Saturday, August 20, 2011

Sat Post #3: Zero Hedge sparks a debate on Canadian Banks (updated 2)

It would be almost amusing if it weren't such a serious issue.

Thursday we referenced a post on Zero Hedge about Canada's Banks and their Tangible Common Equity (TCE).

This morning we covered an editorial by the Globe and Mail  on the Zero Hedge post (as well as pointing out that Sprott Asset Management made similar points in a 2009 report).

Even Garth Turner joined the Zero Hedge pile on.

Apparently the Globe and Mail made two editorials on the Zero Hedge post... and now Zero Hedge responds.

More as we come across it.  If you see any other articles out there on the Zero Hedge post about Canadian TCE, email them or post links in the comments section.


Canada's Business News Network (BNN) discussed the Zero Hedge post here.

Financial Post: Swap market says Canadian banks super safe (hat tip: rumbleguts)

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  1. "Banks do not create money. Myth, fantasy, fallacy. — Garth"
    In the same blog post Garth Turner refused to even acknowledge that Canadian banks held derivatives.

  2. Garth is right about a lot of things, but I find him to be your typical "business as usual" politician.

  3. Yes, "business as usual" is a good description of Garth's economic/financial analysis, which is why he overlooks so much of what is happening today. I find that many of his arguments are presented with no evidence, while he demands it from his his bloggers. For example he says, there will be no return to the 2008 crisis, with no evidence or analysis.
    If one looks at what is happening right now economically in the western countries, Garth Turner looks like the Greater Fool. In addition , he has been totally wrong, while trashing precious metals for years.

  4. GT works within the financial "system" so it is in his best interest to promote and protect it.

  5. "GT works within the financial "system" so it is in his best interest to promote and protect it."
    Exactly, and this is why his interests are not mine. All my favorite financial analysts are in complete disagreement with Garth Turner, except on Canadian Real Estate. As the current financial system continues to breakdown and traditional investing becomes a losers game, Garth Turner looks more and more like his "Greater Fool".

  6. Garth is just doing business, selling his consulting services and his books. For him to acknowledge the reality around us would cost him money--he can't make a penny advising people to buy and hold physical metals, or to flee equities and bonds.

  7. Garth is just doing business,

    Totally agree. He is just maintaining a conservative line to not look to radical . I enjoy reading his blog but at the end of the day I make my own choices.