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The Great Solvent North (Canadian banks "soundest in the world")
NY Times ^ | Published: February 27, 2009 | THERESA TEDESCO

Posted on 03/02/2009 4:17:10 AM PST by dennisw

Edited on 03/02/2009 4:46:49 AM PST by Admin Moderator. [history]

HAS the world turned upside down? America, the capital of capitalism, is pondering nationalizing a handful of banks. Meanwhile, Canada, whose banking system had long been notorious for its stodgy practices and government coddling, is now being celebrated for those very qualities.


(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Editorial; Foreign Affairs; News/Current Events
KEYWORDS: opinion

1 posted on 03/02/2009 4:17:10 AM PST by dennisw
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To: dennisw

Canada is too socialist for me but they got the banking part right. Our bankers and Wall Street’s investment bankers simply cannot be trusted with large sums of money. Greed takes over and they run wild. Dragging down our economy and being bailed out because they are too big to fail

During the Great Depression there were no failures of Canadian banks


2 posted on 03/02/2009 4:20:53 AM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
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To: Candor7

ping pong


3 posted on 03/02/2009 4:24:56 AM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
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To: dennisw

IF the Canadian banks were forced to give out bad mortgages under threat of penalties, would they be in such good shape?

Perhaps there’s more involved than this opinion piece is stating.


4 posted on 03/02/2009 4:24:59 AM PST by Gondring (Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
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To: Gondring

Excellent point. Maybe we can send Frank, Dodd, Pelosi et. al. up there?


5 posted on 03/02/2009 4:29:12 AM PST by tgusa (Gun control: deep breath, sight alignment, squeeze the trigger ....)
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To: Gondring
IF the Canadian banks were forced to give out bad mortgages under threat of penalties, would they be in such good shape?

I guess they are just a bunch of hard hearted socialists up there plus no minorities to speak of to ladle out affirmative action mortgages to

But Lehman was leveraged at 30-to-1 as it packaged CMOs at breakneck speed. No Canadian bank was allowed this kind of leverage. An easy bet is they didn't get involved much in derivatives and credit default swaps either

6 posted on 03/02/2009 4:30:14 AM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
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To: tgusa
Excellent point. Maybe we can send Frank, Dodd, Pelosi et. al. up there?

Maybe we can send them to jail where they belong.

7 posted on 03/02/2009 4:32:47 AM PST by Sal (The Mr. Cool mask has slipped and exposed the naked face of the Chicago Street Thug.)
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To: dennisw
The Canadian government screwed up their healthcare system, our government screwed up our banking system, and is about to kill healthcare.

Both Canada and the US would be much better off with free-market versions of these institutions.

This is America for crying out loud.

8 posted on 03/02/2009 4:51:57 AM PST by ROCKLOBSTER (RATs...nothing more than Bald Haired Hippies!)
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To: Toddsterpatriot; Mase; expat_panama; LowCountryJoe

This is an interesting column, once you get past the author’s premise that more (Canadian-type) federal regulation would’ve saved American banks from the subprime debacle. “What do you call assassins who accuse assassins?” (Colonel Kurtz).


9 posted on 03/02/2009 5:35:42 AM PST by 1rudeboy
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To: 1rudeboy

They don’t need mortgages on igloos and log cabins.


10 posted on 03/02/2009 5:40:55 AM PST by Toddsterpatriot (Havoc has been back since September. Or was it April?)
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To: fanfan

For your list.


11 posted on 03/02/2009 5:42:29 AM PST by 1rudeboy
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To: Toddsterpatriot

Talk like that would get a stubby bounced off your head back in my college days.


12 posted on 03/02/2009 5:43:37 AM PST by 1rudeboy
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To: dennisw

Canada is said to have a small number of large banks. Quite the opposite, in the USA, it is our small and medium banks which are strongest. A regional bank in our area, M&T bank, actually just reported a profit increase for 2008

Our large banks, who work hand-in-hand with the Fed and Gov’t already, are subject to strong political pressure already, as the recent crisis shows. I am sure that is something the NY Times article neglects to mention about Canadian banks.


13 posted on 03/02/2009 5:44:33 AM PST by PGR88
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To: 1rudeboy

Yeah, bunch of hosers.


14 posted on 03/02/2009 5:47:17 AM PST by Toddsterpatriot (Havoc has been back since September. Or was it April?)
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To: dennisw; 1rudeboy; GMMAC; Clive; exg; kanawa; backhoe; -YYZ-; Former Proud Canadian; Squawk 8888; ..
Thanks for the ping, 1 rude boy.


15 posted on 03/02/2009 6:13:09 AM PST by fanfan (God, Bless America, please.)
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To: Toddsterpatriot

LOL.


16 posted on 03/02/2009 6:18:51 AM PST by fanfan (God, Bless America, please.)
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To: dennisw
Don't be such a myopic rube.

A small handful of banks in the US who WERE being ruined by government policies that encouraged wrecklessness. 'Greed' had nothing to do with it.

Further, no bank is 'too big to fail' (or go into receivership). That is a political decision made by politicians the foolish electorate has chosen.

MOST banks in the US are doing pretty well and it's up to you to keep an eye on your bank and not just put the blinders on.

17 posted on 03/02/2009 8:13:01 AM PST by mbraynard (You are the Republican Party. See you at the precinct meeting.)
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To: Gondring

That’s a very good point but the banks in Europe and Asia got into trouble because they bought too much American sub-prime paper. The Canadian banks were also hit by that but their exposure was a lot lower, IOW they didn’t gamble more than they could afford to lose.


18 posted on 03/02/2009 8:14:37 AM PST by Squawk 8888 (TSA and DHS are jobs programs for people who are not smart enough to flip burgers)
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To: Squawk 8888

Right.
They were more conservative. Not faux-conservative.


19 posted on 03/02/2009 8:17:00 AM PST by Gondring (Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
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To: mbraynard

I prefer the Canadian way of banking any day. I don’t see any derivatives or CMOs up there. If they have them then it is very small


20 posted on 03/02/2009 8:21:17 AM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
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To: dennisw
You know what you are talking about.

Not only do Canadian banks own and handle derivatives and CMOs, they and almost all other banks are required to use derivatives in order to attain stability.

Yes, see, like HANDGUNS, derivatives can be a great tool to balance risk. And like HANDGUNS, they can be mismanaged.

What it comes down to is whether or not you support economic freedom or the inane notion that, somehow, a politically-driven federal agency can better manage a market than the people who work and invest in it.

HINT: it was politically-driven federal interference that caused the problem we face now. Effing LEARN something once in a while, k?

21 posted on 03/02/2009 9:06:37 AM PST by mbraynard (You are the Republican Party. See you at the precinct meeting.)
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To: dennisw

Actually - that’s “you don’t know what you’re talking about” as the first line. Typo.


22 posted on 03/02/2009 9:08:00 AM PST by mbraynard (You are the Republican Party. See you at the precinct meeting.)
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To: dennisw
>>>>Canada is too socialist for me but they got the banking part right. Our bankers and Wall Street’s investment bankers simply cannot be trusted with large sums of money. Greed takes over and they run wild. Dragging down our economy and being bailed out because they are too big to fail

Yes, you are exactly right.

23 posted on 03/02/2009 10:49:40 AM PST by Thorin ("I won't be reconstructed, and I do not give a damn.")
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To: 1rudeboy
Every so often I run into someone here in Panama who says that they have a relative that lives in the US and they ask if I know them --they can't imagine how much the US is bigger than Panama.  Same with Canadians.  

Canada has a little more than a 10th of our population and it's economy is a little less than a 10th.  Their wanting to tell us how to run our economy is like some kid on a tricycle trying to tell a pilot how to fly an airplane.

24 posted on 03/02/2009 11:24:40 AM PST by expat_panama
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To: dennisw
Canada is too socialist for me.......

Americans just elected the great socialist as President and a congress that Stalin could have worked with. They are redistributing the wealth of America and setting in place the bankrupcy of the nation for the next 50 years and going to send corporations fleeing from the US, while working to silence conservatives and fix the next election....and you say Canada is too socialist? Glass houses, dennisw!

See you in the bread line comrade.

25 posted on 03/02/2009 11:26:47 AM PST by free_life (If you ask Jesus to forgive you and to save you, He will.)
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To: mbraynard
Not only do Canadian banks own and handle derivatives and CMOs, they and almost all other banks are required to use derivatives in order to attain stability.

Then they din't go crazy with them the way AIG did, the way Wall Street did the way our bankers did
And due to the Canadian system they couldn't even if they wanted to

Kind of amusing to see your phony libertarian flailing against what this article calls the "soundest banking system in the world"   Knock yourself out buddy!

Oh...and your tax dollars are paying AIG another 30 billion today because if AIG goes down it will drag down others due to their involvement with AIG credit default swaps

26 posted on 03/02/2009 1:39:38 PM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
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To: Thorin

Thanks I am paleo same as you. Somehow for years and years the USA got along just fine without derivatives


27 posted on 03/02/2009 1:44:34 PM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
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To: LucyT

Ping Piggy Bank


28 posted on 03/02/2009 8:01:25 PM PST by Candor7 (Fascism? All it takes is for good men to say nothing, ( member NRA)
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To: dennisw

Thanks for the Ping Dennis


29 posted on 03/02/2009 8:02:16 PM PST by Candor7 (Fascism? All it takes is for good men to say nothing, ( member NRA)
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To: Candor7

Canada -— your second home :)


30 posted on 03/02/2009 11:45:29 PM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
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To: dennisw

Soon to be first the way things are going.


31 posted on 03/02/2009 11:52:28 PM PST by Candor7 (Fascism? All it takes is for good men to say nothing, ( member NRA)
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To: Candor7

One good thing about the cold weather... It keeps out the riff raff


32 posted on 03/03/2009 12:07:10 AM PST by dennisw (Archimedes--- Give me a place to stand, and I will move the Earth)
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To: dennisw
One good thing about the cld, But then why should I not move to Victoria BC?LOL.

I think the time is coming to move back home to my native Saint John River Valley in New Brunswick.

Things appear to be heading for the nasty side of crazy here.

33 posted on 03/03/2009 12:17:33 AM PST by Candor7 (Fascism? All it takes is for good men to say nothing, ( member NRA)
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To: dennisw

If Obama continues on his course unchecked, it is possible that Canada could surpass the USA before too long.


34 posted on 03/03/2009 7:28:16 PM PST by Grig ( Obama will do for socialism what Clinton did for porn)
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