There are two major distinctions between the U.S. and Canadian bubbles, apart from (perhaps) a difference in the level of premeditation. First and foremost, it was impossible for Stephen Harper to match the saturation level of fraud, which has permeated every nook and cranny of the U.S. housing sector -- from rampant land-title fraud to (institutionalized) liar's loans to literal "fraud factories": companies being formed solely to custom-produce forged/fraudulent documents for the Wall Street banksters. The other important difference is that when the Wall Street crime syndicate and the Republican regime looted approximately $15 trillion from the U.S. financial system in direct handouts, (so-called) "0% loans", infinite "loss guarantees," and near-infinite tax breaks, there were no "bail-in" rules in place. Directly stealing from people's accounts to indemnify their gambling losses was merely a wonderful fantasy for U.S. banksters (at that time). With Stephen Harper's housing bubble poised to burst -- whenever Canada's banksters choose to detonate it -- the question becomes: How large will the subsequent looting be, with Canada's "bail-in" rules officially carved in stone?
Most of Wall Street's looting following the crash of '08 was of necessity restricted to the 0% loans, loss guarantees and tax breaks. With the entire U.S. economy collapsing (as appears to be happening in Canada), there was only a limited amount that could be stolen from the public Treasury. When Canada's housing bubble is detonated, there will be no such limitations. As was spelled out in my most recent commentary, the Canadian budget (and the Financial Stability Board "policy paper" it is based upon) opens up the possibility of not merely stealing bank deposits, but any/every asset in the financial system: bonds, pensions and equities as well. "Trust funds"? The term has been rendered archaic. Even if we weren't dealing with intentional insolvency and premeditated betrayal, we have already long since crossed the threshold into insanity with respect to another nonsensical euphemism constructed by the corporate media: "too big to fail." The banks are "too big to fail" but the people (collectively) are not? What if the banksters now tell us that the only way to "save them" (but again only temporarily) is for every family to sacrifice their first-born males? When do we say "enough is enough" with this criminal insanity? Congratulations, doctor, the operation was a success ... but the patient died. And now Stephen Harper and the bankers are going to "operate" on Canada. In 2008, the same traitor governments told us they were "fixing the banks" with the largest public looting of our economies in history. In 2013, we're being told that they are still "fixing the banks" -- except now this requires exponentially more looting. It is now crystal clear when our governments will be finished "fixing the banks," at which point these bankrupt shells and our insolvent economies will be allowed to default on their gigantic debts: after every last penny of wealth belonging to the little people has been cleaned out of the Western financial system. Follow @bullionbulls This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.