Quote:
Originally Posted by chemgear
|
Quote:
Originally Posted by pepper24
http://www.theglobeandmail.com/repor...rticle1837383/
Though interest rates aren't likely to rise until about mid-2011, policy makers are worried that too many Canadians won't be able to handle higher payments when they do. Moreover, the longer that rates stay low, the more abruptly they may need to rise to curb inflation when the economy improves.
The ratio of household debt-to-disposable income reached the highest on record in the third quarter, at 148.1 per cent, Statistics Canada said Monday, a 6.7 per cent rise in Canadian household obligations from a year ago. The ratio tops the 147.2-per-cent ratio in the United States and comes as incomes fell 1.5 per cent during the same three-month period.
148.1 is scary as I believe 20 years ago Canadians were in the low 90's. I still don't see this ending well.
|
To be fair, it's not exactly new - I posted the above back in May. It was 144% at the end of 2009. I believe the bulls figured it was a shift from historical fundamentals, something new (and ultimately sustainable?)