Quote:
Originally Posted by freedogger
While not quite this extreme, a fair amount of people in the US have been moving their accounts from the big banks to local credit unions. All it takes is enough people to do this...
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Why can't we learn from history? This is what happens when people start doing things for the sake of getting their pound of flesh as opposed to doing what's sound. A significant move backwards towards smaller, local financial institutions could create another Savings and Loan crisis like in the 80s when there is a panic and these smaller banks and credit unions can't handle the liquidity crunch.
Pretty much the big reason why the Canadian model is being reconized as the best internationally is because we have a oilgopoly of a few large Schedule 1 banks that service every market everywhere in the country. That basically ensures the banks don't make as risky loans, because the marketplace doesn't force them to (Because there's less competition). When there's a problem they're big and can handle the liquidity crunch.