Since 1790, the United States has suffered 16 banking crises. Canada has experienced zero — not even during the Great Depression.
Pretty heady words from such a liberal rag. Oh wait. That comes from The Wall Street Journal. Yes, that Wall Street Journal.
Canada has been a stable banking country, especially in light of the crash of 2008 and what has happened since in the United States. Jason Jones went back to his native country, Canada, to explore the difference between the U.S. and Canadian banking systems.
Jones paints the contrast between a loud American banker talking about "free market" and the joys of derivatives versus a CEO of a major bank in Canada who is horrified at the prospect of screwing over his customers.
"The model of regulation we have had in this country has been a huge contributor to the stability of the banking system and the stability of our economy." — Peter Aceto, president and CEO, ING Direct Canada, the 8th largest bank in the country.
"But regulation doesn't work." — Jones.
"Definitely slows things down a little bit. But the Canadian banking system has not had a crash in 150 years or even longer." — Aceto.
Jones introduces Aceto to the idea of derivatives into the Canadian banking system. Aceto is horrified about the idea. "There is nothing fun about people's house losing 50% of their value."
At the end of the segment, Jones asked Canadians (Toronto) and Americans (New York City) to describe bankers.
Canadians: trustworthy, considerate, extension of my family, reliable, transparent, I love Canadian banks
Americans: cockroaches, pricks, sleazy, disrespectful, backstabbing, money-grabbing, pieces of sh*t
Several votes in favor of stability: Canadian stability.
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