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Is The Next Domino To Fall.... Canada?

Tyler Durden's picture


While two short months ago, "nobody" had any idea that Italy's banks were on the verge of insolvency, despite that the information was staring them in the face (or was being explicitly cautioned at by Zero Hedge days before Italian CDS blew out and Intesa became the whipping boy of the evil shorts), by now this is common knowledge and is the direct reason for why the FTSE MIB has two choices on a daily basis: break... or halt constituent stocks indefinitely. That this weakness is now spreading to France and other European countries is also all too clear. After all, if one were to be told that a bank has a Tangible Common Equity ratio of under 2%, the logical response would be that said bank is a goner. Yet both Credit Agricole and Deutsche Bank are precisely there (1.41% and 1.92% respectively), and both happen to have total "assets" which amount to roughly the size of their host country GDPs, ergo why Europe can not allow its insolvent banks to face reality or the world would end (at least in the immortal stuttered words of one Hank Paulson). So yes, we know that both French and soon German CDS will be far, far wider as the idiotic market finally grasps what we have been saying for two years: that you can't have your cake and eat it, or said otherwise, that when you onboard corporate risk to the sovereign, someone has to pay the piper. Yet there is one place where that has not happened so far; there is one place that has been very much insulated from the whipping of the market, and one place where banks are potentially in just as bad a shape as anywhere else in Europe. That place is.... Canada.

As the chart below shows, which is a ranking of global banks by tangible common equity, lowest first, of the banks with a TCE ratio of under ~4% a whopping 30% are those situated in Canada, the same place where nobody thinks anything can go wrong, and which has been completely spared from the retribution of the bond vigilantes. Something tells us Canadian sovereign CDS, not to mention Canadian bank CDS, are both about to go quite a bit wider...

h/t Geoffrey Batt


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Thu, 08/18/2011 - 15:27 | 1574147 Stoploss
Stoploss's picture

LOLOL!!!! Sorry, i can't help it.

Thu, 08/18/2011 - 15:31 | 1574163 redpill
redpill's picture

What's this all aboot, eh

Thu, 08/18/2011 - 15:35 | 1574192 wang (not verified)
wang's picture


30% of Canada`s banks

that would be one bank


Thu, 08/18/2011 - 15:37 | 1574208 Pladizow
Pladizow's picture

Whats all this blasphamy aboot, Eh!

Thu, 08/18/2011 - 15:51 | 1574271 TruthInSunshine
TruthInSunshine's picture

Well, it would seem dat der is some talk abooot money troubles in Canada, dontchya know.


Drop ze puck.

Thu, 08/18/2011 - 17:10 | 1574621 wang (not verified)
wang's picture

here is the TCE ratio  (TCE/RWA)  for each of  Canada`s Banks for Q1 2011 (all in the 9% to 10% range) similar for full year and prior year


I believe that US Treasury has as their target a TCE/RWA of 4% (and if I am not mistaken that ratio is the standard currently in use when discussing TCE in the context of evaluating a banks capital adequacy) - some further explanation of the chart in Tyler`s post would be of value  (I`m guessing it`s TCE/TA)

full report on Canada`s banks (large file)


and more on the Treasury and the  TCE ratio

Thu, 08/18/2011 - 17:16 | 1574765 Sancho Ponzi
Sancho Ponzi's picture

Last year Deutsche Bank stess tested 42 Euro banks, and they averaged 3.2%. Can you say KABOOM?


Thu, 08/18/2011 - 17:55 | 1574924 sleepingbeauty
sleepingbeauty's picture

I'd really like to understand this information, as I have money in a ScotiaBank drip and this is the first I've heard of Canadian banks being risky. I know that CIBC is the cowboys of Canada, but even CIBC is pretty well conservative when compared with other countries.

Thu, 08/18/2011 - 18:49 | 1575076 wang (not verified)
wang's picture

read the above PDF and make up your own mind - Tyler tossed out a metric, which is great but there are manifold metrics that measure the health of a financial institution so it would be of value if Tyler could perhaps provide some context and background on the TCE metric he chose to use vs the widely used TCE/RWA, which the Canadian banks score very well on.

Fri, 08/19/2011 - 03:40 | 1576112 ZeroPower
ZeroPower's picture

Wtf? This is a joke article. Definitely not by 'Tyler' TD but by a newbie intern probably.

And im not even biased towards Canadian banks.

How about you look at their (core) T1 ratios, their NPLs/Loans, RoRWA, Loan loss reserves, etc etc i could go on.
Bar none, the Cad banks are the safest in the world. Add in some Scandinavia though i havent personally done my DD there just have been told they are decent as well

How about exposured to peripheral sovs on their banking book? Even RBC CM which is the largest CAD bank in the CM space, they have virtually zero exposure to Greece and the other shit sovs. The large US bulge banks and of course every single large EU bank is taking haircuts in the area of 15-30% on their banking book. Disastrous for their equity..

Finally, there is no CAD sov CDS. Definitely proofread the stuff posted by your other members, Tyler.

Sat, 08/20/2011 - 08:20 | 1580684 jic
jic's picture

How about Canada Housing trust balance sheet is ballooning, eventually the mortgage bond holders will want to be compensated for this risk with higher rates.

