[NonIndigenous]

Originally Posted by Ibanez

U.S. Banks lately are firing thousands of people in fear of penalties from strict and complicated government regulation. But hey, at least people are being saved from themselves and from accepting mortgage terms they can't afford...

Its not as simple as the typical liberal talking point "more regulations" but the type of system. A survey conducted by the World Economic Forum, concluded that Canada has the best banking system in the world, receiving a score of 6.8 out of possible 7. We have a simplified regulatory system.

We have no Fannie Mae and Freddie Mac promoting "affordable housing" through guarantees or purchases of high-risk loans. The banks own the mortgages instead of selling them off. Mortgage interest is not tax deductible. its harder to qualify for a mortgage, and if a down payment is less than 20% of the value of a home, the mortgage holder must purchase mortgage insurance. So you can't have an idiot buy with a 3% down payment freely like you can in the US. Plus in the US you can walk away from a mortgage...in Canada you are responsible under all circumstances. And yet it's not any more regulated than the US, or more government involvement - it's just a streamlined system with less legislation tying the hands of lenders and more responsibility on the buyers. Efficiency ftw.

I think that's more like what I was thinking. I don't remember the details or the source of my previous post. It was some TV documentary. It was explicitly stated that there were specific individuals implicated in some form of "deregulation". It's a shame I don't remember more.

It's obvious that messy and thoughtless regulation is trumped by efficient, well organised regulation.