The bores are back in banking. Slow moving and scelerotic institutions like the Canadian banks are being praised to the rooftops for prudence. Sure, if you never do anything or take a risk in life you will be safe and secure but that comes at the price of low or no growth.
Sadly the $2 billion blow-up at JP Morgan last week, not to mention the eurozone banking crisis, points exactly in that direction. It is a cycle and the excesses of the last cycle inevitably mean a regression back to old-fashioned banking.
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