Sure our banks will enjoy this higher rate enviormemnt with higher deposit rates and with a CDN government PUT on CMHC mortgage buy back, our banks will

be made whole good but our government will have egg on their face in allowing this low interest policy to run so long and allow our housing bubble to linger !

Thu, 12/01/2011 - 19:23 | 1936696 ucsbcanuck
ucsbcanuck's picture

Thanks jic - many in Canada think we are somehow "special" and "different". No we aren't. Today I had a discussion with friends about this issue. As usual, it ended with a "We are not US! We are not Europe!" diatribe. 

You can't compare Canada to anything in US or Europe now - and that includes cell phone plans LOL! It always ends with "We have a stronger financial system than the US or Europe." Or some other nonsense.

Just the other day, there was an interesting article in the Ottawa Citizen about high tech in the Ottawa area. For those familiar with Ottawa - it used to be known as Silicon Valley North and was the high tech centre of Canada. Not any more:

"The fact that Shopify set up here is very much an accident. Lütke followed his girlfriend, now wife, here. Chief technology officer Cody Fauser moved to Ottawa from B.C. because his wife got a job with the government. Not only that, the city would have lost this startup to California had Shopify not been so successful early on that moving became problematic.

"I always thought of Shopify as this San Francisco company that took a wrong turn and ended up in Ottawa," says Lütke. Even now, for two weeks every quarter, Lütke travels to California's Silicon Valley to "recharge my battery of thinking big."

However, whenever I tell people here in Ottawa I'm thinking about moving back to CA, there's always the inevitable "OMG why would you want to move to California. It's sooo awesome here." Well, if it's so awesome here - where's our Google? Facebook? Apple? Intel? RIM is cratering right now. Nortel already bit the dust. 

One of my friends from South Africa said once at dinner - why wouldn't someone in high tech want to work in Silicon Valley? Immediately the whole dinner table started complaining about California. Inevitably the discussion became about the California economy! Nobody wanted to even contemplate the fact that CA might be better for high tech than Canada.



Thu, 08/18/2011 - 17:13 | 1574750 IrritableBowels
IrritableBowels's picture

o yaw? noe clue.

Thu, 08/18/2011 - 16:00 | 1574344 itchy166
itchy166's picture

Reread.  30% of the banks on this list are Canadian...not 30% of Canadian banks are represented.

And it looks like 100% of the big Canadian banks are on the list.



Thu, 08/18/2011 - 16:32 | 1574541 Howard_Beale
Howard_Beale's picture

For all intents and purposes, Canada's Big 5 are the banking system in Canada. When TARP occurred, they were bailed out at the same time in a budget line item that the Canadian public was not aware of for several months. The Toronto Star did an investigation and found the $500 billion in funds that were budgeted to the banks.

Thu, 08/18/2011 - 17:04 | 1574690 wang (not verified)
wang's picture

howie $500 billion is half of  Canada`s  GDP if I am not mistaken I think the number was $25b later bumbed to $75

Thu, 08/18/2011 - 18:55 | 1575089 macholatte
macholatte's picture

OK. Let me see if I get this right..... the American tax payer via its Pimp, the Fed, bailed out Canada as well as Europe while the MSM told everybody (and maybe the dim witted President & VP too) that all the money was going to shovel ready BS. Did I get that right or did I miss something?



noun      an artifice or expedient used to evade a rule, escape a consequence, hide something, etc.

Synonyms:   deception, scheme, trick, dodge, ruse.




Thu, 08/18/2011 - 15:38 | 1574217 bankrupt JPM bu...
bankrupt JPM buy silver's picture

Good.  All the somolian taxi cab drivers are abooot to lose those $300K homes at 2% variable. 

Thu, 08/18/2011 - 15:57 | 1574335 Burr's 2nd Shot
Thu, 08/18/2011 - 16:21 | 1574438 Betty Swallsack
Betty Swallsack's picture

It IS laughable and hardly news.  Anyone paying attention merely has to check out the derivatives exposure of our Canadian banks (Canadian Imperial Bank Of Commerce, TD Canada Trust, Bank of Montreal, Royal Bank of Canada, et al).  Just Google 'derivatives exposure canadian banks'.

Here's a sampling:

Thu, 08/18/2011 - 16:36 | 1574561 Howard_Beale
Howard_Beale's picture

Interesting data but the guy was short the big 5 on 9-15-2009. Ouch.

Fri, 08/19/2011 - 03:46 | 1576122 ZeroPower
ZeroPower's picture

Um, its from 2009. Taking the first metric posted there which is ever important T1 leverage, its as at July31 09. All banks in the world were heavily under their targets at that point! Currently if i were to average the CAD banks itd be around 9% Tier 1 lev... take SocGen this week and theyre at about 6%, BAC might be trying to boost it a bit with their asset sales.

Anyway, metrics from 2 years ago dont matter.

Thu, 08/18/2011 - 17:26 | 1574814 IQ 145
IQ 145's picture

I like these nice easy questions; the answer is NO. This sounds like something written to have a crazy contest with George Washington.

Fri, 08/19/2011 - 02:01 | 1575974 He_Who Carried ...
He_Who Carried The Sun's picture

No, Mr Durden, this time you got it wrong and your data is too narrow and biased.

It may well be that Canadian banks will be drawn down by the general global problems

but not on their own like SocGen or its Italian, Irish, Greek counterparts.

