Good News: Canadians Can Keep Borrowing
According to the Toronto Star, we can keep taking on more debt.
True to their Keynesian economics beliefs, even though several prominent economists, as well as the Finance Minister and Bank of Canada governor are ringing the alarm bells, we shouldn’t worry about debt.
We are ONLY at 153% household debt to income – even though the US crash happened at 160% (as did the UK)… there’s nothing to worry about here.
We have homes that are of value. TD Bank’s chief economist Craig Alexander noties that comparing a fixed statistic, which is debt, to a flow of income that is repeated annually, is a bit like comparing apples and orange groves. He also says that while Canadians may have high levels of debt, they have something to show for it — namely valuable assets like homes.
So keep spending, and adding on to that home equity line of credit. Home prices never will go down in Canada.
Nothing can go wrong, can it (?).
January 22nd, 2012 at 9:42 am
Seems like we are in a setup, media, academia, government, and international organizations wanting us to bankrupt ourselves. To what end?