Reconfiguring the American banking system to look like the Canadian model seems excessive. The current problems were caused by a bug in the financial system re

Reconfiguring the American banking system to look like the Canadian model seems excessive. The current problems were caused by a bug in the financial system regulations: banks and people who purchased real estate were permitted to use too much leverage. Instead of a rewrite, maybe we should patch the bug by reducing the level of permitted leverage. This has already been done for banks, but it could also be done for real estate purchases in a fashion similar to the way that Fed regulation T limits leverage in stock investing. The great depression was kicked off by excessive leverage in stock investing, and reg. T was part of the patch applied to fix that problem back in the 30s. The fix seems to work pretty well since the internet stock bubble didn't endanger the financial system. In fact, the regulations that require stock brokers to consider whether an investment is suitable for their customer should probably also be mirrored in new regulations for mortgage brokers as well.