Canada is BROKE.

in #life7 years ago

A very important chart for Canadians to have a look at. This chart shows us how Canadian household debt is at an all time high. For every dollar of disposable income Canadians have they owe $1.70, showing a rate of 1.7

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A rate of 1.70 is very alarming. The US banks (and entire economy) crashed when they could not sustain a level of 1.3. Canadians have extended their borrowing another %30 beyond this. The US economy has still nit recovered from this crash.

Why should you care? This illustrates how most of what Canadians own has been purchased on borrowed money. In economics there comes a point were borrowers are called on their debts. They do this through the form of rate increases on the money owed, forcing people to pay it back quickly or face bankruptcy.

The Canadian real estate market has been the biggest gainer with plenty of access to 'cheap' money. The majority of Canadians now own their homes (65-70%) and have been able to do so through the loose lending policies of Canadian banks and high risk lenders like Home Capital Group.

The second charts show how the US financial system had a major correction when the borrowers could no longer make their interest payments. The Canadian debt has surpassed the US's and has continued to grow ever since.

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Canada is BROKE.

Lightmaker