capricorn Posted February 9, 2009 Report Posted February 9, 2009 In a Newsweek article, Fareed Zakaria explores Canada's common sense approach which has positioned the country favourably to weather the financial crisis. Guess which country, alone in the industrialized world, has not faced a single bank failure, calls for bailouts or government intervention in the financial or mortgage sectors. Yup, it's Canada. In 2008, the World Economic Forum ranked Canada's banking system the healthiest in the world. America's ranked 40th, Britain's 44th.Canada has done more than survive this financial crisis. The country is positively thriving in it. Canadian banks are well capitalized and poised to take advantage of opportunities that American and European banks cannot seize. The Toronto Dominion Bank, for example, was the 15th-largest bank in North America one year ago. Now it is the fifth-largest. It hasn't grown in size; the others have all shrunk. So what accounts for the genius of the Canadians? Common sense. Over the past 15 years, as the United States and Europe loosened regulations on their financial industries, the Canadians refused to follow suit, seeing the old rules as useful shock absorbers. Canadian banks are typically leveraged at 18 to 1—compared with U.S. banks at 26 to 1 and European banks at a frightening 61 to 1. Partly this reflects Canada's more risk-averse business culture, but it is also a product of old-fashioned rules on banking. Canada has also been shielded from the worst aspects of this crisis because its housing prices have not fluctuated as wildly as those in the United States. Home prices are down 25 percent in the United States, but only half as much in Canada. Why? Well, the Canadian tax code does not provide the massive incentive for overconsumption that the U.S. code does: interest on your mortgage isn't deductible up north. In addition, home loans in the United States are "non-recourse," which basically means that if you go belly up on a bad mortgage, it's mostly the bank's problem. In Canada, it's yours. Ah, but you've heard American politicians wax eloquent on the need for these expensive programs—interest deductibility alone costs the federal government $100 billion a year—because they allow the average Joe to fulfill the American Dream of owning a home. Sixty-eight percent of Americans own their own homes. And the rate of Canadian homeownership? It's 68.4 percent. --- If President Obama is looking for smart government, there is much he, and all of us, could learn from our quiet—OK, sometimes boring—neighbor to the north. Meanwhile, in the councils of the financial world, Canada is pushing for new rules for financial institutions that would reflect its approach. This strikes me as, well, a worthwhile Canadian initiative. http://www.newsweek.com/id/183670?from=rss According to this wiki entry, it seems Zakaria's name had come up for Secretary of State. His name was floated as a possible nomination for United States Secretary of State under Barack Obama's new administration in 2007 and again in 2008. http://en.wikipedia.org/wiki/Fareed_Zakaria Zacaria is a frequent commentator in the American Media. I would think Obama is aware of his views on the US economy and other matters. Will Zakaria's evaluation of Canada's financial prowess impress Obama? When the President visits Ottawa, might he discuss this good old Canadian common sense with the PM and how some of it could be exported south of the border? Quote "We always want the best man to win an election. Unfortunately, he never runs." Will Rogers
eyeball Posted February 9, 2009 Report Posted February 9, 2009 When the President visits Ottawa, might he discuss this good old Canadian common sense with the PM and how some of it could be exported south of the border? It doesn't sound like he'll have time for that. Apparently Obama may not even get off his plane. But if what we hear is true, the first visit of Barack Obama as President outside the USA, the charismatic, new face of politics in our time, is shaping up to be flat, bottled up, nearly invisible, and completely cut off from the real objects of any real visit - the people of Canada.Rex Murphy Canadian common sense, as in vision, flows from its people, they're who really make this country great. I don't think our banks or governments deserve anywhere near the credit they get. Obama might just as well just stay home. Quote I said now watch what you say they'll be calling you a radical, a liberal, oh fanatical criminal
g_bambino Posted February 9, 2009 Report Posted February 9, 2009 Canadian common sense, as in vision, flows from its people, they're who really make this country great. I don't think our banks or governments deserve anywhere near the credit they get. Riiight... Because it was all us Joe Canucks all along who were telling those banks to stop throwing mortages and loans at us. It must have been me who said no to the line of credit I applied for a year or so ago. Damn me and my Scrooginess! Quote
Oleg Bach Posted February 9, 2009 Report Posted February 9, 2009 Riiight... Because it was all us Joe Canucks all along who were telling those banks to stop throwing mortages and loans at us. It must have been me who said no to the line of credit I applied for a year or so ago. Damn me and my Scrooginess! Our banks are run by people that worship the idea of dominance and hording - thus they stayed secure. I guess the men that held us in loathing and contempt for being "common" did us a favour by being so cheap...congrats to them! Sometimes it all works out in the end - self centred rich folks that don't give a damn for Canada inadvertantly safed us.. The saved what they hated... LOL! Quote
kimmy Posted February 9, 2009 Report Posted February 9, 2009 Will the lefties never get over Obama not giving them a regal audience on Parliament Hill... even given the fact that it was Obama's decision that the visit be brief, all-business, and devoid of all pageantry? "Wah! Harper is trying to keep Hope and Change from coming to Ottawa!" As for Fareed Zakaria, I always enjoyed his appearances on the Jon Stewart Show. He has struck me as one of the smartest of media talking heads for some time. I don't know if being a smart guy by media standards makes him a smart guy by Secretary of State standards, however. I think it may be just as well that Mrs Clinton got the job. As for Canadian banks, I believe credit for resisting calls for laxer regulations belongs with Paul Martin, not any of the current bunch. If President Obama wants some of that common sense in Washington, he could probably hire PMPM as a consultant or advisor. -k Quote (╯°□°)╯︵ ┻━┻ Friendly forum facilitator! ┬──┬◡ﾉ(° -°ﾉ)
bush_cheney2004 Posted February 9, 2009 Report Posted February 9, 2009 Zacaria is a frequent commentator in the American Media. I would think Obama is aware of his views on the US economy and other matters. Will Zakaria's evaluation of Canada's financial prowess impress Obama? When the President visits Ottawa, might he discuss this good old Canadian common sense with the PM and how some of it could be exported south of the border? Maybe, but Canada's longer history on bank failures is not so perfect. I remember some issues with western banks in the mid 1980's, requiring BoC action. Zakaria is not considered an expert on economics, and even if he was, we know where such faith has driven things so far. Quote Economics trumps Virtue.
