Britain Selects a Canadian to Lead the Bank of England

[NoOneMan]

4. Canada spent the last few years kicking the can down the road, creating a financial mess

And it isn't all Carney's fault, but I don't think he deserves praise for Canada's stability (created through cheap money and a resource economy)

Canada's banking system only has some semblance of stability because Canada is subsidizing all the private risk banks take (drastically reducing their lending liability exposure). Instead of clamping down on debt/liabilities and deleveraging, Canada went forward with a 0-down, 40 year loan that anybody and their dog could qualify to buy homes, while the CMHC insured almost every loan that crossed their desk without any type of thorough home appraisal. The result wasn't just home price stabilization while the world was in turmoil, but acceleration of prices and consumer debt:



And now Vancouver home sales have declined 32% and soon Canada is going to be on the hook for a whole lot of risk. If any economies that demand Canada's resources stumble (like China), their economy is finished for a long time. But their banks...hell, they'll be fine.