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rightmindedBen t1_iyb435s wrote

Don’t worry it’s your money not theirs…

103

brash2019 t1_iyb9c9s wrote

The money was recently seen vacationing in Panama and the Cayman Islands.

102

soolkyut t1_iyb9utw wrote

It’s not a business. I’m not sure what this means

30

Anonymoustard t1_iyb9zvl wrote

Lost? It's always in the last place you look.

27

008Zulu t1_iybbwgb wrote

Coming right after the recent crypto "downturn". Interesting coincidence?

−22

WanderingPickles t1_iybcl2l wrote

Replying to soolkyut (#789,523)

So, the bank (BOC) owns assets upon which it gains income. Things like Canadian government bonds (when the government runs a deficit, it issues bonds and the bank buys them up) pay a fixed percentage yield. Other bonds held by the bank also pay a set rate of return.

So that is the positive revenue side of bank. Money coming in.

The other side are things that the bank has to pay out on. Apart from the typical things like salary, utilities, paper, etc. the bank has to pay interest on the funds deposited in its coffers.

For example, if Royal Bank of Canada (RBC) deposits its own funds into the BOC then the BOC owes interest to the customer. Just like how when you deposit funds I to your savings account and the bank pays you interest. They pay you for holding your money.

With the rise in interest rates, the amount owed on those deposits has increased. At the same time, the interest on the bonds BOC holds remain the same. Think of it like your salary remains the same but the interest rate on your credit card radically increases and now what was a $100/month bill is $200. The extra $100 pushes you into the red and, as a result, you have to draw on your savings in order to pay the bill.

That is, in a brief nutshell, what is happening to the BOC right now.

115

wobbly-cheese t1_iybff4w wrote

lets not forget the liberals skimming off the top to buy votes and pay friends

−69

WynterYoung t1_iyc0ah7 wrote

Replying to MrFuzzyPaw (#796,661)

I got a car and I'm not afraid to use it! Lol(side not though: I actually like geese. My mom and I used to save the geese in our area when they had broken wings and stuff cause of the traffic in our area).

4

Thrakk223 t1_iyc7a2s wrote

Eternal growth surely isn't sustainable long term, if this is the first time they've ever seen a loss then isn't this fairly normal?

3

MrWeirdoFace t1_iyce8yv wrote

Somebody check under the couch cushions?

0

Efficient-Ad-3302 t1_iychmxe wrote

What happened to all the “profits” from the oil industry boosting gas prices?

−1

Al3rtROFL t1_iychpq2 wrote

This is from Elon Musk. Just him.

−6

syahir77 t1_iycx27b wrote

Lost into their shareholders.

−1

Actual__Wizard t1_iye0u3y wrote

Pff. A $522 million loss is nothing. Daddy Elon loses more then that daily.

1