Xblog

I’d be remiss if I didn’t point out Fareed Zakaria swooning over Canada. I do think he paints an overly sunny picture and he starts making it sound like almost anything Canadian is inherently great (which I’ll claim is true to my American friends, but amongst ourselves Canadians know better), but the gist of his points are true. Honestly, I think a hybrid of what the US has and Canada has would be a great idea. Have the core of your banking system be large, boring, heavily regulated banks with very conservative leverage ratios; then allow for experimentation and risk taking in separate financial institutions, with the open acknowledgment that these institutions are inherently less reliable. When you think about it, that picture isn’t too far off from where the US was just over a decade ago. Hmmm….