Stop fearmongering, it easily becomes immoral when overplayed.

Thu, 08/18/2011 - 15:27 | 1574148 Gene Parmesan
Gene Parmesan's picture

Where has Leo been lately?

Thu, 08/18/2011 - 15:30 | 1574160 Almost Solvent
Almost Solvent's picture

No longer @ ZH for some reason or another

Thu, 08/18/2011 - 15:31 | 1574169 gulf breeze
gulf breeze's picture

Leo and Robo are trolls

Thu, 08/18/2011 - 15:42 | 1574250 Vic Vinegar
Vic Vinegar's picture

Agreed.  They are most definitely trolls to those who like to live in an echo chamber. 

I hope you enjoyed writing your comment.

Thu, 08/18/2011 - 15:47 | 1574278 tmosley
tmosley's picture

Trolls are one thing, but those guys were so consistantly WRONG in every last one of their calls that their presense here had degenerated into nothing more than a farce.

If you are going to be bullish, be bullish for the right reasons.  And admit when you are wrong.

Thu, 08/18/2011 - 15:54 | 1574318 Vic Vinegar
Vic Vinegar's picture

their presense here had degenerated into nothing more than a farce.

I agree.  They didn't think the world was going to end tomorrow and tried to share their takes on the market. 

Thu, 08/18/2011 - 16:13 | 1574404 RockyRacoon
RockyRacoon's picture

RobotTrader used to post nice pics of scantily clad wimmin but not lately.  Must have had privileges revoked.  Without that he was out of ammo.   Leo used to post videos of stupid Europeans vacationing on Greek islands getting drunk -- went on hour after boring hour.   They're gone?   So what.   Waste of bandwidth.

Thu, 08/18/2011 - 16:50 | 1574631 slewie the pi-rat
slewie the pi-rat's picture

i agree that pictures take up bandwidth, especially for the poorer zeroHeads worldwide, who may get quite slowed by them.

leo went away mad, apparently.  he may have been claiming he wasn't allowed to defend himself, here.  not sure;  pretty hard to speak for another.

RT will be baaaaack, i'll betcha.  one of our strapped avatars was concerned, last hiatus, and RT re-emerged.  still, this time,...who knows? 

personally, rocky, i think RT misses the junks

Fri, 08/19/2011 - 00:52 | 1575825 fuu
fuu's picture

I miss the Junk button more than RT at times.

Thu, 12/08/2011 - 03:00 | 1957568 BorisTheBlade
BorisTheBlade's picture

Junk button was as blind as justice, beautiful.

Thu, 08/18/2011 - 15:50 | 1574298 gulf breeze
gulf breeze's picture

Robo is a troll that hides when market is not going his way.  I am long FAS @ 12.61.  It does not matter to me which way it goes. I will not critique others on their forecasts.  Robo constantly bashed on the contributors while posting 15 min charts after huge moves.  Fock him and his bank rally that I am betting with stops.

Thu, 08/18/2011 - 15:52 | 1574306 fuu
fuu's picture

No they are trolls for BRINGING the echo into this chamber. This is the refuge from the echo chamber that surrounds you at those other "news" sources.

Thu, 08/18/2011 - 16:15 | 1574410 Vic Vinegar
Vic Vinegar's picture

Aw shucks…I thought this was the place for smiles, cupcakes and greenies.  Am I on the wrong website?

I read a lot of their work and it seemed each knew quite well what’s going down.  But your point is understood, if not agreed with.

Thu, 08/18/2011 - 17:31 | 1574849 IQ 145
IQ 145's picture

---"it seemed each knew quite well what was going down." Wow. that's amazing. I guess you're one of those people who learned how to read, but it didn't do any good. It would be very, very, difficult to be wronger than Leo, and for all the wrong reasons. Robo Trader was a bullshit artist.

Thu, 08/18/2011 - 17:49 | 1574903 Vic Vinegar
Vic Vinegar's picture

Let's just agree to disagree.  On a personal note, thanks for not tossing around an excessive amount of semicolons in that comment.

Thu, 08/18/2011 - 15:39 | 1574223 tmosley
tmosley's picture

He lost his contributor status and got all weepy and pissed off at Tyler, and is currently sucking his thumb while wearing a diaper in his mother's closet, which is his new bedroom.

Thu, 08/18/2011 - 15:40 | 1574232 Gene Parmesan
Gene Parmesan's picture

Ah - sorry to speak of the dead in that case. On to the business at hand then.

Thu, 08/18/2011 - 15:45 | 1574266 EvlTheCat
EvlTheCat's picture

ROTFL....  Wow, coming up in the world is he!?

Thu, 08/18/2011 - 16:14 | 1574415 RockyRacoon
RockyRacoon's picture

He is communing with MasterBates?

Thu, 08/18/2011 - 16:21 | 1574463 Flakmeister
Flakmeister's picture

WTF ever happened to Johnny Bravo?

Thu, 08/18/2011 - 16:29 | 1574517 Sancho Ponzi
Sancho Ponzi's picture

I think he morphed into Math Man who morphed into Harry Wanger who morphed into Hamy Wanger who morphed into Harry Wanqer. 

Thu, 08/18/2011 - 16:32 | 1574539 Flakmeister
Flakmeister's picture

You missed William the Bastard....

