You can definitely add the government and its loosening of banking regulations coupled with their lax oversight to the mix Dave.

In Canada we managed better precisely because our banking system is more heavily regulated.

It may also help that our system is smaller and national. When you have lots of smaller, regional banks, all competing to give out mortgages, then their due diligence tends to suffer. By that I mean they will not challenge seemingly high appraisals, check credit, verify employment etc....something a prudent lender would do. And anyway, they simply off loaded (sold) their mortgages to the likes of Lehman and Bear, so they got rid of their default risk...so why not cut corners?


If writing ever becomes work I think I'm going to have to stop