Money in Canada and the US

[August1991]

Modern leftist, urban English-Canadians are proud of their difference with Americans.

But what is the difference between Detroit/Chicago/Toronto - all cities, once important as a railhead/lakeport.

=====

Financial markets in Canada work differently than those in the US. Why?

[bush_cheney2004]

Because the Dow, S&P, and NASDAQ indexes are routinely reported by Canadian media, but the TSX is not routinely reported by American media....one has to dig for it.

[August1991]

On 9/25/2018 at 12:59 AM, bush_cheney2004 said:

Because the Dow, S&P, and NASDAQ indexes are routinely reported by Canadian media, but the TSX is not routinely reported by American media....one has to dig for it.

East coast American media routinely reports hurricanes arriving from Cuba, the Caribbean.

California media doesn't.

In Canada, no one worries about hurricane reports - except as empathy for others.

=====

BC2004,

Do you live on the east or west coast?

Edited October 1, 2018 by August1991

[August1991]

To return to my OP, Canada's central bank dates from 1935.

America's central bank dates from 1912.

By most standards, both are "recent institutions" but they belie an entirely different history. Why?

Note: Chicago and Toronto are both lakeside cities. 

Edited October 1, 2018 by August1991

[Michael Hardner]

18 minutes ago, August1991 said:

 By most standards, both are "recent institutions" but they belie an entirely different history. Why?

Note: Chicago and Toronto are both lakeside cities. 

Why don't you just flip over the cards and tell us ?  I'm guessing it's a simple answer, and there's a Lutheran involved.

[bush_cheney2004]

1 hour ago, August1991 said:

Do you live on the east or west coast?

 

I have lived on both coasts, but now reside (and prefer) the Midwest coast.

The money thing is explained in F. Scott Fitzgerald's "The Great Gatsby" (1925)

[JamesHackerMP]

Wait, I don't understand your question. You're asking about financial markets? Or the differences between Toronto, Detroit and Chicago? I'm clearly missing something here.

I've never read The Great Gatsby but I've seen the episode of Family Guy where they parodied it. I know the book had something to do with the Depression and rich people who drink a lot.

Edited October 1, 2018 by JamesHackerMP

[Zeitgeist]

Gatsby is really about the American Dream.  Death of a Salesman and An American Tragedy centre around similar themes.  The overriding message is that there's a very compelling ideal of success that many of us pursue.  Though details may vary, it's about attaining status, materially and socially, having that house on the hill, the highly desirable spouse, 2.5 kids and a dog, and participating in the upwardly mobile economy.  The great metaphor for this in Gatsby is the light at the end of the pier.  Those stories are about the lengths people go to achieve the American Dream, which is always somewhat elusive.  The pursuit can be tragic when we compromise too far to achieve it, stepping on family, friends, ourselves, compromising morality and what's really important in life.  That's the literary take anyway.  I'd say that dream is just as alive in Canada.  Politicians always promise it.

[August1991]

On 9/30/2018 at 10:08 PM, Michael Hardner said:

Why don't you just flip over the cards and tell us ?  I'm guessing it's a simple answer, and there's a Lutheran involved.

The monetary history of the two countries is remarkably different.

Michael, if I could flip a card and show the answer, I would.

True, Canada is largely a Catholic country and Americans are mostly Protestants (Lutherans). I simply don't know if that is the reason to explain why our banks usually work but American banks often fail. Or why we let a few banks dominate us while Americans insist that Goldman Sachs has too much power.  

 

Edited October 3, 2018 by August1991

[cannuck]

On 10/2/2018 at 10:18 PM, August1991 said:

The monetary history of the two countries is remarkably different.

Michael, if I could flip a card and show the answer, I would.

True, Canada is largely a Catholic country and Americans are mostly Protestants (Lutherans). I simply don't know if that is the reason to explain why our banks usually work but American banks often fail. Or why we let a few banks dominate us while Americans insist that Goldman Sachs has too much power.  

 

The difference is that in Canada, the "big" banks aren't really all that big or powerful.  The Bank of Canada is the central bank, owned and fully controlled by the government - as is the case in most of the world.  Our banking system is overseen by the Superintendent of Financial Institutions, and they ensure that our conservative bank ratios are in place and actually enforced.  We are also signatory to Basel conventions on banking and comply thanks to SOFI.  Our major failure in banking is that we let the reckless and irresponsible version of finance featured in the US influence some of what we do.

South of 49, some of the Manhattan banks are REALLY big, and operate in an environment where they and their cohorts OWN the central bank (the US Federal Reserve) - and essentially the government, so they get to dictate fiscal and monetary policy.  When they create some "money from nothing" get to increase the money supply by racking up another HUGE liability to the taxpayers, stuffing the cash into their personal back pockets in a runaway, unregulated and unenforced orgy of greed.  When their treachery causes a failure, they simply dictate to their puppets inside the Beltway to bail them out, since they are "too big to fail".   The US is NOT signatory to Basel conventions, doesn't regulate very much (since Goldman Sucks has had them repeal all of the protective legislation from the 1929 crash and subsequent government attempt to protect the people from the banks - now with Goldman in charge, they protect the banks from the people).   Instead of enforcing regulations that barely exist, the game is to simply do what the member banks tell regulators and governments to do.

BTW:  how big has this problem become?   The five largest bourses on the Street have a combined exposure to derivatives (a bet on a bet, backed by nothing - also called "synthetic" instruments since their is little or no underlying asset) something like 20x to 30x WORLD GDP!  Yes, Goldman and the Street have far, far too much power and use it with no regard to the taxpayer who is ultimately going to be stuck with the bill (and it is in the trillions). 

AND, they own the central bank of the US lock, stock and barrel and can do pretty much what they please.   Only Italy (an icon of financial responsibility, no!!???) allows the Central Bank to be fully private.
 

Edited November 4, 2018 by cannuck

[bush_cheney2004]

6 minutes ago, cannuck said:

The difference is that in Canada, the "big" banks aren't really all that big or powerful. 
 

 

....and Canada remains under-capitalized because of this and other factors.

[cannuck]

5 minutes ago, bush_cheney2004 said:

 

....and Canada remains under-capitalized because of this and other factors.

Canada is undercapitalized because we imitate the idiotic model to our South where finance is allowed to operate a system of wealth re-distribution without the nasty bother of creating any wealth.   Even the Chicoms have figured that out and managed to overwhelm the world of trade in a few short decades.

Edited November 4, 2018 by cannuck

[bush_cheney2004]

Just now, cannuck said:

Canada is undercapitalized because we imitate the idiotic model to our South where finance is allowed to operate a system of wealth re-distribution without the nasty bother of creating any wealth.

 

Then not doing it very well....try harder !