Another example of free market capitalism leading to American Exceptionalism—from the ratification of the constitution in 1787 to 1907, there were six major banking and financial crises in the country, on average one every 20 years. After the big one, about 20 years later, in 1929, we wised up and passed reforms and regulations, which put off the next crisis for 58 years, unlit 1988. Because of that success rate, we deregulated everything in sight and 20 years later, 2008, what happened again?
In contrast, our Canadian friends passed laws in 1867-1871 that regulated banks and they have had just a handful of individual bank failures since then, and were virtuially unaffected by the melt down of the 1930’s
A big difference?
Canada’s banking sector is much more oligopolistic than that of the USA. Canadians are served by a small number of big banks with branches in every corner of the country. In contrast, the United States has a vast number of small banks. Until recently, there were many laws in the United States that prevented banks from one state from operating in another.
What can we learn from this? Canadians do not understand the god-given and approved system of free-market capitalism. They must be atheists and communists. And they hate freedom too.