Thursday, November 05, 2009

Should you really be banking with CIBC?

CBC reports that CIBC is calling for the Bank of Canada to purchase American dollars to prop up the U.S currency ... From the article:

`In a report released Tuesday, Avery Shenfeld of CIBC World Markets said the central bank should intervene to keep the exchange rate stable and to protect Canadian manufacturers.

"Canada could consider what might be called a bounded float," Shenfeld said.

He recommended the central bank buy U.S. dollars during times when speculation is causing a sharp rise in the loonie's value.

"By intervening only at extremes, the central bank could help chase away speculative flows that take the currency, in its considered judgment, beyond fundamentally driven levels."

Shenfeld told the CBC's The Lang and O'Leary Exchange, that essentially, the central bank should step into the market to sell Canadian dollars in exchange for U.S. dollars to try to weaken the loonie by a few cents'
I'm sorry, is this the same CIBC out in front of the other Canadian banks, that was hit with a U.S subprime mortgage write-off of THREE BILLION DOLLARS? What the hell?

If you think theres value in the American dollar, great, but to buy the currency of another nation to devalue your own.. what the hell sort of economic premise is that?

Are we forever doomed to be America's bitch? They can continue to act in unhealthy economic ways, and since we're so tightly connected to that behemoth, whatever happens we'll be dragged down kicking and screaming with them?

The same CIBC that wanted to merge with TD in 2006, luckily the Liberals said hell no to that.

Sometimes the Canadian government should ignore these people. Especially if their track record is not so stellar.

Let our dollars value fluctuate. Honestly, intervening in foreign markets. What the hell, man.

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