1-2yr will be above 5% in Sept. hold the line | Page 3 | GIC discussions | Discussion forum

Nehpets said
Does Equity CU accept clients / deposits from "out of town"? Can accounts be set up on the phone / online without an in person visit to the branch?

I tried to phone, but no one answers.....probably siesta time in Ajax!

Stephen  

Go to their web site and apply ...

TommyT said

The U.S. stock market is the most overvalued in all of history including the crash of 1929 and the crash of 1873. No one knows how long the bankers in America can keep this ruse going? Fair market value is about 90 percent lower.  

If you believe that FMV is really 90% lower, then Pension Funds are at serious risk of not being able to pay pensions to retired pensioners - I guess even CPP pensions would also need to be reduced or discontinued at one point.

Saying that markets are 10X overvalued without indicating the data that supports such a statement is meaningless fear-mongering. People used to talk about things like price-to-earnings ratios to support their declarations, that might be helpful.

I do agree a huge crash is coming, most people today (in my view) hate big corporations, profits, capitalism, etc, so they will soon reap precisely what they are sowing. If the collapse involves deflation then savers of cash will be fine for a while, if it's to be inflationary (more likely, imo) then not so good.

Loonie said
what I do know is that we now have "major" corporations "worth" godzillions of dollars that are basically based on ether.  

It would be really informative if you could list say 6 Canadian corporations which you "know" are worth "godzillions" that are based on ether." I am an investor with some equity holdings - I do hold HISAs and some locked-in uncashable GICs.
I would be most interested in the backup for your statement about major corporations based on ether. Perhaps you are more likely parrotting the hype in the news about Facebook, Twitter and the like - I would agree their valuations are not based on traditional inventory, investments and fixed assets but on intangibles; however, even intangible assets may have value.

MG said

canadian.100 said

It would be really informative if you could list say 6 Canadian corporations which you "know" are worth "godzillions" that are based on ether."  

I hate to wade into these types of debates but I will give you one example- Shopify. At one point in the past 12 months, its market cap exceeded the sum of Royal Bank and CIBC combined. And it does not even pay a dividend! Today it is worth 18% of its 52 week high. I would say that former high valuation was based on ether!   

Shopify for sure is a good example. However there are 1500 companies listed on the TSX ......... the OP is implying a fair number of them have valuations based on ether - so I was interested if several could be named in addition to Shopify. I like to know the facts.

I remember reading somewhere that about 90% of S&P 500 valuations is due to intangibles. Maybe that's where this idea that markets are 10X overvalued originates. And maybe some folks consider intangibles (rights, goodwill, copyrights, brand recognition, market dominance/lack of competitors, and so on) to be ether.

savemoresaveoften said

+1
Unless BoC goes 100bps and hints it a few more to come, GIC will remain to be stuck. If there is a significant reduced loan demand, there is zero reason why FIs want to pay up for deposit. Why take it more money than one can lend out...  

For a boring Tues nite post thanksgiving:

Its been 1.5 months since and what I said above remains true....

And the best 1y rate remains under 5% 🙂

Maybe. It depends on consumer loan and mortgage demand at higher rates and how much any one FI needs to attract deposits. Best I can tell, the FIs are already working on thin margins albeit we can't necessarily tell how robust personal (including auto) loans are at the current time. Certainly current mortgage rates are not providing sufficient net interest margin on their own.

There is a common idea – even taught in many economics textbooks and academic papers – that banks are simply middlemen (‘intermediaries’) between savers and borrowers. But this is inaccurate. As the Bank of England describes

27% of bank lending goes to other financial corporations;
50% to mortgages (mainly on existing residential property);
8% to high-cost credit (including overdrafts and credit cards);
15% to non-financial corporates

mortgage only 50%

And what the banks lend to borrowers is money that was previously deposited with them by depositors. That's how banks are intermediaries, between the depositors and borrowers.