Canuck Economist

U.S. vs. Canada: Banking Edition

About the Canadian Housing and Mortgage Corporation....it requires a minimum of 10% equity (except for a small period when the govt as a copy cat of Bush's sillyness allowed 5% - but not for long); also note that CHMC is a government entity, it is backed directly by the govt. No pretense that there is a private investor holding the bag. It does not spin mortgages on unsuspecting investors that would create a falling dominoes effect. Yes, this is in part why the Canadian realestate market is also more stable - large numbers headed out of the burning building and all that. Are there lessons in this "regulatory" set up?

and yes, Canada has carried more than its fair share of the load in Afganistan - in human and financial terms.