Canadian households drowning in debt

[trent]

According to the Financial System Review released by the Bank of Canada Canadian households debt levels are climbing fast and putting Canadians under tremendous financial pressure.

The report also noted that weaker household balance sheets pose significant risk to the Canadian financial system because of the expectation of more loans going into default.

A quote from the report can be found below:

"Income growth has slowed, and personal wealth levels have been eroded by lower house prices in some regions; credit growth has continued to outpace income growth, contributing to higher debt levels."

The Bank of Canada also expects further declines in house prices this year.

[Canadian]

More house declines sounds good to me. If the Bank of Canada, an institution endorsing debt as a way of life if worried about the debt levels of Canadians than things are really, really bad.

[Canadian]

I don't see the promissed housing declines in Toronto.

[bullish]

I don't see the promissed housing declines in Toronto.

Of course you don't see them, and you never will. Our economy is much better of than the US one, and we will never have the housing vrash they had.