Quote:
Originally Posted by cmyden
Did we dodge the meltdown or just delay it? Remember, Canadians took on a lot of new private debt in 2009 to keep the party going.
And instead of bailing out the banks, we kind of gave them a 'pre bailout' via the CMHC policies.
A good read:
http://www.progressive-economics.ca/...hurts-so-much/ |
Good points but at the same time what other choice did we have? The move also helps maintain equilibrium - invest / spend in downturns and try and save in upturns. My question is that should there be an upturn do we have the capacity to erase those debts and actually save? The americans are the worst culprit of not saving btw. They spend on upturns and go into debt on downturns. Downward spiral model.
PS it's cheaper to invest / spend during downturns, and our purchasing power is very good right now.