I had a conversation with an old friend last night. He said his mutual fund investments at CIBC were down about 60% on the year. But at least the principle on them is guarranteed.

Is this the next big blowup? Why Canadian banks are going to the market for more capital? Are guarranteed investments the next weapon of mass destruction? How many faithful investors have been spending an extra 1-2% on their portfolio thinking their investments are absolutely safe? At one point, I had a guarranteed mutual fund myself. If the market goes into a prolonged depression, and most of the stocks never do recover all of the market cap they are losing, won't the banks be squeezed badly on these?

MR