How Canada Avoided the Financial Bubble

Canada avoided the Financial Crisis of 2007-2010 using simple, no-nonsense financial regulation involving (1) capital requirements (targets for tier-one capital holdings), (2) quality of capital regulations (75% of tier-one capital in common rather than preferred stock) and (3) a leverage ratio of 20 to 1.

Similar lesson about no-nonsense control and regulation of the health care system are also available from Canada: (1) control of physicians salaries, (2) control of capital investment and technology and (3) control of drug prices.

Even though Canada has flirted with Neoliberalism, it seems to have avoided the nonsensical parts.