Canada's household debt improving!

[justincase]

Canadian household debt-to-income ratio slips: StatsCan

“With interest rates expected to rise further and housing regulations tightening at the federal and provincial level, the peak in debt growth could very well be behind us,” Nye wrote in a report.


https://globalnews.ca/news/4085367/cana ... ome-ratio/

[JagXKR]

Yeah because 170.4 percent is way down from the previous quarter reading of 170.5 percent. Hence the exclamation point in your headline. Huge change! Great news!
But reading the article has this:

“While it’s too early to tell, we just might have seen the peak in the debt ratio in Q3, as Q1 will no doubt see a sizable decline due to seasonality,” said Benjamin Reitzes, Canadian rates and macro strategist at the Bank of Montreal

Too early to tell? Might have seen the peak? Yep definitely worth the ! in the headline.

[ninetyninepct]

170% is stupid. The GDP is only doing OK because too many are living on debt. Wait till we get a 1% rate increase or more and watch the flood of bankruptcies. House prices will collapse with For Sale signs everywhere. This will, of course, follow Trudeau's plan to sell Canada to his Communist Chinese donors.

This will be followed closely by Canadian Banks declaring they are at risk of failing and will fall back on Trudeau's"Bail In" legislation. He passed this shortly after the election and it will allow Canadian Banks to seize our deposits and investments and issue Bank stock. Worthless Bank stock from a failing Bank. He intends to turn Canada into a Greek dictatorship governed by Sharia laws and owned by the Communist Chinese.

If you are able, move your money offshore and/or out of Canadian Banks. Gold, silver, and cash are also a good idea. All it takes is a burp by America and Canada is acrewed. We should have been trading offshore for decades.

[hobbyguy]

Ummm... https://www.bloomberg.com/news/articles/2017-06-16/canada-proposes-new-bail-in-regulations-for-the-country-s-banks

Methinks you need to read that.

As interest rates rise, I do expect that we will see a reduction in consumer spending, it is natural - and with that downward pressure on GDP. The real estate sector is one to watch...

As for being cautious with investments, it is of note that the 3M LIBOR has been rising steadily for many months, and is now over 2.2%. Such a rise in the LIBOR preceded the last downturn, may or may not be signalling something, but if the big banks are getting tight with each other, it makes my nose twitch.

If anything is going to trigger a downturn at this point, watch for more protectionism from Trump. End of cycle disruptions like Trump's messing about with NAFTA, and potentially starting a trade war with tariffs could easily trigger trouble ahead.

[justincase]

Yeah because 170.4 percent is way down from the previous quarter reading of 170.5 percent. Hence the exclamation point in your headline. Huge change! Great news!
But reading the article has this:

“While it’s too early to tell, we just might have seen the peak in the debt ratio in Q3, as Q1 will no doubt see a sizable decline due to seasonality,” said Benjamin Reitzes, Canadian rates and macro strategist at the Bank of Montreal

Too early to tell? Might have seen the peak? Yep definitely worth the ! in the headline.

That's quite Condescending statement. The dismal economic policies of the former government are what got Canada into this economic mess. Household debt is at an all-time high because of the 40-years mortgage. A policy so poor, that even Jim Flaherty had to undo his own legislation less than one year after introducing it.
He then reduced amortization period to 35 years. This still made homeownership too easy for people with little means of carrying a mortgage. Trudeau has JUST changed the Liberal lending laws to a more Conservative approach and the results have been immediate!!!!! <- noticed the exclamation marks? Luckily Canadians made the right choice in 2015!

[justincase]

For anybody to peruse if interested!

https://www.statcan.gc.ca/pub/75-001-x/ ... 36-eng.htm