The major gap in your understanding: Bank insolvency != business cycle. Canada does indeed experience business cycles like every other significant economy. There are some examples in this article, if you don't believe me:
Does that meant that your comment had little or nothing to do with the "panic and a crash every few years" from the comment of nerdponx that you were replying to?
Because I thought they were connected, and was following that same topic of "panic and crash".
I do not know why you think "panic and crash" is specific to a run on the bank / forced bank restructuring. By the way, the original comment was about business cycles in general (that nerdponx replied to):
> Are business cycles in the modern sense (unemployment that lasts for longer than six months) known to happen in the presence of free banking and absent a central bank? Actual question. It matters because we know how this happens when a central bank controls the currency supply and allows NGDP to drop. It's not obvious to me that this happens with free banking.
Hope that clears everything up. I don't like arguing semantics for virtually no reason, but in this case it appears you legitimately misunderstood that the terms business cycle, market panics, and crashes are not specific to banks.
Because I thought they were connected, and was following that same topic of "panic and crash".