My fav was Texas Gunslinger.... I think he suffered from multiple personality disorder

Thu, 08/18/2011 - 17:22 | 1574796 Raphio
Raphio's picture

I hear gunslinger got a job as a CEO (Chief Executive Officer) at some fabulous new internet startup

Thu, 08/18/2011 - 17:34 | 1574834 Raphio
Raphio's picture

But seriously, CIBC, for instance, always seems to be the hoser bank most involved in dubious affairs.... the had the greatest Canadian exposure to Enron and plenty dodgy MortgageBS...

Thu, 08/18/2011 - 17:46 | 1574897 Flakmeister
Flakmeister's picture

"Best non sequitur of the thread" winner

Thu, 08/18/2011 - 16:35 | 1574542 Sancho Ponzi
Sancho Ponzi's picture

...who morphed into Texas Ginslinger

LMAO, simultaneous posts. Gunslinger turned into Ginslinger.

Thu, 08/18/2011 - 16:53 | 1574650 slewie the pi-rat
slewie the pi-rat's picture

i dunno, ponz, i usta offer the gunslinger dog food coupons for his sunday shopping trip, and i'm not even close that with his 'clone'

Thu, 08/18/2011 - 17:07 | 1574731 Sancho Ponzi
Sancho Ponzi's picture

That's a shame, Slew. Gunslinger's posts were all over the place - kinda like a whirling dervish on acid. 

Thu, 08/18/2011 - 15:28 | 1574151 dwdollar
dwdollar's picture

Take cover!  Black swans are landing in North America!!!

Thu, 08/18/2011 - 15:30 | 1574159 imsaul0968
imsaul0968's picture

Our Risk On/OFF Model has been sniffing recession triggering a risk-off trade 6/30 so we've missed the entire move down in SPY and are now +8% YTD vs negative SPY. We are opening up our weekly commentary to those on ZH emailing me at Just send me your email and I'll add you to our weekly market update with risk-on/off signals.  Got gold?

Thu, 08/18/2011 - 17:01 | 1574683 slewie the pi-rat
slewie the pi-rat's picture

very self-effacing of you, saul, but we're starting to get a wee bit wise to people self-linking, here, and collecting e-mail addresses of the more moronic.  maybe they work for google, who knows?  "got gold?"  

nothing personal, maybe you're legit, but at this point, with your bullshit here and the "extra hook" to try for the link hit, who cares? 

Thu, 08/18/2011 - 17:04 | 1574713 slewie the pi-rat
slewie the pi-rat's picture

this isn't FacefukingBook, here, people

Thu, 08/18/2011 - 17:07 | 1574734 Vic Vinegar
Vic Vinegar's picture

A strong case could be made that it actually is. 

Imagine if one day you woke up, fired up Zero Hedge and saw a "Farmville" link atop this site, between "donate" and "rss".  Worlds would be rocked!

Thu, 08/18/2011 - 17:22 | 1574791 Vic Vinegar
Vic Vinegar's picture

For what it's worth slewie I would water the crops on your farm out of respect and water Max Keiser's crops for irony's sake.

Maybe Zero Hedge can partner with Zynga to come up with some kind of solution to the junks, reds/greenies thing? 

Thu, 08/18/2011 - 17:36 | 1574866 IQ 145
IQ 145's picture

--"a strong case could be made that it actually is." No this case cannot be made. Apparently my diagnosis was correct, you learned to read, but it didn't help.

Thu, 08/18/2011 - 17:52 | 1574914 Vic Vinegar
Vic Vinegar's picture

Let's just agree to agree on this one dude :-)

Thu, 08/18/2011 - 21:54 | 1575598 slewie the pi-rat
slewie the pi-rat's picture

...if you like being will perhaps value that in other people here, too...both you shitheadz are very smart, btw...

Thu, 08/18/2011 - 19:45 | 1575207 fuu
fuu's picture

The only reason that thought should even be entertained is that it would include an ignore feature.

Thu, 08/18/2011 - 18:23 | 1575012 Larry Dallas
Larry Dallas's picture

Love it. No different than this guy today... High school hero, real life zero...

Thu, 08/18/2011 - 22:00 | 1575622 slewie the pi-rat
slewie the pi-rat's picture

hey, La_D.  member:  29 weeks , 21 hours

                 total posts:  4.  all in the last 9 weeks, with 3 in the last 3 weeks and 1 last week and 1 today

that's you, shithead!  

hi, larry!  you are very flattering, here!  But i didn't hit the link, if that doesn't hurt your feelings, k?

Fri, 08/19/2011 - 00:39 | 1575787 fuu
fuu's picture

So many phish, so little fry.

Tue, 09/20/2011 - 14:15 | 1689550 Larry Dallas
Larry Dallas's picture

You don't have to because everyone on this post did and now they get the idea.

I'm going to go out on a limb and guess that you weren't breastfed as a baby... Don't tell me, I know the odds are great just reading how everyone reacts to you.

And the number of posts you place on ZH and the time you've been on here won't get you laid either.

Thu, 08/18/2011 - 15:33 | 1574175 Sudden Debt
Sudden Debt's picture

hmmmm.... Fois Gras....


Thu, 08/18/2011 - 15:48 | 1574285 redpill
redpill's picture

I hear they serve Black Swan Foie Gras at every meal on Martha's Vineyard


Thu, 08/18/2011 - 15:57 | 1574336 Sudden Debt
Sudden Debt's picture

They serve it to the dogs over there.

