The global recession we're maybe, possibly, could be just beginning to emerge from taught the West a few lessons - and they came from Canada.
1. Unlike so many other countries Canada did not suffer a major bank failure.
2. Canada didn't suffer a major bank failure mainly due to the former Liberal government's prudent and restrictive regulation of our chartered banks.
European leaders want next month's G20 meeting to result in an accord for a global bank tax, a tax on transactions that would generate a global fund some foresee reaching hundreds of billions of dollars. Proponents say the fund would be available to cope with a future financial meltdown and would "discourage risky banking."
The way to discourage risky banking is to strictly regulate the banking industry so that banks remain - gasp - banks. Banks should not indulge in gambling and its up to their national governments to see to that. Setting up the global bank tax fund is tantamount to accepting another financial meltdown. Otherwise why are you putting aside hundreds of billions of dollars?
If the Euros are afraid of putting their boots on the necks of their bankers that's their problem. This global bank tax is nothing but an invitation for a repeat performance of the mess we've just gone through.
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