Oleg Bach Posted February 9, 2009 Report Posted February 9, 2009 Maybe, but Canada's longer history on bank failures is not so perfect. I remember some issues with western banks in the mid 1980's, requiring BoC action. Zakaria is not considered an expert on economics, and even if he was, we know where such faith has driven things so far. Our banking kings are approaching 70 years of age - these old school tough guys are the last of the Scots..once they are gone - it will all turn to crap and we instead of having controlled corruption will have uncontrolled corruption - just like AMERICA--- So Cheney...still kicking I see - what do you have? An alarm on the computer that goes off when I go on line? You sure like me for some strange reason - It's good to have a fine rapore with the best rep that the states have YOU - so are you going to run once Boma bombs out and is an utter failure --- I will come down and be your wing man...expensed paid of course. Quote
bush_cheney2004 Posted February 9, 2009 Report Posted February 9, 2009 ...It's good to have a fine rapore with the best rep that the states have YOU - so are you going to run once Boma bombs out and is an utter failure --- I will come down and be your wing man...expensed paid of course. Youth is wasted on the young....rookie President Obama is about to lose his political cherry....welcome to the NFL ! Quote Economics trumps Virtue.
Oleg Bach Posted February 9, 2009 Report Posted February 9, 2009 Youth is wasted on the young....rookie President Obama is about to lose his political cherry....welcome to the NFL ! That's nasty Cheney --- just had a vision of the little red fruit being popped by the big projection that is your congress and special interest hords that run the place - I wonder if it will be a rear entry? Quote
bush_cheney2004 Posted February 9, 2009 Report Posted February 9, 2009 That's nasty Cheney --- just had a vision of the little red fruit being popped by the big projection that is your congress and special interest hords that run the place - I wonder if it will be a rear entry? Either way...it's gonna hurt (his ego). Quote Economics trumps Virtue.
Oleg Bach Posted February 9, 2009 Report Posted February 9, 2009 Either way...it's gonna hurt (his ego). Very astute - Just like when they took our PM aside as a fledgling surrogate front man and explained the ropes to him...Funny - they run through a full election and really don't understand what the postion entails....untill they are in...THEN they have a meeting and explain that they are not going to be a god but will be instructed by those that actually believe they are gods...poor Obama - yes the ego will crash and he will wonder how the hell he got into this mess --- Look at the relief on Bush's face as he left office ---- like a prisoner finally walking out of the gates shoeless. Quote
bush_cheney2004 Posted February 9, 2009 Report Posted February 9, 2009 ....Look at the relief on Bush's face as he left office ---- like a prisoner finally walking out of the gates shoeless. Precisely my man....Bush never had an ego like Obama's.....not his style. He disarmed his enemies by playing dumb! It is readily becoming apparent that Obama may be a lightweight after all, without the balls or credibility to plainly say: "Go ahead.....make my day". Quote Economics trumps Virtue.
Oleg Bach Posted February 9, 2009 Report Posted February 9, 2009 Precisely my man....Bush never had an ego like Obama's.....not his style. He disarmed his enemies by playing dumb!It is readily becoming apparent that Obama may be a lightweight after all, without the balls or credibility to plainly say: "Go ahead.....make my day". Remember some Scillians sitting in a bar laughing - "Joe thinks I'm stupid" - the other guys say "Great - good job keep on going and take the money". Obama was a man that struts and swaggers - that was the first thing I noticed about him. You can not have that kind of pride and expect to be powerful - first thing you have to understand is that you are nothing - and with that submission you can grow - Obama is already full grown and as my kids used to say ----"when I grow down"... I am going to be this and that - they never said grow up. Here is what I learned...."Those who try to save their lives will lose them and those that are ready to lose everything will find life and life more abundantly" - it's kind of like a cosmic reverse...most don't get it. Are you ready to be nailed to the cross for your purpose and belief - those that are - are rarely nailed - but you have to at least bluff - Obama cares to much about himself and family - Like I explained to my brother - they will control you through what you love. Quote
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