Todays supper is Bald Eagles on a spit.


Thu, 08/18/2011 - 17:28 | 1574827 Mesquite
Mesquite's picture

...Bald Eagles on a spit...


Thu, 08/18/2011 - 17:37 | 1574873 IQ 145
IQ 145's picture

!! good heavens.

Thu, 08/18/2011 - 15:49 | 1574152 Manthong
Manthong's picture

Could be a hoser, eh?

Flak, had the same thought at about the same moment.. I just went shopping for something suitably affronting to add.



Thu, 08/18/2011 - 16:06 | 1574373 Flakmeister
Flakmeister's picture

Call it a photo-finish...

Thu, 08/18/2011 - 15:28 | 1574153 Flakmeister
Flakmeister's picture

Bunch of hosers, eh?

Thu, 08/18/2011 - 15:39 | 1574202 Dr. Richard Head
Dr. Richard Head's picture

They could always launch some CMSOs (Collateralized Maple Syrup Obligations) to buffer the loss.

Thu, 08/18/2011 - 15:44 | 1574256 the not so migh...
the not so mighty maximiza's picture

take off you hoser

Thu, 08/18/2011 - 16:08 | 1574380 Flakmeister
Flakmeister's picture

Arrggh, Billy have you ever been to sea, boy?

Oh, no, Captain Hindgrinder!

Thu, 08/18/2011 - 16:24 | 1574484 Betty Swallsack
Betty Swallsack's picture

Did you ever screw that one up.  The punch line is, "No, but I've been blown ashore".

Not to be confused with, "Get off Dad, you're crushin' my smokes".

Thu, 08/18/2011 - 16:29 | 1574522 Flakmeister
Flakmeister's picture

No, not at all...

Stems from an old TV ad for Highliner fishsticks...if you were Canadian you would recognize it.

Thu, 08/18/2011 - 16:56 | 1574663 Ellesmere
Ellesmere's picture

Yes indeed...

We Canadians have been getting mileage out of those old ads for close to 30 years....true classics.

Thu, 08/18/2011 - 17:06 | 1574727 Flakmeister
Flakmeister's picture

Ever see Mr. Dressup and Alan Greenspan in the same room?

Thu, 08/18/2011 - 17:39 | 1574878 Arkadaba
Arkadaba's picture

That would be classic!

Thu, 08/18/2011 - 17:42 | 1574887 Flakmeister
Flakmeister's picture

Come to think of it... Timmah could pass himself off as Casey...

Thu, 08/18/2011 - 18:14 | 1574989 Arkadaba
Arkadaba's picture


Thu, 08/18/2011 - 16:22 | 1574471 Betty Swallsack
Betty Swallsack's picture

'Hoser'? Ah c'mon. Still stuck in the 80's?

Thu, 08/18/2011 - 18:29 | 1575028 andybev01
andybev01's picture

"Koo loo koo koo, koo loo koo koo!!"

Thu, 08/18/2011 - 15:29 | 1574158 Franken_Stein
Franken_Stein's picture


And what about the elephant in the room that nobody talks about, which is the U.S. ?

What about the Rockefeller-owned J.P. Morgan Chase ?


Thu, 08/18/2011 - 15:33 | 1574178 redpill
redpill's picture

They are better are screwing the citizenry and thus will survive longer.

Thu, 08/18/2011 - 20:54 | 1574233 knukles
knukles's picture

Federal recipients of campaign contributions ensure we the people taxpayers absorb their losses.

First loss layer = innocent civilian peasantry.

Thu, 08/18/2011 - 15:33 | 1574182 Caviar Emptor
Caviar Emptor's picture

Sacrosanct. If that goes, it's the Bastille all over again. 

Thu, 08/18/2011 - 15:35 | 1574190 Long-John-Silver
Long-John-Silver's picture

Hugo Chavez will soon own JP Morgan

Thu, 08/18/2011 - 15:37 | 1574214 Sudden Debt
Sudden Debt's picture



I like it! I wonder how the logo will look like!

Thu, 08/18/2011 - 15:41 | 1574234 Threeggg
Threeggg's picture

Banzai7 "enter stage left"

Thu, 08/18/2011 - 15:55 | 1574313 EvlTheCat
EvlTheCat's picture

Sounds like a new kind of Rum.

Makes you feel punch drunk after a single shot.  Blabber on for hours about the devil and earthquakes.  Then right before you blackout, you get the uncontrollable urge to have anal intercourse with sheep in a pile of FRN's.

Thu, 08/18/2011 - 16:13 | 1574401 Cheesy Bastard
Cheesy Bastard's picture

Stay thirsty my friends.

Thu, 08/18/2011 - 18:26 | 1575020 Larry Dallas
Larry Dallas's picture

Im sitting here crying reading this, too funny. +1000.

Thu, 08/18/2011 - 16:04 | 1574362 ZippyDooDah
ZippyDooDah's picture

Exploding Burritos!

