BNN had a fabulous interview with John Crow today, former governor of the Bank of Canada.
- We have enormous fiscal deficits, Canada is big, U.S. is bigger, U.K. has huge issues, the question is who goes first
- The Fed missed the boat, houisng, interest rates, moral hazard
- On bubbles: the housing situation in Canada is concerning, but certain bubbles are more dangerous than others. These are the ones where sistemic risk. There is no sub-prime lending in Canada
- Tax on banks is a good thing, banks have not paid enough and have not changed their ways either.
Watch interview Part II