Heading into a recession with record debt

Troll posted a link to this article: Canadians are getting carried away with debt in the current low interest rate environment and may be particularly unprepared for a recession.

At the Toronto edition of the MoneyShow last week, TD deputy chief economist Derek Burleton warned we are in a “balance-sheet recession that will take years to shake off.” As a result, Burleton said, interest rates will stay “very low for a long time.”

At the same show, Danielle Park, of Barrie, Ont.-based Venable Park Investment Counsel Inc., told attendees to “keep your powder dry, pay off debt and use these record low interest rates to get debt free and downsize real estate sooner than later, where necessary: Canada has gone on longer than it ought to have in this cycle.”

So are you taking advantage of record low interest rates and loading up on debt or are you ‘keeping the powder dry’ in the assumption that we’re heading into another recession? As a nation we keep loading up on more debt.

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I was at McDonalds getting served by an Asian, at the same time whilst scooping up Westside properties for $2.5M without conditions.

Friggin ridiculous.

fixie guy

94 kansai92 Says: "Friggin ridiculous."

Your ridiculous is another person's green-conscious:



LOL — I love HAM.

At the same time whilst scooping up Westside properties for $2.5M without conditions, they're elbowing me out of the way to get at the $0.99/lb lychees at Superstore.

Friggin ridiculous.




I wouldn't hold my breath on a color reader. They're active screens, so harder on your eyes, you can't read them in direct sunlight and their batteries (although not miserable) require you to plug them in once every day or so. Kindles / Kobo use E-paper and use basically 0 power when you aren't pressing buttons, though the trade-off of course is that they haven't mastered color e-paper yet (dreaming).


@VMD: Um, so no new change and the variable tightens? That makes sense; the TED spread has been increasing of late.



"A one percent increase in listings per week only amounts to 52% in a year. :)"

68% actually. And that's not a nitpick. 🙂



True, many who bought many years ago when rents and prices were similar may think that (not an investment)

If you buy because the cost is similar to or less than renting you are looking at a house as an investment.

Not looking at a house as an investment means that you are indifferent to any return whether it be rental value or capital gains.

Investment does not simply mean buying something because you think you can sell it for more than you paid for it. That's speculation. #1 financial fallacy of our time.

macho nacho

@Jack: I'm always amazed by the people who are willing to drop $2 million+ on a home because it's in a catchment (I'm looking at you, HAM). If you got that kind of money to spend, is $15k/year really so hard to find for a private school? When you drop $2 million+ in elite areas in the U.S., it is almost a given that you're sending kids to private schools. Get the Dunbar home, the Bentley and then cheap out on school? What's up with that? Note that they also end up sending their kids to UBC (not that there's anything wrong with that, but don't the wealthy usually try to send their kids to elite colleges?). If you don't believe me, check out the $100k cars in the student parking lot.


[RBC will change interest rates on Sept 15 as followed:]

According to the RBC mortgage broker Jason Wang on the Chinese forum:

1. Posted rate for 5 year fixed decreasing by 20bps

(4 year fixed posted is increasing by 60bps? – need confirmation)

2. DISCOUNT ON 5 year variable rate closed decreasing by 20 bps from 45bps to 25bps

"Reason for changes: The competition has been very aggressive in moving their rates in the last few days and these changes were required in order to align ourselves with them to remain competitive in the market. Variable pricing needs to increase to reflect the continued increase in funding costs resulting from the global economic crisis."



@Jack: Read through a Chinese RE paper and count the "St. Georges" hits. Lolz will ensue.


Chip: Have you been in a library lately? People are not there for the books they are there for the computers Believe it or not there are a lot of people who do not own a computer much less a IPad or some other ereader so how can they download or borrow a book online? I was at the library last week the outside temp was close to 30 degrees and the place was packed with a waiting list to use the computer I think they had close to a dozen. That said I was thinking of getting a Kobo ereader so I could borrow books from the library online but I will wait till Kobo has the color version like Barnes and Nobles Nook. As a homeowner I do not mind my property taxes going to a library as… Read more »

Li Kai Shing

B.C. mobile homes selling for $1-million plus await buyers with deep-pocketed dungarees

Of course, these current real estate listings include acreage, too. Still, some of these properties are for millionaires who don't mind getting their hands dirty.



Listen VCI SOB's

I tired of be-ink yo' info freebie beatch.

Turn off TV,…unplug Beer fridge..reduce nacho intake…and buy into local Trailer Park !!

Trailer Park Boys??? = documentary on Real World !!!!.

Can you imagine Laundered $$$ buying 30 + year old mobile homes with BMW's , Mercedes and odd Ferrari/Lamborghini parked out front !

I can…you F#*king ungrateful troglodyte assh*les !


“others may just want to be in the catchment area of a good school.” Good schools: if you are referring to private schools on the westside such as Crofton House, York House, St. George's, Vancouver College, Little Flower Academy, there are NO catchment; you could live anywhere in Greater Vancouver; you just have to be smart enough and have sufficient money to get accepted in and pay for the school fees. Westside Public Secondary Schools: Lord Byng, Point Grey, Magee, Prince of Wales, Eric Hamber, Winston Churchill — like Patiently Waiting #84 said: "You can probably rent in Dunbar" or any other place near these schools. One doesn't have to buy in these neighbourhoods to attend these schools. Food for thought: If a family whose child has a 50% grade average at an Eastside school such as David Thompson or… Read more »


@Anonymouse: ….I stand by my prediction. A 1% increase is insignificant…..

I agree! A one percent increase in listings per week only amounts to 52% in a year. 🙂


@fixie guy: …Or is it only stupid when the left does it? ….

Hard to tell since anything the left does is always stupid.

Li Kai Shing


Have to waitink a-hole 24 hours for world class "Friday – Free – For – All" ….usual VCI intellectual porn- orgy.

I tink I watch " Friends" and "Malcolm in the Middle" re-runs, to get warmed up.


@fixie guy: How do you even bring Reagan into this?


"I stand by my prediction. A 1% increase is insignificant."

At what percentage increase will you acknowledge your ineptitude?

Or perhaps you will provide us with yet another definition of 'flat'?

Patiently Waiting

@Anonymouse: By renting some families can be near better schools than if they owned. You can probably rent in Dunbar for the cost of owning the same size house in Whalley.

Patiently Waiting

@RippedtoShit: Its the listings, not the sales, that matter most for the bubble burst. This is why the last couple months have been amazingly bearish. Later, when sales collapse, its just icing on the cake.



"Some may want the security of stability"

You have the same security and stability in a rental house. Just look for the right place and sign a lease that meets your terms.

"others may just want to be in the catchment area of a good school."

You can rent in ANY catchment.

"Not everybody looks on their home as an investment."

True, many who bought many years ago when rents and prices were similar may think that, but the vast majority who have been buying over the past few years are buying because they think the price will increase and make those massive mortgage payments worth it.

Li Kai Shing


" I stand by my prediction. A 1% increase is insignificant."

That's what your wife said durink honeymoon.

Li Kai Shing


Just when wanna send him sun tan lotion..special batch 888 with goose entrails and rooster shit.

lol cats

@Bubba Junior:
Hahahahahahha. Silly bears. This blog is good for a laugh.

fixie guy

@71 RippedtoShit: Is Vancouver's gr888t run finally over?