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Carl Johnson · 11-01-2016, 10:37 PM

Another day, another fear-mongering story. What initially caused the US real estate market to go into a normal correction was rate increases from the Fed which BoC is not considering due to low growth and inflation; however, what really turned a cyclical downturn into a free fall is all the financial derivatives that were purchased by Lehman, Washington Mutual, AIG, Fanny, and Freddie in order to take on a massive bet on the housing market and having those "investments" all go to zero essentially. Canadian Big Five does not remotely engage in any of those activities. Our banks are the most stable and boring in the world. And boring is a good thing.

11-01-2016, 10:37 PM	#8744
Carl Johnson WOAH! i think Vtec just kicked in! Join Date: Oct 2005 Location: Vancouver Posts: 1,650 Thanked 348 Times in 165 Posts Failed 127 Times in 56 Posts	Another day, another fear-mongering story. What initially caused the US real estate market to go into a normal correction was rate increases from the Fed which BoC is not considering due to low growth and inflation; however, what really turned a cyclical downturn into a free fall is all the financial derivatives that were purchased by Lehman, Washington Mutual, AIG, Fanny, and Freddie in order to take on a massive bet on the housing market and having those "investments" all go to zero essentially. Canadian Big Five does not remotely engage in any of those activities. Our banks are the most stable and boring in the world. And boring is a good thing. Last edited by Carl Johnson; 11-01-2016 at 10:45 PM.