Friday, November 20, 2009

... And The Continuing Blackmail Con Game Keeps On Going!

Read it and weep, folks:

Banking, pt 3 of 4: Show us the money

Starting next week, Canada’s big banks will report multibillion-dollar annual profits that are among their best ever.

It comes against the backdrop of a Canadian economy that has just experienced one of the worst 12-month stretches in its history. But while credit quality has been under stress from the aftermath of the global credit crisis, the banks are expected to add only modest growth in provisions for bad loans.

Analysts say strong capital-markets profits, rising net interest margins and even some domestic loan growth will likely more than offset any damage from expected defaults.

According to analysts’ estimates, the big six Canadian banks will report net earnings for fiscal 2009 of about $15-billion, slightly behind the record haul they reported in fiscal 2007.

(...) UBS analyst Peter Rozenberg predicts the main issue for the banks over the next few years will be what to do with the heap of excess capital they are sitting on, predicting it will grow to $40-billion by 2012.

The money will likely be used to “drive acquisitions, dividends and buy backs, however, we expect banks to remain cautions in the short term due to continued economic and regulatory risk,” he said in a note to clients on Thursday.
I have an idea about what the Canadian banks can do with the "heap of excess capital they are sitting on" - how about: A) reimburse the bank welfare bailout monies they received from the Harper government; and B) further free credit from the current, persisting crunch, for small businesses and individuals (as the were supposed to do in the first place with the bailout monies, instead of using these as capital for their own greedy use).

And on a related note:
Recession or not, Canada's rich keep getting richer

It takes money to make money -- especially in a recession, according to the Canadian Business 2009 list of the richest Canadians. It shows that the rich kept getting richer despite the economic downturn that has cost 400,000 Canadians their jobs in the past year.
Robber class indeed.

Meanwhile ...

Conclusion: the continuing blackmail con game still keeps on going - and so I reiterate:
We must be lu-uving this game a whole damn lot, considering that we keep on playing it again and again and again - just like gambling addicts that keep on playing the roulette in casinos, thinking that this time, they'll hit paydirt.

At least, casinos dish out complimentary drinks and snacks ...
Bartender? Where's my drink already?

(see also pogge)

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