Canadian households are heavily leveraged and with their level of debt in proportion to income now hovering at record levels, they are vulnerable to a range of economic shocks that could create a financial crisis. I am of the opinion, however, that the range of variables at play discussed in this article would mitigate any possibility of a meltdown of Canada's financial system. Let me explain.
Read More »Canadian Households Extremely Vulnerable to Changes in Economy
In 1990, Canadians owed 85 cents for every dollar of annual disposable income. Today that number has grown to a record $1.63. Meanwhile, Canadians are saving just 3.6% of their incomes today – a drop from 12% in 1990. Rising household debt levels have some sounding the alarm.
Read More »Canadians Take Note: Country’s Economy Will Blow Up If This Event Happens There
With interest rates being pushed lower year after year, interest expense as a % of disposable income has been declining in Canada and, for the moment, these low interest rates keep the whole thing glued together but, were interest rates to ever rise, Canada's economy would blow up. Here's why.
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