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- Do you think the current status of American banking is a result of weaknesses in the banking system or is it mainly due to wider economic factors?
Both. Personally, I've hated the banking system since I've learned of it's basic functions. It's a very, very, very dumb way of storing money. As far as the business part, it's completely unstable. That said, the collapses were certainly hurried along by economic factors such as the sub-prime debacle.
BTW, have we decided on a name for that yet? I feel like a cartoon villain calling it a debacle. A dastardly debacle!
- Should the American system take a chapter (or far more) out of the Canadian system?
No. Canada is certainly doing a better job, but I still see it as the same basic systemic problems, only in smaller quantities due mainly to increased regulation. Banks should be nationalized and should not make a profit. They should be for storing and accessing your own money, should be 100% backed, and should be paid for in taxes (and judging by Medicare, the administrative costs shouldn't be anywhere near as high as they are in the private sector). If you want to invest money, you should remove your money from your bank and invest it elsewhere. Had we used this model back in the 1920s, we would have avoided the depression almost completely.
- Within such an economic juggernaut as the American economy, why is the American system ranked 40th by the World Economic Forum?
We're getting the blunt of neoliberal consequences.
- If the American system had been akin to the Canadian system, would those 17 banks have failed by this point?
By this point? Probably not. Eventually there would have been problems, though.
- Does this article change your opinion of regulation? How or why not?
Nopers. Regulation is necessary in banking. Always has been, always will be.
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