"Canadian banks at risk" - Bank of Canada

[Canadian]

BoC published a report warning that the Canadian banks are at risk due to high and increasing levels of debt Canadian have, and mounting job losses amid the global recession. The balance sheet of the average Canadian has deteriorated significantly in the past year, which prompted the bank to issue the warning.

I guess we are not that different than US after all. The high level of debt will bring the overvalued Canadian housing market down to its knees, something I am looking forward to. This will make housing more affordable and give savers the advantage they deserve. By the way the Bank of Canada also says that it expects housing decline in Canada to continue this year .