Why Canada Can Avoid Banking Crises and U.S. Can’t

[Docfeelgood]

Does it?

[Sava]

I would say there are many more significant contributing factors. Probably the biggest, in the case of 2008, was the repeal of the Glass–Steagall Act. I'm sure some finance idiot or right winger will argue the opposite.

[Docfeelgood]

I saw a documentary about the repeal of the Glass–Steagall Act.
From my understanding, like gambling with other peoples money and losing it without consequences.

[Sava]

I saw a documentary about the repeal of the Glass–Steagall Act.
From my understanding, like gambling with other peoples money and losing it without consequences.

Yup. The incentive to make big $$$ from mortgage backed derivatives provides motivation to basically destroy the economy for a huge payout.

[Docfeelgood]

And perfectly legal.

[Sava]

It seems odd the opposition to such banking shenanigans is pretty universal across the political spectrum... yet nothing is done about it. Bernie Madoff is still the only guy in jail. And he stole from other rich guys.

[Docfeelgood]

To think people are sent to prison for life for less.

[giblets]

It seems odd the opposition to such banking shenanigans is pretty universal across the political spectrum... yet nothing is done about it. Bernie Madoff is still the only guy in jail. And he stole from other rich guys.

How is it odd that people who didn't break any laws aren't in jail?

[Sava]

How is it odd that people who didn't break any laws aren't in jail?

I was referring to new legislation designed to curb such practices. Seemed like an obvious implication.

[giblets]

I was referring to new legislation designed to curb such practices. Seemed like an obvious implication.

Well, we did have Dodd-Frank. I guess you don't think that was adequate?

[Sava]

Well, we did have Dodd-Frank. I guess you don't think that was adequate?

I'm not familiar enough with the particulars to have a strong opinion. From what I've heard, it doesn't seem like enough.

[Kuciwalker]

How do people hedge against central bank ****ups?

On the downside, the simplest way is to buy bonds. More generally, buy assets with a defined nominal value.

There are also specific hedging instruments available, like TIPS, that work both up and down.

[Jon Miller]

Have good relationships with a support group of family/friends/etc (the most important thing).

Purchase land that is (1) cheap, (2) can grow things on, (3) preferably not super cold/dry/etc (if things get real bad you can eat...).

Purchase a pickup truck (is is one from my in-laws, he said that if you had a pickup truck and were able bodied you could always find informal work).

Do not have your only major asset be your house, especially if you owe on it (you will get stuck in a location, maybe there are no jobs there?).

JM

[Jon Miller]

Finally, your goal is to keep your investments in the index funds/etc throughout the recession/depression (when everyone else is selling). If possible, buy.

If you are able to do so, you are likely to become wealthy during the recovery.

See tables at http://www.istockanalyst.com/article...icleid/2803347 .

Note that I am a poor and have arguably not followed any of this advice.

JM

[Kuciwalker]

Almost all of those things are horrible advice.