Al's Insights – Sat 16 Jun, 2012

I had the priviledge of appearing on Canadian radio earlier today.

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Al Korelin

  1. On June 16, 2012 at 2:53 pm,
    benb says:

    Very good Al, just 1 question, canadian banks, better situation than u.s. but are they good enough to withstand the shocks? Bob m says all banks are gonna get nailed and i’ve heard a few other people saying canadian banks being better off is a falacy.
    Could you explain how you figure their better off?
    I really do hope your right, just like to know your figuring.

    • On June 16, 2012 at 6:34 pm,
      John W. Robertson says:

      I once saw a list of Canadian banks implicated in re-hypothecation…I think it was Royal Bank, Bank of Nova Scotia and possibly Bank of Montreal.

      Several Canadian banks got nailed in the early 80’s, particularly BoM. It took them years to catch-up. Canadians seem to traditionally ‘fear’ debt, whereas when I moved to Arizona, taking on debt seemed celebratory as you could write it off on your taxes. That single trait alone is one reason Cdn banks remained healthy. Hard to say who really is re-hypothecated or not, but that’s a risk to many banks around the world.

      There’s actually not many banks in Canada. Here in the US, smaller banks are everywhere. Having fewer but larger banks helped too. And of course, there’s the old risk-averse, 25% down-payment of many Canadians. But if the EU stops importing (from everywhere, not just any one country), and derivatives hammer markets, no country is going to come out healthy. If a nation relies on trade — and every G20 nation does — they’re going to be affected.

      • On June 16, 2012 at 8:33 pm,
        Big Al says:

        You bet they are, John W!

        Big Al

  2. On June 16, 2012 at 3:01 pm,
    Big Al says:
  3. On June 16, 2012 at 3:31 pm,
    benb says:

    Thanks for the link Al.
    OK, stronger than other banks,agreed. Strong enough to overcome the derivities Mr. Bob is concerned with? Im not so sure, Mr. Bob has alot of chocolate chips in his cookie. Really enjoyed that interview, maybe cause it was a canadian station, good to know those discusions happen on canadian radio, even if rare.

    • On June 16, 2012 at 4:55 pm,
      Big Al says:

      Hi benb,

      You guys do have some pretty good stations up in our neck of the wooks!

      Big Al

  4. On June 16, 2012 at 6:11 pm,
    Mike says:

    Hi Al,
    As a native Winnipegger, now running a company in China, it was great to hear you on my hometown radio. Great interview and keep up the great work!

    • On June 16, 2012 at 6:35 pm,
      John W. Robertson says:

      Portage and Main, 50 below…. – Randy Bachmann

    • On June 16, 2012 at 8:36 pm,
      Big Al says:

      Many thanks, Mike.

      I really enjoyed the interview!

      Big Al