Thu, 08/18/2011 - 15:35 | 1574193 Long-John-Silver
Long-John-Silver's picture


Thu, 08/18/2011 - 16:25 | 1574456 slewie the pi-rat
slewie the pi-rat's picture

fuking jamie is opening branches all over cali and all over the country, too, from a bit 0'sign i have read here, doctor.  they owe slewie $125 after sending me a coupon.  when i went in, i opened an account.  when i wondered why the $125 wasn't in it, the person to whom i spoke (b/c my "personal banker" w/whom i had signed up) was busy opening coupon accounts) told me "next week"... which point the third person told me that the $125 would not come to me for...six months and would i like a copy of the printout?  i responded no thank you, i had my file.  i spoke with my dad later and told him that over @ the morgue people probably thought i couldn't understand the terms of my checking acct but that it was so funny, that i just couldn't get mad about it! 

i had done this a year or two ago for $100.  then they changed the terms of the account from "free" to "expensive" without this here certain amt of minimal activity, right here in this letter we sent you in a plain vanilla #10 envelope like they send debit card in, ya know?, which many people might not even open, much less read, with 2.5 diopter glasses and a magnifying glass (v. small print boilerplate) where the relevant info was down in abt para #5

so, i took my $1 outa the morgue and got a genuine FRN, instead!

now, i have this great new situ, where my 00-riginal $100 to-open bet now = $1  aka "the slewie dollar in the fuking morgue" again.

this timer when i talked to the nice lady who offered me the print-out, i also asked her if they had any record of the letter i had received in a plain vanilla #10 envelope like they send the debit cards in right after i had opened the account.  what did the letter say?  please!  just look in the computer to see if there is any record of the letter.  no.  thank you for you help & good-bye.

when i fanally got ahold my "personal banker" [b/c he was so busy w/all the fuking coupons? and i do not leave personal info w/ banks where i blocked caller ID before i dialed; so he didn't know...?] he reckoned i had understood him correctly, but they change the damned coupons so often...

i like the kid, so i told him it didn't matter.  wtf, who cares?  he's a kid.  and that's my bottom line;  it ain't changin.  i asked him if he been taught the law of agency yet, in his MBA work or undergrad.  it seemed not.  when i started to explain it to him, he made a serious mistake:  he interrupted me & tried to cut me off.   maybe he had a coupon to redeem, i don't know.  at which point he heard "slewie & thelaw of agency" @ hi-decibels and everone w/in 4 blocks of my screened window also knows the law of agency, too, now! 

but, he understood what i wanted him to and what i considered the rules to be, when he represented me to the people who have my $125, which i'm not sure he's gotten to, yet.  you know how kids are!

so then i asked him if there were any computer record of the letter &tc.  what did the letter say, slewie?   just answer my question, PLEASE.  nope. 

the letter, i said, informed me that if i made a deposit, that the bank might limit me to $200 withdrawal, the next day.  oh, well, that's if such and such and of course with cash, never, and blahblahblah.

that's not what the letter says.  rinse, repeat X3.  me:  look, man, the way the shit is hitting the fans, anything could be "the way it is" in a week. 

no, shit, slewie!  i hear that!!!

so much for jamie; you have a nice evening, bro-brat


Thu, 08/18/2011 - 16:29 | 1574512 slewie the pi-rat
slewie the pi-rat's picture

am now having this thought:  does "jamie" know "ori"?

Thu, 08/18/2011 - 20:57 | 1575375 knukles
knukles's picture

+ Fucking Priceless.
Maybe a good thing we weren't drinking buddies.

Thu, 08/18/2011 - 22:02 | 1575632 slewie the pi-rat
slewie the pi-rat's picture

mutual memory loss, but thx, and why do you look familiar?  what's your sign?

Thu, 08/18/2011 - 15:30 | 1574162 Sudden Debt
Sudden Debt's picture

I know a lot of people who actually invested in Candian real estate these last 2 years.

kind of like a flight to... the woods.


Thu, 08/18/2011 - 15:37 | 1574212 fletcherhigh
fletcherhigh's picture

Pardon me as I am new to this Sudden Debt, but how is that turning out for them? I reside in Canada and would like to know, cheers! 

Thu, 08/18/2011 - 15:40 | 1574227 Sudden Debt
Sudden Debt's picture

According to them, very well and the outlook they talk about was pretty high to.

If I had the extra cash like they have, I think I would have done the same.


Thu, 08/18/2011 - 16:23 | 1574478 geminiRX
geminiRX's picture

Real estate is done in Canada. Anyone who bought in last 2 years and hasn't sold yet  - is going to get raped. Anybody arguing otherwise should ask themselves where the the US economy is headed and what percentage of the Canadian economy is dependent upon that. A nice blog that Canadian housing porn addicts should read is: Has great commentary about real estate but I don't subscribe to the "diversified, buy and hold bonds and stock stuff he advocates". Don't mention gold on the blog - he hates it.

Thu, 08/18/2011 - 17:44 | 1574894 IQ 145
IQ 145's picture

It's a very poor plan. The risk reward ratio is bad. You can get a silver contract at two to one margin you know. Stick with what you know and what is working.

Thu, 08/18/2011 - 22:09 | 1575657 slewie the pi-rat
slewie the pi-rat's picture

i like cananda and i like hozers, too

so do the chinese, judging from recent purchases in vancouver;  if they invade us from up there, they can have seattle for on a 50-year lease.  we need to have some smart mofos learn their lingo

that's it;  my final offer to them; take it or leave it;  but only if they come across the canadian border with ar least 2 infantry brigades.  smiling, too.  BiCheZ!

