Canada Praisin'

Because I am often accused of Canada bashing, I have to praise our glorious northern neighbors once in a while, too. Just to provide some sort of fig leaf.

This is from an interesting Washington Post editorial.

Government support for housing was well-intentioned: Homeownership is a worthy goal. But when government favors a particular economic activity, however validly, it must seek countervailing control to ensure the sustainable use of public resources. This is why banks must meet capital requirements in return for federal deposit insurance. Congress did not apply this sound principle to Fannie Mae and Freddie Mac; they were allowed to engage in profitable but increasingly risky activities with an implicit government guarantee. The result was that taxpayers had to assume more than $5 trillion of their obligations. Contrast U.S. experience with that of Canada, where there is no mortgage interest deduction and the law requires insurance on any mortgage over 80 percent of a home's purchase price. Delinquency rates at Canada's seven largest banks are near historic lows.

That's not faint praise coming from the Washington Post where the editors still remember those dastardly Canadians hordes that burned down our White House in 1814. Though apparently we burned down their parliament building first. Both actions would probably get 90% approval ratings nowadays.