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.