrett & Obama Even Live Together – She is Said to be Fixated on Overthrowing Trump
 
 


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