Canadian bankruptcies spike in October 2008

[Jason]

According to the article published yesterday in Toronto Star, Canadian bankruptcies surged by more than 20% in October 2008.

Close to 10,000 bankruptcies were filed in October by both Canadian businesses and consumers. This is an over 7% increase compared to the previous month and over 21% increase year over year.

Most of the filings were individuals (close to 9,000), which is close to 23% higher compared to October 2007.

Here is the original source:

http://www.thestar.com/Business/article/548493

All this looks very depressing, and doesn't bode well for the Canadian economy. I guess many people are being crushed by excessive credit card debt, huge mortgages and high interest rates on bad credit loans, payday loans and the like.

[Canadian]

I'm not surprised the least, with all the excessive borrowing and the various bubbles created by it in the last 10 years. I also think that we'll see much bigger increase in bankruptcies in Canada very soon, due to falling real estate market, credit card debt, and rising unemployment.

[bullish]

If you compare the bankruptcies increase in Canada and US, you'll see that ours is nothing special. Canadian banks enforced much more stringent lending rules, that's why we didn't have the irresponsible borrowing the US had. I think Canadian bankruptcies will peak very soon, when there are the first signs that the economic recovery is underway.

[trent]

Originally Posted by bullish

If you compare the bankruptcies increase in Canada and US, you'll see that ours is nothing special. Canadian banks enforced much more stringent lending rules, that's why we didn't have the irresponsible borrowing the US had. I think Canadian bankruptcies will peak very soon, when there are the first signs that the economic recovery is underway.

This is simply because we are 1 or 2 years late compared to US. Don't forget that our crisis just started.

[sunshine]

Originally Posted by Jason

According to the article published yesterday in Toronto Star, Canadian bankruptcies surged by more than 20% in October 2008.

All this looks very depressing, and doesn't bode well for the Canadian economy. I guess many people are being crushed by excessive credit card debt, huge mortgages and high interest rates on bad credit loans, payday loans and the like.

This is no good. 2009 will be even worse. I foolishly hoped that when 2008 is over we all will be better off... How stupid of me. I am starting to think the crisis will go deeper

[trent]

It will get much worse, before it gets better. Lots of unpayable debt must be liquidated through personal and business bankruptcies, and Canadians once again must become savers and start building real wealth instead of relying on fictions house appreciating to finance a lifestyle they would never afford.

[ggonzo]

Originally Posted by sunshine

This is no good. 2009 will be even worse. I foolishly hoped that when 2008 is over we all will be better off... How stupid of me. I am starting to think the crisis will go deeper

The real estate bubble that was inflated for so many years is bursting but it will take probably the same period of time everything to get back to normal - to even out. We can't expect a steady rise in the prices for 7 years and to wish the crisis to be over in just a year.... It is unrealistic

[Canadian]

Originally Posted by sunshine

This is no good. 2009 will be even worse. I foolishly hoped that when 2008 is over we all will be better off... How stupid of me. I am starting to think the crisis will go deeper

I tend to be an optimist, but even I don't see anything positive for 2009. 2010 maybe?

[trent]

I expect the number of bankruptcies to increase sharply compared to the last year. Canadians don’t have the capacity to service that much debt, and the way out is bankruptcy.

[bullish]

Why is everybody so negative on this forum? It seems like you are enjoying the economic downturn and you are hoping to get worse.