Quote:
Originally Posted by Bownesian
Source data - Source: Statistics Canada, BMO Capital Markets Economics
Source data - Statistics Canada, BMO Capital Markets Economics
Since we've had 25 years in this situation (falling interest as a % of income, asset value rising faster than debt), it's irrational to expect that this is a bubble that is due to pop. |
I don't think it is due to pop either, because it is almost too big to fail at this point.
Catastrophe is probably too mild a term for what would happen to the Canadian economy with a 5℅ interest rate spike.
Canadians are slaves to their debt levels and if they stop buying things because their credit has dried up we are all in serious trouble.