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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: abuelita who wrote (15402)	3/15/2007 10:50:02 AM
From: TobagoJack	Read Replies (4) \| Respond to of 217927

give it time, when usa banks go, so goes the counterparties, and the counterparties of counterparties like a sexually transmitted disease, it is viral

To: abuelita who wrote (15402)	3/15/2007 2:38:04 PM
From: energyplay	Read Replies (3) \| Respond to of 217927

There is a decent chance that Canadian banks will feel only indirect effects from sub-prime. Because of currency risk, especially of the Canadian dollar becoming stronger, I expect that US mortgage CDOs are only a small part of the Canadian banks' assets. Second, lots of money is being made from the resource sectors, enough to cover over all but the largest screw-ups. Third, high immigration into Canada will tend to absorb any housing surplus. The sharp decline of the North American auto industry will be a big hit to Ontario, but that's another issue.

To: abuelita who wrote (15402)	3/16/2007 1:48:41 PM
From: energyplay	Read Replies (1) \| Respond to of 217927

Re: Auto industry in the US and Canada - I should point out the problems of the auto industry in Michighan and nearby parts of Canada is causing housing prices to drop rapidly, and late payments to soar. This is not a sub-prime problem, this is hitting prime borrowers - almsot everyone across the board. One of the reasons this economic bust may be contained to Michighan and nearby areas is the big agricultural boom, lead by corn for ethanol. As we get to higher latitudes, such as northern Michighan, northern Wisconsin and Canada, there is generally less corn grown than say southern Illinois. The general rise in agricultural prices will provide some help for the northern areas, but not the corn boom other places are experiencing. The auto industry bust could cause a breach in the wall around sub-prime problems. I would not expect any problems to be able to spread west, Alberta and BC should do fine. That may cause an interesting problem for Canadian economic policy, with Alberta red hot and Ontario getting dragged down.