RE:RE:What Does the Bank of Canada Do? It's going to get ugly in Canada this year. We are only about halfway through the mortgage rollovers and about 100k homes refinancing per month. If homes decrease any further, the banks will have to set aside much more in provisions for credit losses. What will happen if unemployment rises significantly over the next 1-2 years?
You couldn't pay me to own a Canadian bank when you can simply collect a risk free rate above 5% without worrying about stock prices.