That is the epilogue to the Bank of Canada rates dropping by 0.25% yesterday, so TD again shaves 0.1% more for their pockets, which I guess is to be expected now. The only way that TD might give back that 0.1% is if they find they are losing income from people with loans or lines of Credit taking these vehicles to other banking institutions (any suggestions can be added in my comments, I will investigate and report on them).
Interestingly, TD announced their “prime” to be 4.00% however, their “prime to customers with allegedly prime lines of credit” is 4.35%? Attractive and very annoying. Maybe they’ll change things today. We shall see, I guess.
Bad Day on the Markets
The Canadian Dollar dropped in reaction to the Bank of Canada Rate drop, which is good and bad for Canadians.
- Good because companies that export now have a much cheaper labour force, and thus the price of their products in the U.S. should be cheaper. This is a good thing and was one of the HUGE issues with a very high Canadian Dollar.
- Bad if you import or buy lots of stuff (like stocks) from the U.S.
I believe in a lower Canadian dollar because I have seen jobs move away from Canada simply because of the cost of Canadian workers.
Stocks also took another pummeling, with uncertainty being the continuing theme. I think everyone is looking for some “good news,” and there is some from the company’s quarterly statements, but it is getting lost in the deluge of “doom and gloom” statements from the “Liberal Media” (sorry, I couldn’t resist).
Post Number 1000
Remember, a while back I celebrated with My 1000th Post. Go have a look!