Thu, 08/18/2011 - 15:59 | 1574342 chet
chet's picture

Theyinvested in physical real estate?  Not in Vancouver, I hope.  They're likely to lose it all.

The near-term collapse of their housing market is the Number 1 most likley culprit in trashing the Canadian banks as discussed in this article.

Thu, 08/18/2011 - 15:31 | 1574165 oa92000
oa92000's picture

Another bad news, ???

come on , ZERO?? 

Thu, 08/18/2011 - 15:55 | 1574327 andybev01
andybev01's picture

All your happy are mine!


Your tears are delicious.



Thu, 08/18/2011 - 15:52 | 1574167 TruthInSunshine
TruthInSunshine's picture

The smartest Canadian I know (who happens to beeeee Assssian) swears that the Loonie is the short of a lifetime....not soon...but now.

Canada-Australia-New Zealand for the trifecta.

He also claims the real estate market in Canada is a ripe pustule (and that even Calgary is highly vulnerable WHEN oil drops below $50/barrel), and that austerity meets Canadian Welfare State sooner than 99% of Canadians are going to comprehend.

He could be wrong, but he is a self-made multi hundreds of millions-aire, making his money dissecting financial reports.

So maybe he's right.

Who knows.

And on that note, watch the EUR over the next month. It's all fun and games until nations lose their infrastructure and the politicans and central bankers lose the complete confidence of the populace (as they should lose it; bang up job, boys).

Thu, 08/18/2011 - 16:18 | 1574443 YHC-FTSE
YHC-FTSE's picture

I don't even want to think about the Euro over next month, let alone tomorrow. I'm dreading the day the ECB announces their new and improved sparkling whiter than white EZ bonds. As for the Canadian real estate boohah, I'd guess your smart Canadian (I haven't met a dumb one yet) may be thinking about the fiasco experienced in Vancouver's pump and dump real estate market that pauperised a few HK millionaires. 


Just thinking aloud here, but there's a strange yet compelling correlation between the English-speaking nations (Aust-NewZ-US-UK-Can) that are part of the Echelon network and their banks. I'm no philologist, but I'm beginning to form a theory that English is the language of bullshit, which corresponds with something another clever chap once said: "All language is a lie".


As for the article, is that why Barclays tanked today? Somebody had a look at the bank TCE ratio, scratched his arse and thought any bank that gave back below 3% of its stock value on liquidation instead of say, 5%, is a disaster area? I'd say losing 95% of an asset is as disasterous as losing over 97%, but then again I'm normal. 

Thu, 08/18/2011 - 17:49 | 1574907 IQ 145
IQ 145's picture

Very good post. I agree. I lived there for awhile, I love it, love the people. But, yes, I never met a dumb one either. "Never in doubt, but frequently in error".  Good analysis of the permanent attraction of real estate. I sold my farm there in 1974. As you know, this is not a time to fool around with real estate speculation.

Fri, 08/19/2011 - 03:49 | 1576126 ZeroPower
ZeroPower's picture

WHEN oil drops below $50/barrel),


Fri, 08/19/2011 - 09:40 | 1576822 TruthInSunshine
TruthInSunshine's picture

WTI near $70.

And we've only just begun.

Bernak Broke All Again.

Sat, 08/20/2011 - 13:23 | 1581377 data
data's picture

He might be right, but oil needs to get to $60 or lower.

I just don't think it happens. Too many American dollars being printed.  

I doubt oil gets to $54 this time. 

I'm a buyer of oil between $60 and $70.

So are the Chinese and they've got lots reserves.

Thu, 08/18/2011 - 15:36 | 1574171 Caviar Emptor
Caviar Emptor's picture

US 1oz Gold Eagles now only $4 away from $2,000 for purchase (by credit card). Last call. 


Thu, 08/18/2011 - 15:36 | 1574200 Sudden Debt
Sudden Debt's picture

silver is at 40 euro's a ounce already here in Europe.

It's becomming talk of the town between the upper and upper middle class right now to start buying.

Soon the middle class will start and than you have a raid on PM's.


Thu, 08/18/2011 - 15:40 | 1574222 Caviar Emptor
Caviar Emptor's picture

Expecting a bump. Agree. PMs are very underowned relative to the degree of economic risks, anxiety and lack of safe alternatives. 

Thu, 08/18/2011 - 15:42 | 1574247 knukles
knukles's picture

PMs and anti-depressants.

Thu, 08/18/2011 - 15:42 | 1574251 Sudden Debt
Sudden Debt's picture

I expect an all out war against PM's.

If the FED and the banks can't get these down, they risk of losing a hughe amount of depostis on them.

If they don't stop them in the next 2 months, it will be to late for them to interfeer.


Thu, 08/18/2011 - 15:46 | 1574274 Caviar Emptor
Caviar Emptor's picture

I think that jig is up. Too expensive and politically difficult to control now. And they don't make a move without the Fed. It's slipping away from them very fast. 

Thu, 08/18/2011 - 15:52 | 1574308 Sudden Debt
Sudden Debt's picture

They'll try many more times. Don't think they won't try to force it down.

But that doesn't mean you should care :) at least I don't.

I hope they will try to force it lower for a time.


