How Big 5 Banks Thrive Despite Canadian Economic Downturn

Higher Prime rate on existing variable loans/Mortgages portfolio gave big boost to Canadian Banks in their profit book. So we can see who was the biggest beneficiary of not reducing prime rate

As things wind down (as construction projects finish, auto manufacturing quietly moves south, steel slows down, etc.) Canada’s economy is headed for a deep restructuring. Unfortunately, this time we don’t have the resource sector to bail us out (thanks Justin!). There is a solution: 1. Drop the Chinese tariffs, invite Chinese autos into the country (lowering the cost to own a vehicle for the average individual) 2. Put in place a retraining program for laid off auto workers into the trades (like welders for a pipeline to the East Coast). 3. Invite the Chinese to manufacture in Canada and do a skills transfer to foster local talent. 4. Build the pipeline (avoiding First Nations land and thereby large financial payouts) and avoiding Quebec (same reason) - bolsters our steel industry. The big three auto manufacturers are dead men walking. Let’s cut our loses and move towards the future rather than invest in dead companies run by individuals who saw this coming and chose to ignore it (meanwhile paying themselves multi-million dollar bonuses). We can try and prop up yesterday’s companies or create an environment for well-run companies to succeed and our economy with them. Let’s choose the future, not the past.

Profit through the roof because we don’t have competitive Banking options , this is the reason we need foreign Banks with same regulations as local Banks but w Canadians don’t like this idea, So I am sorry for floating this idea

“And maybe that's not a bad thing, no one wants a teetering banking sector” And there lies what makes the situation OK. Been hearing that (and somewhat believing that - it IS true……but not right ) since the 80s. They’ve always run things. They own the politicians. They make the real decisions. George Carlin referred to these types as ‘the Owners’, the REAL ‘Owners’. He also referred to ‘The Big Club’ that the Owners are a part of. And we’re not invited to the club. Been like that forever. Will be like that long after I’m gone.🤷♂️

The middle class had /has the responsibility of consumption and connecting the lower class to the elite by encouraging, incentivizing or reaching for the middle class in “status” and lifestyle. And keeping the elite somewhat thinking about or pretending to engage in ethical business practices. It’s a structure that has been in practice for generations. This structure appears to be deteriorating by design and it’s being institutionalized. The results will be catastrophic for some and euphoric for others! The people alive today haven’t seen what the results will look like

The big banks also announced cuts to staffing earlier this year and service fee increases. They are not about customer service, just profits.

Time to allow property taxes up to $5k and the first $5k of mortgage interest to be tax deductible on principle residences. Effective tax rate has to go down for middle income Canadians immediately and only ones winning right now are the tax authorities and the banks.

I love your posts...you put things into real, short and understandable terms. Thank you!

Bond yields are about to tumble because we have no growth.