Canadian banks are attempting to whistle past the graveyard of rising loan defaults even as they lower loan loss reserves to boast near term earnings. Safalow summarizes facts well in this clip. Here is a link to the investigative reporting piece done on Home Capital (that Safalow refers to). Worthwhile read.
Bradley Safalow, Founder and CEO at PAA Research joins BNN for a look at why he’s bearish on Home cCpital Group.Here is a direct video link.
And this chart of Canadian bank shares (TSX far right) year to date change relative to the banking industry in other major economies is worthy of reflection. Are Canadian banks miracle workers or just lagging in the credit bubble correction cycle? Hmmmm.
;