Thu, 08/18/2011 - 16:52 | 1574644 Dog Paper
Dog Paper's picture

I'll go with cases of Canadian Club as a safe store of wealth.

Much more liquid.


Thu, 08/18/2011 - 15:46 | 1574273 Gunther
Gunther's picture

Silver at 40 euros?

In Germany you can buy them for 32 per oz what includes 7% vat, look for Wiener Philharmoniker.

Thu, 08/18/2011 - 15:50 | 1574301 Sudden Debt
Sudden Debt's picture

I would NEVER buy from a site like this!!



Thu, 08/18/2011 - 18:33 | 1575039 andybev01
andybev01's picture

"Wiener Philharmoniker." is that German for skin flute?

Thu, 08/18/2011 - 17:52 | 1574916 IQ 145
IQ 145's picture

over and over again I refer you to, right here on your computer. read the business model carefully. It's real silver. you really get to buy it and sell it, and you really can make your profits in more silver. Don't be a complete primitive; the silver in the trunk of the car is funny, but this is business, not a joke.

Thu, 08/18/2011 - 15:32 | 1574172 JohnFrodo
JohnFrodo's picture

Canada needs a good kick in the ass for electing the biggest one on the planet.

Thu, 08/18/2011 - 17:21 | 1574785 Bill D. Cat
Bill D. Cat's picture

Scoreboard beotch . Mayhap next go around you can get your coalition of commies elected .

Thu, 08/18/2011 - 15:33 | 1574177 machineh
machineh's picture

If China boils over, not only will it hit commodity economies like Australia and Canada directly, but also it will knock the props out from under the ever-bubbling Vancouver property market.

Maybe 2012 is Canada's turn to emulate the US housing crash. 

Fri, 08/19/2011 - 03:04 | 1576065 Seer
Seer's picture

Very well played.  This has been my exact prognosis for quite some time now.

The other angle on the China meltdown is that there's a TON of Chinese youth in Vancouver who are there on mommy and daddy's dime, and who will be recalled back to China.  This will kill housing demand.  The ripping point will be all the big mortages that were obtained via rental income potential: many folks rent out rooms (I know about this, as my wife used to do this up there).  Add in interest resets (everything is an ARM up there) and it gets pretty shaky.

There is absolutely NO upside here.

Sat, 08/20/2011 - 13:32 | 1581413 data
data's picture

"Add in interest resets (everything is an ARM up there)"

Historically Canadians vastly prefer fixed mortgage about 75% currently.



Thu, 08/18/2011 - 15:33 | 1574179 azzhatter
azzhatter's picture

But...but... Cramer says...............all time buy buy buy buy

Thu, 08/18/2011 - 15:34 | 1574185 Spitzer
Spitzer's picture

Im from Canada and have been short these banks since they blasted through pre lehman levels. Its been a rough trade but since the downgrade, its paying off.

Canadian people are financially illiterate.

Thu, 08/18/2011 - 15:41 | 1574241 Whalley World
Whalley World's picture

Sadly, you are correct.  My recommendations for many Canadians has been to buy Silver, what they hear is stay in my safe paper.

The Hosers are gonna get Hosed.

Thu, 08/18/2011 - 15:55 | 1574324 unununium
unununium's picture


Thu, 08/18/2011 - 15:44 | 1574258 knukles
knukles's picture

Does that mean we should drop the "financially"?

Thu, 08/18/2011 - 15:50 | 1574296 Arkadaba
Arkadaba's picture

Compared to who? Americans? lol!

Thu, 08/18/2011 - 16:27 | 1574501 NotApplicable
NotApplicable's picture

Well, there are lots of them that are financially literate. It just so happens that since they are Keynesians, they are incoherent as well, rendering the literacy moot.

Thu, 08/18/2011 - 16:07 | 1574376 Stumpy
Stumpy's picture

Illiterate yes. But talking about money is almost taboo here. When you care and learn about it, people think you're worrying too much.

Thu, 08/18/2011 - 16:44 | 1574603 NotApplicable
NotApplicable's picture

Then they attack you and call you greedy for being so entranced by money.

Thu, 08/18/2011 - 16:11 | 1574391 --Freedom--
--Freedom--'s picture

Any suggestions on the best way to short Canada? I've been quite happy, to put it mildly, with results from FAZ. Is there a Canadian equivalent?
Thanks in advance.

Thu, 08/18/2011 - 17:01 | 1574695 Spitzer
Spitzer's picture

HFD on the TSX is 2x

HIF on the TSX is 1x

Pile in. 52 week lows in these shorts where not that long ago.

Thu, 08/18/2011 - 17:57 | 1574929 IQ 145
IQ 145's picture

Jesus Christ man, you don't go short on the lows, you go short on the highs. Talk about financial illiiterates. You buy dips, you don't sell them. Or simply stand aside. Do not go short now. the probabilities are stacked against you.

Thu, 08/18/2011 - 16:27 | 1574509 Liquid Courage
Thu, 08/18/2011 - 15:35 | 1574194 Caviar Emptor
Caviar Emptor's picture

But but but.....Canada has very, very oily sands! 

Thu, 08/18/2011 - 15:36 | 1574196 Cheesy Bastard
Cheesy Bastard's picture

 From PIIGS to Canadian bacon in 1 easy step.

Do NOT follow this link or you will be banned from the site!