7 Responses to “November 8, 2019”

1. skeptical says:

   November 8, 2019 at 11:56 pm

   Regarding bankruptcies…If people have trouble paying their creditors with record low rates, just imagine what would happen when interest rates do rise.

   I wonder how many of these are from AB and SK where over extended consumers have to deal with the commodity bust entering its fifth year.

2. jiHymas says:

   November 9, 2019 at 12:09 am

   If people have trouble paying their creditors with record low rates, just imagine what would happen when interest rates do rise.

   Yes, that will make the Bank of Canada very cautious when it commences tightening again.

3. malcolmm says:

   November 9, 2019 at 12:56 am

   The most frequent ads I hear on my local Vancouver radio station are ads for insolvency trustees and for “own your home – borrow money from us” companies. Canadians are far too comfortable with high debt loads.

4. mbarbon says:

   November 9, 2019 at 12:28 pm

   A lot of young folk I know want to buy now to “lock in these low rates”.
   No concern for where rates will be in 5 years !!!

5. jiHymas says:

   November 9, 2019 at 4:27 pm

   One thing I would like to see is some historical data on just who it is who goes bankrupt.

   University costs are much higher than they were when I was a student, which has attracted some attention over the years; students graduate with a lot more debt than I did. I’ve met at least one millennial who declared personal bankruptcy rather than repay all that money while living in Toronto on not much more than the minimum wage.

   How much of the increase comes from this source, rather than from the people we’re talking about here, who have good – or at least reasonable – jobs and have overspent on houses and consumer goods? I’ll argue that bankruptcies by 30-year-olds have less economic impact than the 50-year-olds, because the numbers for the former are smaller and the latter will have to sell their house at whatever they can get.

6. dodoi says:

   November 13, 2019 at 8:43 am

   Yes, that will make the Bank of Canada very cautious when it commences tightening again.

   “It’s not the Bank of Canada’s job to fix bad decisions consumers make with regard to debt loads in the current low rate environment, Stephen Poloz says.“. (first paragraph in https://www.cbc.ca/news/business/stephen-poloz-says-bank-of-canada-not-responsible-for-record-debt-1.3268738 )

   I would love to see it and someone to remind it to him.

7. skeptical says:

   November 13, 2019 at 1:10 pm

   Ha Ha Ha. Bank of Canada’s number 1 job, despite their protestations or claims otherwise, is to keep the health of Canadian financial system intact.

   If a handful of consumers default, well, they should have been more careful. But if 2 to 3% of people begin to default, it would suddenly become Mr. Poloz’s problem. And he’ll come around to save all the banks without thinking of any consequences.