RE:RE:RE:RE:A long slogI think you're right on this US Gov't support of their Banks tied to the Canadian Housing formula, Flamingo. Because in 2008 when they had that Financial meltdown the US had to tie their Financial system to the housing industry and that was done through all the headaches from the Fanny May & Freddie Mac's. They wanted that fiasco to never happen again. So they took a page out of the Canadian Handbook on deposit structures for Home buying &
Insuring the home Buyer's according to that deposit structure.
flamingogold wrote: I think what we just witnessed with the US banks is over, or more importantly, how the government will react to it. They just set a precedent... ie. they will protect depositors against losing their money. This was necessary to prevent further bank runs and a full on financial collapse. Critics have already come out saying this is not how capital markets are run. Maybe so, but just like Canadian housing, the US financial system is too big to fail.