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The Big Short (3 reasons to dislike this movie)

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Banks can and do fail in Canada....as in the 1980's. American and other foreign investment/ownership makes up for the capital shortage...others bet on it like these guys in the movie.

In general, Canadian banks don't fail.

In the 1990s, Confederation Life was a remarkable example - by Canadian standards. But not by American standards.

Edited by August1991
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This movie has become a demonstration to me of what happens when people finally see a disaster on the horizon.  The attempts to stave it off were a study in human nature.  Treat the symptoms not the r

Confederation Life was an insurance company that went through a remarkably gentle liquidation. It was not a bank and was not involved in residential mortgages.

The last 2 bank failures were in the 1980s, both involved small commercial banks that also had little or nothing to do with residential mortgages. Some believe their failure was rooted in the NEP...... iniit6ted by a familiar name.... Trudeau Sr. I reckon that Trudeau Sr certainly and somewhat gleefully pushed Alberta into the abyss, but the bank failure was more grounded in bad business choices. There were also a bunch of 'mortgage' companies that have failed in Canada, that are in the second /third mortgage business. Prinicpal Group was one where some folks went to jail, as their business involved some fraud.

But none of them matter at all in the big scheme.

One change in Canada has been the advent of many lenders in first mortgages. There are around 60 r so now, when 25 years ago there may have been 10 or 12. All are subject to the Bank Act up to 80% LTV, all are required to get an insurer for anything high ratio. No exceptions for residential customers.

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This movie has become a demonstration to me of what happens when people finally see a disaster on the horizon.  The attempts to stave it off were a study in human nature.  Treat the symptoms not the root cause.  Trying desperately to avoid the consequences of approving millions of mortgages for people that couldn't afford them.

But it was inevitable, like the rising of the sun.  People were going bankrupt at an alarming rate, and nothing, and I mean nothing, could be done about it.  This kind of behaviour, trying to avoid the consequences after the fact, is simply what we do.  The idiot drunk or texting driver that causes an accident and then flees the scene to avoid the consequences.

The work place offender who immediately wants to go on stress leave after a racist tirade against Muslims(true story), or when they get caught stealing something.  Human nature.  Trying to avoid the chaos that you've caused by your own foolishness.  It's as old as the sun.

It's the wise person who has self control.  That inner voice of reason that we decide to listen to instead of doing the dirty deed.  That type of person is rare, though.  They would take one look at the sub prime mortgage being offered, and say no, because they can't afford the payments when the discounted period ends, and have no guarantee that they'd be able to sell before then.

Instead millions were crying and shrieking that it wasn't their fault as they went bankrupt.  The bank was to blame.  The politicians were to blame.  The market was to blame, anything to avoid taking responsibility for signing on the dotted line.  They went bankrupt anyway, by the millions.  Human nature.  It's time to start listening to that inner voice.



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