[quote="manualman, post:6, topic:203469"]
The problem with all the fawning adulation on Canada's banks right now is that is misses half the picture. Lending practices must tread a tightrope. Be too tough on who you lend to and you will throttle the economy down and prevent the creation of wealth. Be too loose with the money and THIS bubble burst economy happens.
Canada accidentally exploited the system and got the best of both worlds for a time based on OUR mistakes. Their own banks focused on safe lending at modest returns due to their lending laws. The more high risk businesses had access to US investment capital right next door. So the risky stuff they funded with other people's money and the safe stuff they funded with their own.
What all the adulation of Canada right now ignores is that approach doesn't work if you don't have a rich and careless uncle willing to fund your riskier investments. If the USA goes extremely conservative on lending standards (we're not just talking mortgages here folks), we risk overcompensating and unnecessarily slowing our economic recovery.
Too bad I'm not smart enough to know where the ideal level of risk/reward is. Who IS?
Excuse me but what you've said is 99% bunkum.Canada has always had tight reins on lending especially mortgages.You must PROVE that you are able to repay your mortgage principle and interest.While it is common practise in the US to refinance to buy cars and other goodies and make no real attempt to pay down your mortgage because of mortgage interest deductability from taxes the opposite is true in Canada.We cannot deduct mortgage interest from our taxes so we pay the principal down ASAP.
As far as "our rich uncle" willing to underwrite our riskier adventures that is plain fantasyAn outrageous statement based solely on envy.Canada is the number one leader in fiscal growth of all g8 nations.We have been diligently paying down our debt for the past 25 years while the US spending has been profligate and irresponsible.
Our economy is sound in spite of a world wide recession,simply because government oversight prevented the cowboys of Bay street to immitate the unconscionable greedheadedness of the cowboys of Wall street.
You folk are drowning in debt because your politicians lack the courage to raise your taxes and reduce services.Corporate welfare is profligate in the US-look at your bankers who sucked billions from the taxpayer while paying themselves outrageous bonuses.
Canada is where it is because of fiscal responsibility-to suggest that America is somehow responsible is chutzpah beyond belief.Your government has tried to thwart the FTA at every turn.Denying Canadian softwood lumber to your markets because your own forest industry is archaic,which in turn has driven up the cost of new house construction to Joe American.But that doesn't really matter because there is a fire sale in housing in the US.I've heard that in some cities one out of every four homes is in receivership which makes the homes near it worthless..,
Canada is completely self-sufficient in energy,agriculture,mineral development,top flight tech industries.Our entrepreneurial sector is beyond compare and American Scientists are being lured North of the border in ever increasing numbers by generous grants and carte blanche operations.
"".What all the adulation of Canada right now ignores is that approach doesn't work if you don't have a rich and careless uncle willing to fund your riskier investments'"This is such a mean spirited statement that it is utterly beneath my contempt.However it is so outrageous that it demands outrageous proof.PROVE IT!!!!I'll be waiting right here and I'll keep reminding you.I can hardly wait to see what laughable proof you'll offer.
Canada is the envy of the G8 because of hard work and fiscally prudent governments and stringent banking regulations.Oh and by the way Canada owns 1/3 of the worlds water supply-the next "oil" and we have much more crude than Saudi Arabia and excellent universal health care that does not bankrupt neither employer nor employee so we are even MORE competitive and by the way we live 2.5 years longer than you do too
Sorry to be so triumphalistic but when I see some of the fairytales,lies and misinformation about my country on this forum I see red,and while we Canadians are renowned for our politeness never mistake that for weakness.
Manualman you really should read more about your friendly neighbour to the North.:cool: