Originally Posted By: Derid


Canada not having a meltdown has to do with a few things, and wouldnt not have been likely to have had one regardless of regulation or lack thereof.


I disagree. Canadian banking regulation is the only thing that delayed (there is still a chance that housing market might implode in Canada and cause lots of hurt in financial sector) or prevented repeat of US situation. Unlike some European banks that jumped on US derivatives bandwagon and also had to get bailed out by European governments, Canadian banks were simply not allowed to get involved in such non-banking activity.

If you want to point fault in Canadian banking and banking regulatory system you need to look at costs. It is significantly more expensive to bank in Canada. At this point it appears that these costs are justified.

[Linked Image]