Currently, TD bank is the second most shorted stock on the TSX. TD relies heavily on mortgage loans for its bottom line, more so than other Canadian banks.
For the first time since 2009, Canadian housing prices dropped in all but 3 areas: Ottawa, Vancouver and Montreal. Given the rapid development going on in Ontario and artificially inflated demand, I fear that a major housing correction is soon to come that will hit Canadian banks especially hard given their exposure to real estate market.
Under the bail-in law, in times of financial turmoil, a bank can withhold its customers assets in exchange for stock in the institution - stock that would be depreciating rapidly. This is absolutely despicable and does not bode well for the future of the Canadian economy.
As someone who has quite a bit of wealth in a Canadian account - what should I do? Move it overseas? Are any other Canadians worried? Thoughts?
Bail ins are the types of things that should start revolutions. If people have their hard earned money taken away and they do nothing, the government will know its citizens area bunch of cucks.
I used to have a large portion of my money in CDs but now I have them in intermediate term US treasury bonds. Dividend returns are almost the same and much safer. If the US government defaults, we're all going to be dead anyway so who cares
William Brown
If you're a citizen there's not much we can do. If you're worried though, just keep your money in physical cash.
Bentley White
Replace physical cash with gold and you might be on to something. The Canadian dollar will shit the bed soon.
Ian Fisher
I have a UK bank account, but I don't have optimism for the UK either.
Evan Kelly
No one said bitcoin? No one said tether? Id just send the bank what you’d need for a month once a month if they’re threatening to fuck me.
Jackson Phillips
>I fear that a major housing correction is soon to come that will hit Canadian banks especially hard given their exposure to real estate market.
Nah, the wagecucks still have their jobs and incomes, so they will get into their cages every day and do the wage shuffle and pay off their loans.
It's when there are large scale layoffs is when you will see GTA real estate imperiled.
what real estate crash? the rich Chinese ppl are buying up all property no matter the price. my uncle sold his condo 80k over asking price
Parker Richardson
Got to keep the housing bubble going.
Isaiah Bell
>Under the bail-in law, in times of financial turmoil, a bank can withhold its customers assets in exchange for stock in the institution - stock that would be depreciating rapidly. This is absolutely despicable and does not bode well for the future of the Canadian economy. from the article: >Deposits under $100,000 appear to be covered by CDIC insurance but anything above, personal or business, will be fair game for the bail-in. That's not really new, if it's not CDIC insured then you shouldn't be keeping it in a bank, if bank goes under that money could have always been gone. Anyone keeping 100k cash in a single type of account with a bank is a moron for not being aware of those risks. >Currently, TD bank is the second most shorted stock on the TSX. I have to wonder if that's because there's so many real estate industry fags that are shorting it as a hedge. Somehow everyone convinced each other housing was a productive asset worth relying a huge part of our economy on. > For the first time since 2009, Canadian housing prices dropped in all but 3 areas: Ottawa, Vancouver and Montreal Average price in my city went from 350k to 500k from 2015-2017, then drops to 490k in 2018. I'm not convinced we're going to crash yet, as much as I'd like to see prices come down to sane levels. >As someone who has quite a bit of wealth in a Canadian account - what should I do? Move it overseas? Are any other Canadians worried? Thoughts? Spread it around a few different banks with 100k in each different types of accounts - chequing, savings, etc. Or just don't keep it in shit tier cash, buy stocks, metal, crypto, anything else.
Angel Johnson
Thanks user. 75% of my life savings are with TD. The assets are insured. I am skeptical as to whether this has merit or not but you have peaked my curiosity. TD has many branches, waterhouse, td investment services, etc. Am i in any serious danger?
Nicholas Collins
Every account is insured for $100k just open up different types of accounts and at types of institutions if you're worried which you shouldn't be you dunce
Brody Garcia
>he thinks the government actually has enough set aside to cover the 100k per account insurance Oh sweetie
Christopher Nelson
I don't think I'm the only one. Why so much short positions on real estate?
Hedging makes sense from RE developers pov.
Gabriel Garcia
Does this apply to smaller credit unions to, or just the major banks?
Josiah Lee
>Believes the bank insurance meme Sorry NPCs your not going to make it
Chase Parker
kek seeing the words "bank" and "insurance" triggered your automated conspiracy/scam npc response.
let me edumacate you, cdic insurance is backed by the federal government, if that gets fucked everyone is fucked if you're worried about that happening you wouldn't hold CAD at all and instead be stocking up on guns and food
Dylan Davis
>dramatically raises your taxes to pay for the “insurance” Nothing personal kid
they charged me over 100$ in fees over 4 months for maintenance once I turned 24, fuck them this makes me smile
Robert Fisher
Let me educate you, you absolute retard! You can check out Canada, BUT here in the UK the fund only has enough for 42,000 accounts @ the max pay out of $85k! The only other way is to print 'money' which will just devalue the currency! Stop being so fucking arrogant! >MUH THE GUBERMENT WILL PROTECT US You have no idea how bad it is!
Jacob Allen
Housing prices dropped in Vancouver also. There are data feeds that show thousands of properties taken down and reposted for lower asking prices. When a home is reposted, the original price is not taken into consideration for "housing prices have dropped". They only check most recent ask VS sale price. Properties are going under assessed.
