- the source for market opinions


March 28, 2019 | Make Canadians Solvent Again!!

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

Canada is attracting international attention for our garish household debt levels.  Not a good thing to be famous for! What a difference a decade of lax lending and low rates makes.  In 2008, we were one of the countries that looked relatively prudent in our finances.  That was then.  See:  Canadians are Feeling the Debt Burn.

Meanwhile inverted yield curves squeeze the bread and butter spread of banks and other lenders who rely on borrowing short at lower rates and lending long at higher.  This means they tend to make fewer loans (and fewer profits) and refinancing is harder for homewowners to find even as mortgage rates move lower.   Not surprisingly, trustees in bankruptcy have entered a boom phase.

Canadians are increasingly feeling the pinch from rising rates, with insolvencies back on the rise. For more on how consumers can avoid falling into dire straits, BNN Bloomberg spoke with Scott Terrio, manager of consumer insolvency at Hoyes, Michalos and Associates. Here is a direct video link.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

March 28th, 2019

Posted In: Juggling Dynamite

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.