An interesting article by Mike Shedlock summarizing the recent Canadian household debt situation: Canadian borrowing gone mad.
Theory has it that Canadian banks are in far better shape than their US counterparts. If so, it’s primarily because the Canadian Central Bank (Bank of Canada) has assumed nearly all the default risk on Canada’s massive property bubble.
Is that supposed to make everyone stand up and salute the Loonie?
One key point that has recently come into the spotlight is Canadian citizens are not in better shape than their US counterparts. All those going “rah rah” over the Loonie, might be advised to consider some of the following articles.
Read the full roundup over at GlobalEconomicAnalysis.