Hello Neighbours

Ibnot24get
By Ibnot24get on Sat, Jan 16, 2016 - 10:17am

I'm from up island, [Nanaimo]  I know a few people who are making baby steps here, but there's a long way to go.  To me #1 is promoting local farming.  There's a move afoot here to do a year round farmers market and educational space in one of our parks.  That's a good start.  If anyone has insight into the Canadian banking system vulnerabilities, I'd like to know more.

3 Comments

David Phillips's picture
David Phillips
Status: Silver Member (Offline)
Joined: Oct 29 2009
Posts: 126
Like minded goals at "Living The New Economy" in Victoria

I am an American that migrated to Victoria three years ago.  I feel much saver here in general, considering Canada has the soundest banking system in the world.

 

The biggest threat I see is that Canada joined the other G20 nations agreeing to bail-in if another financial crisis occurs. http://www.globalresearch.ca/new-g20-financial-rules-cyprus-style-bail-ins-to-confiscate-bank-deposits-and-pension-funds/5417351

 

Unfortunately, Canada has already been exploring the idea.  http://www.theglobeandmail.com/report-on-business/ottawa-clears-up-confusion-over-bank-bail-in/article10697667/

 

There are a lot of other things going on trying to accomplish the same sorts of things Chris talks about.  Are you familiar with "Living the New Economy" based out of Victoria?

https://livingtheneweconomy.com/

Ibnot24get's picture
Ibnot24get
Status: Member (Offline)
Joined: Jan 13 2016
Posts: 4
Canadian Bail In

I'd like to know more about that, which institutions are included, and if there are any that aren't, such as credit unions.  We have some allocated PM's in our RRSP, and wonder if they're vulnerable as well.  It would seem any bail-in would have to be for that specific institution and if you're not there, you're not affected.  Maybe I'll get a meeting with the manager of the credit union and see if he's even aware of bail in potential.     

Uncletommy's picture
Uncletommy
Status: Platinum Member (Offline)
Joined: May 3 2014
Posts: 633
All I know is what I read in the, wait, on-line.

This is from the Tyee:

Our Big Five Canadian banks are still handling lots of derivatives. Collectively last year they had total notional derivative bets of $18.6 trillion -- 10 times the entire Canadian economy (GDP $1.82 trillion). RBC stands out for its particularly large derivative holdings, at $7.1 trillion.

If the financial community runs into any kind of a serious problem again -- say, a repeat of 2008 conditions -- the fact that our biggest financial houses are built on such holdings will only raise the risk of a collapse.

The Conservative government has largely shrugged off the danger of a derivative disaster. A Sept. 2013 report from the University of Toronto's G20 Research Group, criticizes the government for failing to carry out reforms that would help protect Canada's financial system against abuses by rogue bankers -- mostly involving derivatives.

Globe and Mail Report on Business journalist David Parkinson echoes the criticism: "When you consider that it was a combination of a largely-unregulated $80-trillion OTC [over the counter] derivatives market and an unsupervised banking industry that brought the global system to the brink of collapse, this is a pretty big deal. Without better oversight, we run the risk that a massive pool of little-understood assets could again blow up in our faces."

 

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