re. "Why Canada's Banks Don't Need Help"
perhaps not yet !
downturns in the U.S. economy have in the past several decades always been felt in canada - but usually delayed by several months and perhaps even a year or two .
with canada - particularly ontario - heavily depending on automobile exports to the U.S. (about 80 % of production going to the U.S. !!!) , things are getting very sour in that industry - and it will be felt throughout canada , i believe .
the canadian auto industry might easily shed up to 100,000 jobs - where those people are going to find jobs , nobody seems to know .
perhaps canadian banks are somewhat more prudent than U.S. banks but they aren't completely shielded from a downturn in the economy .
to use bank of nova scotia as an example :
share price : dec. 2oo5 : $32 , sept. 2007 : $54 , today : $37 , the low was $34 about a month ago .
they are still paying a good dividend : appr. 4% (just received $350 today - it's not a major investment for us - our income is from various government plus employer's pensions) .
of course , i'm hoping that canada will make it through the crisis .
having lived in canada for over 50 years , i remember that canada has been "throught the wringer" before . canada was on the watchlist of the IMF in the 1970 - i'm sure you know what means .
so i hope you'll send good thoughts to canada , robert - just as i send good thoughts towards the U.S. !
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