Richard Rider

Richard Rider
Location
San Diego, California, USA
Birthday
August 24
Title
Chairman
Company
San Diego Tax Fighters
Bio
Biography of Richard Rider (Updated July, 2011) San Diego, CA 92131 E-mail: RRider@san.rr.com * AGE: 66 * EDUCATION: B.A. Economics, University of North Carolina, 1968 * MILITARY SERVICE: Commander, Supply Corps, U. S. Naval Reserve, retired after 26 years (four years active, the rest in the reserve). ** OCCUPATION: Retired stockbroker and financial planner. Lifetime member of the International Association of Financial Planners. Former business owner. * AFFILIATION: • Chairman, San Diego Tax Fighters • National Taxpayers Union • Howard Jarvis Taxpayers Association • San Diego County Taxpayers Association * POLITICAL ACTIVITIES: • Successfully sued the county of San Diego (Rider vs. County of San Diego) to force a rollback of an illegal 1/2-cent jails sales tax, a precedent that saved California taxpayers over fourteen billion dollars, including $3.5 billion for San Diego taxpayers. • Actively supported a variety of tax-cutting ballot initiatives including Proposition 13. Has written ballot arguments against numerous county and state tax increase initiatives. • County co-chair of both California term limit initiatives (Prop 140 and Prop 164). • Libertarian Party candidate for governor in 1994. • Candidate for the 3rd District County Supervisor in 1992 (third place among six candidates with about 20% of the vote). • 1993 – appointed to (and then elected chair of) the San Diego County Social Services Advisory Board. • 1996 – appointed as a Commissioner on the California Constitution Revision Commission by state Assembly Speaker Kurt Pringle. • Has been involved in legal actions against City of San Diego to force a public vote on issuing bonds for Qualcomm stadium expansion, convention center, baseball ballpark and other projects. • 2005 – Unsuccessful candidate for Mayor of San Diego, though his reform ideas have since taken hold. • 2007 – Columnist for NORTH COUNTY TIMES and SAN DIEGO DAILY TRANSCRIPT • 2009 - The Howard Jarvis Taxpayers Association's "California Tax Fighter of the Year" * FAMILY: Married. Wife, Diane, is a retired public high school teacher. Two sons, ages 32 and 27.

MARCH 22, 2010 1:18PM

12,000 US bank failures vs. TWO Canadian banks

Rate: 1 Flag

Canada is no free market country by any standard.  But according to the Heritage Foundation's 2010 ranking of countries' relative "Economic Freedom," Canada (national health care and all) is the 7th most free country in the world.  The U.S. has dropped to 8th.  But at least we still beat the pants off North Korea!

http://www.heritage.org/index/Ranking.aspx

With the implementation of our country's new, full, "free" national health care, we should drop several more notches in coming years' comparisons.

But I digress.

One financial area where Canada excels is the way they have handled their home mortgage business.  The widespread banking disaster we see in the U.S. is nonexistent there.  I'm told that Australia has the same banking system as Canada, and also has little problem with real estate meltdowns.

Here's some quick factoids from economist Mark Perry's excellent "Carpe Diem" website blog:

http://mjperry.blogspot.com/2010/02/bank-failures-12000-in-us-vs-2-in.html

Bank Failures: 12,000 in the U.S. vs. 2 in Canada

 

Number of bank failures during the 1930s
United States: 9,000
Canada: 0

Number of Bank Failures during S&L crisis (1980s-90s)
United States: Almost 3,000
Canada: 2

Number of Bank Failures during the Great Recession (2007-2010)
United States: 196
Canada: 0

Delinquency Rate for Home Mortgages in December 2009
United States:
9.47%
Canada:
0.45%

Return on Equity for the Banking Industry in 2008
United States: -15% (approx.)
Canada: +10% (approx.)

Home Ownership Rate
United States: 67.2%
Canada: 69%

What explains these significant differences between the U.S. and Canada? What is it about the Canadian banking system that allowed it to survive the recent worldwide slowdown without a single bank failure? What can the United States learn from Canada about sound banking? Find out here at my America.com article "
Due North: Canada’s Marvelous Mortgage and Banking System."

RIDER NOTE:  There are a number of factors contributing to Canada's success in avoiding the bank meltdown so common in the U.S. and elsewhere.  It's worth reading Perry's article above.

 Two items stand out for me:

1.  The Canadian real estate loans are RECOURSE loans (like personal loans in the U.S.) -- you can't walk away from the loan obligation through default.  This is tremendous incentive to borrow prudently.

2.  The real estate loans are not deductible -- an incentive to borrow less and pay such loans off sooner.

Bottom line:  The U.S. home mortgage default rate is TWENTY-ONE TIMES HIGHER than the Canadian rate, while Canada's percentage of home ownership is a bit higher than the U.S.

BTW, let's not wax too euphoric about the Canadian banking system -- they have received heavy national government bailout subsidies.  But their problems are minor compared to our mess in the good ol' US of A.

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