Canadians were told that Canadian banks didn’t need extensive bailouts as American and European banks needed, and only received some short term liquidity support. Now, Canadians learn that their banks were completely under water, and in some cases, the bailouts that weren’t bailouts were more money than would have been needed to buy the banks outright. In other words, their banks were bankrupt. Their bailouts WERE bailouts, and they lasted for years, not months. A large part of the Canadian bank bailouts came from the US Federal Reserve.
These are not sound banking practices or monetary policies. These huge emergency bailouts are global phenomena, and they’re indicative of serious underlying problems. Papering over these problems by printing money out of thin air and giving it or loaning it to the banks at below market interest rates is not a long term strategy for success. In fact, it’s more of what caused the problems, and it’ll only lead to an even bigger crash in three… two… one….