We don’t think it is a coincidence that the flaws in Canada’s banking system are being exposed at the same time China’s appetite for natural resources is being suppressed by a glass ceiling on capital misallocation. In fact, while traveling through China last year, we learned that many of Chinese refer to one particularly popular Canadian city as “Hongcouver” – hence, our strong interest in Canada and in meeting new friends up north. Today, the world’s “healthiest” economies are closely tied to the insatiable Chinese demand for resources. This is the part of the world that is supposed to be healthy. These are the countries the rest of us are counting on for growth. Yet, as noted in a recent report outlining the short thesis for iron ore, “The transmission mechanism that will take this disease that started quietly in the summer of 2011 and spread it globally are CRABS. The CRABS are the commodity rich countries that are riding China’s spending spree. They are Canada, Russia, Australia, Brazil and South Africa.” This is absolutely perfect. We think the CRABS will ultimately be a much bigger problem than the PIGS. If for no other reason, we understand that CRABS are highly contagious.