Nationalists Rejoice!

Over at Marginal Revolution, Tyler Cowen posts the following in the category of ”too simple to be true”

We need a new banking system. A new banking system takes years to build. We will be in an economic downturn for years and because this crisis is global it will not be better than Japan in the 1990s. It is hard to build a new banking system through the current, old, nearly insolvent banking system. Maybe some smart person has a plan to build a new banking system through the old system, while avoiding toxic contamination through the problems of low-solvency institutions. That smart person remains silent. I have not given up hope. The Great Depression had bank failures, we have bank zombies.

Replying in the comments, ramster suggest the following solution to what ails the global financial system:

How about this. Each of the 5 Canadian big banks is assigned (i.e. given) one or more of the most struggling banks worldwide. They’re also given a capital infusion from the G8 and others of a few trillion $$$ in order to absorb all the garbage on the books. Then they’re forced at gunpoint (metaphorically of course) by the govt. of Canada to get global commercial credit flowing again. Canada does end up running all of world finance and Toronto becomes THE global financial center but that seems only fair since we apparently are the only ones who weren’t stupid enough to get into this mess in the first place.

Canadian banks are apparently in the best shape in the world.  Our banking system is strong enough that Washington is now asking the big 5 Canadian banks to start buying up the failing institutions south of the border.  This is because Canadian banks are highly regulated.  The soundness of our banks comes largely from the Canadian government wisely refusing to follow suit on the deregulation that was conventional wisdom in the late 90s.

Any thoughts?