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Credit

P

per

Well-known member
Joined
Dec 22, 2007
Messages
6,430
Location
SW Alberta
Could your ranch or farm survive if our credit sources dried up? That very question might need to answered in the near future.
 
per said:
Could your ranch or farm survive if our credit sources dried up? That very question might need to answered in the near future.
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Yep for a year or so if no major disasters came up (like needing to drill new wells or something majorly expensive)...I have almost NO debt- and don't need an operating loan anymore like a lot of places do- trying to work with just cash...

But I do know a lot of folks operating loans that come due in Nov/Dec period (usually when they sell calves)- and in Montana thats when the Property Taxes are also due...These calf prices are going to be disastrous to them if the banks won't work with them... :(
 
Well I don't know why you "socialists" up there in Canada are worrying- according to the news Canada has the strongest rated banking system in the world- compared to the US being ranked 40th...

From what is being seen down here now- IF our economy survives we will see a lot more "socialism" too.... :wink:

Why our banking system is in trouble

Friday, October 10, 2008
This week, the World Economic Forum rated the Canada as having the soundest banking system in the world. The US was rated #40. Even Switzerland, which is known for their banks, ranked #16. According to Canadian Finance Minister Jim Flaherty, "We're a relative rock of stability in this situation, but of course we're vulnerable to spillovers from what's happening elsewhere."

Why is Canada managing to avoid the financial meltdown that is affecting the US, Europe, and much of the rest of the world? Because of "strict regulation". That's right, their government regulates banks much more than most countries. And rather than hurt their economy, it has protected it.

Canada has some of the strictest capitalization requirements in the world — the amount of money a bank has to hang onto to be able to deal with bad loans or other financial problems. Canada has also refused to approve the merger of any of Canada's big banks. And finally, banking regulations kept Canadian banks from catching the fever for subprime mortgages that spread like a plague across the rest of the world.

Compare this to the US, where deregulation, mergers, and subprime mortgages have been all the rage, but are leading to the end of American capitalism.

So the next time someone says that there wasn't anything the government could have done to prevent the current financial crisis, or claims that government regulation of business is always bad, all you have to do is point next door.
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Oldtimer said:
Well I don't know why you "socialists" up there in Canada are worrying- according to the news Canada has the strongest rated banking system in the world- compared to the US being ranked 40th...

From what is being seen down here now- IF our economy survives we will see a lot more "socialism" too.... :wink:

Why our banking system is in trouble

Friday, October 10, 2008
This week, the World Economic Forum rated the Canada as having the soundest banking system in the world. The US was rated #40. Even Switzerland, which is known for their banks, ranked #16. According to Canadian Finance Minister Jim Flaherty, "We're a relative rock of stability in this situation, but of course we're vulnerable to spillovers from what's happening elsewhere."

Why is Canada managing to avoid the financial meltdown that is affecting the US, Europe, and much of the rest of the world? Because of "strict regulation". That's right, their government regulates banks much more than most countries. And rather than hurt their economy, it has protected it.

Canada has some of the strictest capitalization requirements in the world — the amount of money a bank has to hang onto to be able to deal with bad loans or other financial problems. Canada has also refused to approve the merger of any of Canada's big banks. And finally, banking regulations kept Canadian banks from catching the fever for subprime mortgages that spread like a plague across the rest of the world.

Compare this to the US, where deregulation, mergers, and subprime mortgages have been all the rage, but are leading to the end of American capitalism.

So the next time someone says that there wasn't anything the government could have done to prevent the current financial crisis, or claims that government regulation of business is always bad, all you have to do is point next door.
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Gee OT next you will be cheer leading for our Medicare system. :lol:
 
Big Muddy rancher said:
Oldtimer said:
Well I don't know why you "socialists" up there in Canada are worrying- according to the news Canada has the strongest rated banking system in the world- compared to the US being ranked 40th...

From what is being seen down here now- IF our economy survives we will see a lot more "socialism" too.... :wink:

Why our banking system is in trouble

Friday, October 10, 2008
This week, the World Economic Forum rated the Canada as having the soundest banking system in the world. The US was rated #40. Even Switzerland, which is known for their banks, ranked #16. According to Canadian Finance Minister Jim Flaherty, "We're a relative rock of stability in this situation, but of course we're vulnerable to spillovers from what's happening elsewhere."

Why is Canada managing to avoid the financial meltdown that is affecting the US, Europe, and much of the rest of the world? Because of "strict regulation". That's right, their government regulates banks much more than most countries. And rather than hurt their economy, it has protected it.

Canada has some of the strictest capitalization requirements in the world — the amount of money a bank has to hang onto to be able to deal with bad loans or other financial problems. Canada has also refused to approve the merger of any of Canada's big banks. And finally, banking regulations kept Canadian banks from catching the fever for subprime mortgages that spread like a plague across the rest of the world.

