Why are Canadian banks doing fine while other financial institutions around the globe are falling apart? Here is a very interesting article by BMO Chief Economist, Sherry Cooper. In the article she describes the problems with the U.S. housing market and why Canadians are much better off.
American's have more incentives to be debt ridden than Canadians. Americans receive tax breaks on their mortgage interest costs and property tax bills. As Canadians, we've long complained about this difference and have wished we could be more like our neighbours down south. We now realize that these tax incentives were part of what caused the meltdown across the border. No longer are Canadians ashamed of their ultra conservative culture. Our banks are doing just fine and sure, the housing market has cooled but is nowhere near the state of the real estate market in the U.S. We are a prudent and conservative society, and finally, proud of it, thank you very much. Read the full article HERE.