Quote:
Originally Posted by aceventura3
This is not correct. You don't cite a source so I don't know where to begin in terms of countering this claim. One thing you can help with is to specify what deregulation you refer to.
-----Added 10/12/2008 at 01 : 23 : 40-----
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What is not correct? That US banks fail and Canadian banks don't? I assure you, it is 100% correct. The US system has banks failing regularly - even outside of this latest crisis which has claimed big name victims (remember your Savings and Loan problems of a few years ago?) - and in Canada, we have a much smaller number of banks which are tightly regulated and insulated against risk and are much, much less vulnerable to failure.
The US banking system allowed ridiculous risks to be taken with mortgages. Those risks are simply not allowed to be taken here due to various regulations (although because all large corporations invest abroad in a variety of paper backed assets, we suffered a smaller exposure to the problem in another way).
Don't let capitalist or libertarian or whatever dogma interfere with reality. When it comes to safeguarding people's money, when it comes to making sure people - whether good or bad, well meaning or bad intentioned - keep other people's money safe, a bit of regulation lends a lot more protection.
As to the deregulation (although it was not something I said specifically - I was comparing the banking habits of the two nations), others such as dc dux have already addressed this issue.