Juggling Dynamite

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.

I like wine and appreciate the labor that goes into making it. But years ago, I participated in a blind taste test that confirmed I could not discern a $12 bottle from a $1000 bottle. That revelation was a gift. The characters and behaviors highlighted in this CBC segment are the same in the world of wine as in other areas. Fools and their money are soon parted. Here is a direct audio link.

Danielle was a guest with Jim Goddard on Talk Digital Network, talking about recent developments in the world economy and markets.  You can listen to an audio clip of the segment here.

There is a reason that corporate executives have aggressively lobbied governments and regulators to not implement Section 953(b) of the Dodd-Frank Act, which is to take effect in January requiring firms to disclose the ratio of the CEO’s compensation to the median pay of company employees. Because at 300x the average workers pay (thanks to stock option bonus structures), the stats are grotesque, indefensible and embarrassing for all concerned.  This graph says it all.  That flat line along the bottom is typical worker pay.