Posts Tagged ‘financial crisis’
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- Bloomberg reports RBC’s Asset Management clients have withdrawn $1.2bn in the past month.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%.
Get ready for an interesting Monday in the world of share prices.
Despite the high hopes attached to the US government’s various bailouts (so far totalling around $1,014,000,000,000, or about $7,546 per taxpayer, as we wrote in a previous article), the world’s markets continue to drop.
Asian markets are uniformly down, and signficantly – here’s a glimpse of Asia’s markets as at 5:50am eastern:
The situation is much the same in Europe. Again, courtesy Yahoo, and also as at 5:50am eastern:
The herd psychology appears to be in full swing, with a wholesale migration out of the markets.
Hold tight for a bumpy ride: the more governments throughout the world bailout failing banks/insurers/etc., the more the taxpayers (read: consumers) get burdened with debt, and the farther away a recovery becomes…
Following on from our article on the real source of the “credit crisis”, we’ve had a ton of requests for the methodology behind our assertion that the average cost to taxpayers of the “bailout” is $5,354. That figure used 2003 IRS data; we’ve since gotten our hands on 2005 data (the IRS isn’t exactly known for their efficiency…), so here it is: a calculation of the impact of the possible range of costs associated with the “bailout”: Read the rest of this entry »