“Canadians are even more in debt than anyone imagined. Revised Statistics Canada calculations place household credit market debt in the second quarter at 163% of disposable income, well above the previously reported 152%.”
“Canadian households are even more in debt than anyone imagined, according to a revised Statistics Canada calculation that gives a more accurate picture of family finances.
The revisions place household credit market debt in the second quarter at 163 per cent of disposable income, well above the previously reported 152 per cent, although the two levels are no longer a direct comparison.
The new numbers remove non-profit institutions from the household category, giving a more accurate accounting of family finances. The revision shows debt growth over the last decade that looks “eerily similar to the U.S. experience, just before their dramatic housing bust,” said David Madani, an analyst with Capital Economics.
“Overall, this supports our bearish view that Canada’s housing boom is unsustainable and the eventual correction, which we think is already underway, is likely to have a material negative implications for growth,” he said.
The revisions show a much steeper climb, with debt growing in each of the past six quarters.”
One of the greatest propaganda lines entrenched into the Canadian public psyche is that “Canada is different”, our Banks etc are secure, more stable, regulated….and what happened in the US and elsewhere cannot happen here.
Famous last words ?
Canada , when compared to the rest of the world,is admittedly a large land maas..but its influence on the world’s stage is irrelevant, and it is not immune from whatever ails the rest of the world.
Are we like pigs being fattened up for a slaughter….? was this part of a master plan?
I think so…if for no other reason that Gov’t did not put a damper on the irrational exuberance, because if it doesn’t , the end result is always predictable.
Any idiot can predict what will happen when credit expands and loose lending practices are literally legislated. A bubble will result,and bubbles, by nature have no solid integrity, they are doomed to collapse…not IF, but WHEN.
The end result is chaos on many fronts….then what ?