Compare this to the US, where deregulation, mergers, and subprime mortgages have been all the rage, but are leading to the end of American capitalism.

So the next time someone says that there wasn't anything the government could have done to prevent the current financial crisis, or claims that government regulation of business is always bad, all you have to do is point next door.
Click to expand...
Click to expand...


Gee OT next you will be cheer leading for our Medicare system. :lol:
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Probably better than ours :shock: :( :( :wink: But we still raise better beef :wink:

That article really surprised me that Canada's banks were thought of as the most solvent in the world...I'd just never thought of them...
 
I spoke with a couple of bankers this week and it is " business as usual" with the exception of HSBC, which has had an international directive of no mortgage lending for about six months now. I do believe our financial system is very sound . With the happenings going on in the US we may well be the least socialist country in North America by the time the smoke clears. The great white north..... strong and free!!!!!
 
It's funny how the government kept our Finance sector regulated, and can plainly see how well that has worked. Yet when it comes to things like the energy sector, where all holds were thrown out the window, and consumers are paying more to heat or light their homes than anytime in history, they think deregulation has worked wonders. The difference is that deregulating energy has raked in billions in royalties and taxes.

'Course on the flipside, they've tried to regulate firearms, and we all know how well that's worked over the course of history, i.e. Adolf Hitler. :roll:
 
Just because they are sound it doesn't mean they are being generous either. They'll tighten up on lending, I'm sure, just because of the general credit atmosphere.

On the other hand, they won't be failing, which is a good thing. 8)

I was watching CNN yesterday and they had a story about how people are so stressed about the financial picture, worrying about losing their homes, savings, and jobs. It sounded so serious. They were giving advice on how to cope with stress, and how to live in such an uncertain atmosphere.

Then I realized that for us, (Canadian cattle producers) this whole crisis other people are finding themselves in is actually what we've come to think of as NORMAL. :shock: :shock: We've been living in exactly this situation for the past five years. So long that we've perfected the coping strategies to the point where we've forgotten what good times are like. Recession? We've been reliving the Great Depression, and we're getting pretty good at it.

Maybe we should hire ourselves out as consultants. :? :?
 
Kato said:
Just because they are sound it doesn't mean they are being generous either. They'll tighten up on lending, I'm sure, just because of the general credit atmosphere.

On the other hand, they won't be failing, which is a good thing. 8)

I was watching CNN yesterday and they had a story about how people are so stressed about the financial picture, worrying about losing their homes, savings, and jobs. It sounded so serious. They were giving advice on how to cope with stress, and how to live in such an uncertain atmosphere.

Then I realized that for us, (Canadian cattle producers) this whole crisis other people are finding themselves in is actually what we've come to think of as NORMAL. :shock: :shock: We've been living in exactly this situation for the past five years. So long that we've perfected the coping strategies to the point where we've forgotten what good times are like. Recession? We've been reliving the Great Depression, and we're getting pretty good at it.

Maybe we should hire ourselves out as consultants. :? :?
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My husband and I had this very conversation just yesterday afternoon. People in this day and age are spoiled and think they "need" a lot of stuff that they don't and can't pay for. I grew up the youngest of 6 kids, and although my Mom is Irish, she has a lot of Scot in her! and my Dad's favourite saying has always been "you can't have champagne tastes on a beer diet"
 
I've always been of the opinion that the best people grow up just a bit hungry. By that I mean that it does a person's development no good if they can just have whatever they want whenever they want it. They don't develop an appreciation for what they do have.

Whenever our boys had something they absolutely had to have, we always made them earn it first, whether by working for it, or saving up. Then when they did get that much wanted item they really took good care of it, and used it well. They appreciated it.

There's a lot to be said for living within your means. It develops character, and it's looking like there's going to be quite a lot of "character development" going on in a lot of places over the next while. After the first painful part is over, it will be a better thing in the long run for everyone.
 
Kato said:
I've always been of the opinion that the best people grow up just a bit hungry. By that I mean that it does a person's development no good if they can just have whatever they want whenever they want it. They don't develop an appreciation for what they do have.

Whenever our boys had something they absolutely had to have, we always made them earn it first, whether by working for it, or saving up. Then when they did get that much wanted item they really took good care of it, and used it well. They appreciated it.

There's a lot to be said for living within your means. It develops character, and it's looking like there's going to be quite a lot of "character development" going on in a lot of places over the next while. After the first painful part is over, it will be a better thing in the long run for everyone.
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I have a SIL and BIL that are severly lacking in the "character" department, life's about to get really real for them shortly!! Thank God for Caller ID!!
 

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