....and deeper in debt."
With apologies to Merle Travis, who actually loaded sixteen tons to get deeper in debt, looks like Canadians just like to good old spend, spend, spend.
It's all fine living the high life when things are good.
But delinquencies on credit cards and car loans are starting to add up as inflation & interest rates surge and the economy stalls.
So a lot of us Canadians are living the high life,,,but not paying for it.. A little wobble in the economy could send mortgage defaults soaring.
And this love affair with debt is nothing new for us.
Canada has the highest personal debt level per capita all of G7 nations. 75% of which is made up of those mortgages.
And whereas the two other highest countries in 2010 - the US and the UK - have actually reduced personal debt levels, Canada's has increased substantially.
Here is another view that shows it in a more meaningful way. Personal debt as a percentage of disposable income.
Again, Canadian's lead the pack in that we have debt at almost double the level of our disposal incomes!
I think that's called mortgaging your future.
Why are we so in debt compared to every other major country?
Labour productivity is one reason. With the exception of Japan (who is a very insular, cradle to grave employment type of country) Canada trails the G7.
Not a good combination. High spending and debt without the productivity gains to pay for it.
I foresee camels on the Canadian horizon.
If you are going, what the heck is he talking about, click Camels On The Horizon
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