Move your money to an insured exchange like Interactive Brokers. Or several exchanges if you are worried. Make sure these exchanges allow you to purchase foreign currency and withdraw across borders. If Canada goes to shit, you can try Norbert's Gambit to move your cash to the US or Europe and pay a lawyer to move it to tax havens or something.
Hedge a small amount in crypto and gold.
Never keep more than 100K in a Canadian bank.
Nicholas Sanchez
They would use quantitative easing to produce the money. They would destroy the dollar before they let every pleb lose all confidence in it.
Gabriel Martinez
This is bizarre Jow Forums where people have money. Poor leaf here. I just keep buying land. I don't really use the bank. I grow food, have solar power, and trade with people. Fuck the Jews
Austin Barnes
>Physical cash In a full economic crisis you want precious metals, crypto, food, bullets, land, beanie babies; Anything but paper cash that will depreciate in value infinitely.
Jose Barnes
A new regulation was introduced in Canada on january 1st that might just move all the risk of a housing crash onto the homeowners and reduce the risk for the banks.
Tldr: the official bill “The LTV ratio should be re-calculated upon any refinancing, and whenever deemed prudent, given changes to a borrower’s risk profile or delinquency status, using an appropriate valuation/appraisal methodology.“
How fucking vague is that? “Whenever deemed prudent”?? Basically if the value of your house drops too much, the bank might force you to pay “a second downpayment” in order for your loan-to-value ratio to stay acceptable. Otherwise they take your home and you lose what you’ve put in it so far.
Discuss
Nathaniel Sullivan
I'd be concerned but I've paid off my mortgage. Something definitely worth sharing with parents.
Xavier Walker
Let's hope Vancouver has a housing crash so the chinks lose the most money and we can buy back our land
Caleb Perez
Can you imagine placing the blame on everyone else but yourself for the problems you're facing. Look in the mirror hurrr durrr "it's the chinks fault" because they were smart enough to invest and now they're reaping the rewards from their ingenuity. And this is coming from a person who doesn't particularly care for the Chinese
Andrew Campbell
>smart enough to invest Fuck that they inflated the market just because they're cash parkers, tryna park cash outside China because China is fucked Fuck foreign interests inflating our market, it's OUR market, just give us your manufactured goods and fuck off
Justin Baker
I bet you Canadians will be hurting a lot more than the Chinese if this happens.
Charles Hernandez
i'd say chinese criminal have more dirty money invested in the BC housing market than Canadians, heavily skewed to high priced condos
i'd be pretty happy to see justice
Jose Miller
Duca.com
Julian Peterson
> Are any other Canadians worried?
Yes. They just will not let people make it these days. I know I can't afford a house in the city I live and work in (Toronto) so a lot of my paycheck goes into savings so I can GTFO some day.
They will spin it as "only 1% wealthy people have decent savings, everyone else is paycheck to paycheck", meanwhile they will take my below medium income savings to shore up some overpaid government worker's 2 million dollar 900 sq ft house on Yonge.
>CDIC targets a minimum fund size of 1% of insured deposits
>The ex ante fund stands at over $4 billion and current forecasts indicate that it will reach the minimum target of 1% of insured deposits in 2025
>Current CDIC insurance fund is about ~0.4% of all deposits
>CDIC has two primary funding mechanisms...the second is the ability to borrow from the Government of Canada.
So basically CDIC can only pay for a credit union default, if a big 5 bank gets in trouble they would need to borrow A LOT from the Fed Gov, and Gov will tell them to fuck off and force the banks bail-in depositors. They know somethings coming which is why they made this law.
Samuel Brooks
This is standard practice everywhere in the world you knob. Go look up the FDIC; their fund contains like $25 billion yet they somehow insure $7 trillion. Shit is fucked
Well fuck, maybe hodling silver might pay off. But I guess having gold now is more of a staple than ever before.
Lincoln Powell
Do you know how many empty apartments there are in big cities because the Chinese bought them for the sole purpose of investing? This limits the already limited housing supply and inflates prices for citizens even more. Housing should not be seen as an investment, and foreigners should be banned from being able to buying housing, especially if they never plan to live here. In the event of a crash, foreigners housing should be seized and distributed to rightful citizens. Fuck the Chinese, interesting how Americans aren't allowed to buy property in their country yet our boomer politicians cuck us by allowing them.
Kevin Taylor
The problem with your argument is that you aren't allowed to be retroactively offended by the situation. The inventory was there and someone else bought it. Now you are pissed because you don't have access to said inventory anymore. It's no different from the Seattle, NYC, Boston, or SF/LA locals bitching about property values and inventory. They are mad/jealous that they were either late to the game or didn't get in on it when they had an opportunity.
Matthew Watson
exactly, fuck all non whites.
Adrian Kelly
To everyone recommending crypto as a hedge against an upcoming Canadian housing crash, what hedging benefits does bitcoin offer than fleeing to say, the USD or other stable currencies doesn't?
Samuel Morgan
your safest bet is LINK
Parker Perry
Crypto is not a good hedge against a Canadian housing crash. It's still an extremely speculative asset. It would be a good hedge for a global recession or an economic contraction by the USA
