"I feel like Canada (where I'm from) was much more capable at dealing with the crisis because we had a small more cohesive system and our localized issues are e

"I feel like Canada (where I'm from) was much more capable at dealing with the crisis because we had a small more cohesive system and our localized issues are easily dealt with. I feel that starts to break down at a larger scale." In Canada (where I'm from as well) - we definitely are not an more sophisticated than anywhere. Though your point about being 'smaller' I think is valid. We are simply very conservative, behaviourally. We generally have stricter rules about most things, our finance execs aren't as aggressive, people are much less likely to lie on application forms. We don't 'innovate' with finance, i.e. 'finding new ways to package crap mortgages to sell them as good' - that's an Anglo/American thing :) America is the 'land of the free' Canada has always been about 'order, stability and peaceful coexistence' - so it's a cultural thing that exhibits itself systematically. I should say one thing: we do have a wicked housing bubble in Toronto, and economists have been predicting demise for years, and it could very well happen if foreign buyers lose the ability to spend. A 'Chinese crash' combined with slightly higher interest rates - would put Toronto in a really, really dire situation. And we we can't blame economists for that one - the risks are clear.