Bank of Canada warning

[Divitias]

They have just issued a strange warning of financial stress to the banking system. Anyone know why?

https://www.google.com/search?client=firefox-b-d&sca_esv=4771c1dce5b9df5f&sca_upv=1&tbs=qdr:w&sxsrf=ADLYWIIPb9G-r_0B3SUicTmKiDdKStV0ow:1715616095120&q=bank+of+canada+system+wide+stress&tbm=vid&source=lnms&prmd=invbmtz&sa=X&ved=2ahUKEwiSpa7__4qGAxU6bPEDHSWiD3kQ0pQJegQIChAB&biw=1520&bih=654&dpr=1.25#fpstate=ive&vld=cid:03864183,vid:NIUNSd89v-I,st:0

[WendyBG]

I don’t know whether he was referring to Canada alone or the entire financial system which could include the U.S. Certainly, valuations are stretched in the U.S. also. I also don’t know whether he was talking about tremors in the system or if this was purely a warning about future possible problems.

Currently, financial stress in the U.S. system is currently very low. I look at this every week in the Control Panel since it’s a sensitive indicator of problems and a rare but red-light-flashing indicator of financial crisis.

St. Louis Fed Financial Stress Index

Wendy

[Divitias]

@WendyBG

I don’t know whether he was referring to Canada alone or the entire financial system which could include the U.S. Certainly, valuations are stretched in the U.S. also. I also don’t know whether he was talking about tremors in the system or if this was purely a warning about future possible problems.

I found it a bit weird. He just pop up out of nowhere sounding like Peter Schiff, and then vanished without giving any details or reasoning to what he was saying.

I couldn’t find anything else about this warning and wondered if anyone else had anything on it.