In this video, I talk with author and economic analyst John Sneisen about the soaring bankruptcies in Vancouver which are up 17.94% since last year.
According to Business Insider,
"The OSB received 184 bankruptcy filings in June 2017, a 17.94% increase from the same month last last year. Total assets in these filings add up to $5.09 million, vs $17.32 million in outstanding liabilities."
Total insolvencies are up 2.43% as well.
As John notes,
"People are indebted. People went on a debt binge when the Bank of Canada was lowering interest rates. When everyone's borrowing money in different businesses, what happens is over time when you over extend and there are several competitors in one business and everyone is borrowing, there will be a problem where some of them will go bankrupt because they're all fighting over the same dollars, the same principle to pay off the interest that doesn't actually exist in the first place. So they have to go out and try to find venues to find this new currency but the problem is they are all fighting in the same circle, and then suddenly there's not enough of that money anymore to feed one or two of the competitors in that market and then of course they lose."
We will see more and more of this popping up where people are scrambling to pay off their massive amounts of debt that they've accumulated because of the cheap currency created at the Bank of Canada. Then there's also policies in place that push businesses to start something they probably shouldn't have started because they got government grants.
It's normal to see bankruptcies in Canada because most businesses don't make it through their first couple years. The regulatory and tax burden is alarmingly extensive, and it constantly grows.
This debt will continue to increase as interest rates go up and currency is created out of thin air. People with variable mortgages or loans, their debt is going to become more and more costly to service. This will build up slowly and then eventually we will see a massive crash.
As the debt collapses within real estate and other markets, it trickles everywhere into the economy and people had value that they don't have anymore that they used for collateral on certain things.
"People go to declare bankruptcy and they have collateral and their house is suddenly worth about 50% of what it used to be.
This is a deflationary pressure on the economy. The Canadian government desperately needs inflation to pay off its debt so this may be a pressure that will lead into much more currency printing and quantitative easing in the future. "
This is all the more reason to be financially responsible and self sufficient!
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Same thing is happening in the US albeit in different sectors. The oil industry was crushed a few years back with massive defaults. Now, not surprisingly, it is retail in the crosshairs. In the US, credit card debt exceeds the pre-collapse levels from a decade ago. Subprime car loans turned south over the past year. And student loan debt is over $1T with no end to the increase in sight.
Many talk about the Federal Government's debt but that is nothing in comparison to the ability to pay the present debt load that individuals are carrying.
Thank you for the video.
Yo ,
Thanks for the great content
https://steemit.com/ikigai/@horus149/ikigai-the-reason-to-get-up-in-the-morning
Nice interesting insight. Thanks.
So why isn't early age basic financial literacy taught in taxpayer supported education?
Who wins when this info is withheld?
Who runs the world?
Oh, right...
What all of the sheeple keep missing is that this was an inside job , and what I mean by that is that the ILLUMINATI aren't that smart . They've been blinded by their ambition and hubris . And a group that IS smarter pulled them in . I know it may be hard to understand , but if you read strategies like THE ART OF WAR you can begin to see methods and ways of disarming formidable opponents by using their own arrogance against them . Look PUTIN is one of those students , and if you look at the war in Syria 🇸🇾 , and Iraq 🇮🇶 you begin to realize that he formed many pockets and allowed ISIS to take those pockets , and then he closed them , cutting OFF those held in the pocket . Then enialating them . Its really basic war fare strategy 101 . Flanking maneuvers , and cutting off a retreating passage are all very viable strategies . The same has happened with this financial war . Both China and Russia have been planning this BRILLIANT strategy , but they could have not done it alone , so there is a group on the inside that has helped . And American Zionist are in a KILL POCKET right now , but its already too late . By the time they even formulate a retreat , they will simply get SLAUGHTERED . Grab some popcorn , because this will make GAME OF THRONES look like a happy meal birthday party at McDonald's . Thanks for the update .
I grew up in the Vancouver area. It disgusts me to see just how average people like my family are getting priced right out of my hometowns in the surrounding areas. There are going to be tens of thousands, maybe even hundreds of thousands of families in that area that are going to get wiped out financially over this mess. The sooner this garbage bubble bursts, the less pain there will be. I just hope the bubble bursts sooner, rather than later!
Average house price in the suburbs ( Surrey B.C. )about 10yrs ago was 250k that same house is almost hitting 1 million now! Its crazy here!
Save your money, live with your parents. Suffer the social denegrations and then buy when you can when there are a lot of houses on the market and you save a million dollars. Yeah right. I feel Canadians will have to retire in Thailand or Mexico.
The Banksters and their politicians decided about 30 years ago to abandon about 80% of the population and are now trying to save the 20% that won in the neoliberal casino. Most every policy now is geared towards benefiting the top 20% of income.
It's easy to prove what I'm saying: the one very simple and easy thing the feds could do is put the tax exemption at 24,000.....Yet they refuse to all the while initiating tax policies that transfer what wealth is left to the top 20%....
And yes, many many Canadians including myself are now looking for avenues of escape as inflation and the cost of living rises beyond anything our pensions will provide.
I've even joked that the real wall in the future will be on the Canadian border as seniors try to flee to the alleys and underpasses in the southern U.S......
Hey, but after all, it is the asiancanuckistan of Israel, right?
Why, when you can move to Panama and pay hundreds of thousands less for houses?
Your reply assumes seniors have surplus disposable income. But yeah, Panama is still in the cards, but it doesn't change the dismal inflationary conditions here.