Before Shorting Canadian Banks

Canadian Banks – What are we taking about?

• Canada = 35M people.
• 1.2% annum stable population growth since 1972
• (Toronto 2.6/5.6) (Montreal 1.6/3.8) (Vancouver .6/2.3) (Calgary 1.0/1.2)(Edmonton .8/1.1) (Ottawa .8/1.2) (Everywhere else 20M)
• Destination for people and money. 280,681 immigrants in 2010
• Imagine California with only 5 firms in loans, banking, brokerage
• Those 5 banks are all Toronto HQs. A town with terrible commutes
• Bank stocks are an important cornerstone for Canadian investors

Canadian Banks – What the Shorts see

• PICTURE – STBANKX exposed to consumer debt levels equal to US consumer levels in 2007. And housing bubble too boot!
• THE BET – Housing rolls over. ERGO banks will beholding underwater mortgages and consumer debts gone bad. ERGO banks I-statement losses &...