the LYNCH report

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Canada Gets Into the Act: Injects $20bn Into Economy…

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There hasn’t been much news from Canada in light of the global financial crisis, or at least not much widely-reported news.

In fact, Canada’s banking sector is hardly immune to the global credit tightening and the sub-prime-triggered crisis.

Here, then, is an overview of recent events in Canada:

  • The TSX’s S&P Index is down over 10% in just four days.
  • Bloomberg reports RBC’s Asset Management clients have withdrawn $1.2bn in the past month.
  • Also from Bloomberg, TD saw $1.15bn redeemed in September.
  • The Bank of Canada has injected $20bn into money markets to ease liquidity concerns among Canada’s banks.
  • The Bank of Canada has also agreed to accept ABCPs – the Asset Backed Commercial Paper at the heart of the crisis – as collateral on a temporary basis.
  • The average price of a home in Toronto dropped 6% in September, while the number of sales are down 11%, according to a report in the National Post. The number of homes listed for sale is up 19%.
  • In Vancouver, meanwhile, the number of home sales declined a whopping 42.9% in September, versus a year ago, according to a report on CBC.
  • The number of new Vancouver listings rose 28.8%.
  • The “benchmark” price of a detached home has falled 5.8% since May in Vancouver, while the “benchmark” price of a condo fell 5.2%.

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