RE: Cdn Banks So SuperiorUS house prices skyrocketed, yet Canada only "inched" up relatively speaking (except Alberta). US dollar plunged against European currencies. Cdn dollar has made huge gains vs. US dollar.
Bottom line: The US economy does have an obvious impact on Canada, but things are not "lock step" between US and Cdn.
Even if US drops, much of the drop is related to falling housing and overheated activity. We do not have a housing issue in Cdn. The parts most affected by US slowdown is exports to US. We will be hurt with vehicle manufacturing. We will be hit by lumber. But few other items we are affected by US economy. We export lots of nat gas to US, but that's based on heating demand, not the economy. Most of our economy is stable due to rational housing market and exports based on the world economy.
So not only is Cdn economy can cope with US economy on the decline, but Cdn banks can still generate record earnings, while US banks may actually face significantly lower profits going forward.
Already pointed out many factors that will keep Cdn bank earnings strong.