Just so you know, Canada’s banks are in fine shape. Not the sort of ‘fine shape’ that US banks were in last year, but real, honest to goodness fine shape. But just in case, Ottawa is considering options to aid Canadian banks if the current global economic crisis persists.
And news from around the globe hasn’t been real great lately. A number of large US banks have failed, a record setting US bailout bill has been passed and the US government is now considering taking an ownership stake in banks (because what restores confidence more than government ownership?).
Meanwhile in the UK, they’ve already taken the step of partially nationalizing their banking system. The fallout from the global credit boom is turning bust in a bad way, look at whats happening in Iceland for just one example. The IMF has just announced the activation of an emergency funding scheme that was last used during the 1995 Asian economic crisis.
From previous discussion on this site I know that many of you are sitting on a cushion of cash, some above the $100k CDIC insured limit. Are you worried about the health of the Canadian economy and our banking system? Do you understand the ins and outs of CDIC insurance? Are you making any changes to your banking habits to prepare for possible problems?