Close your eyes and load up on debt

This National Post commentary is one of the most direct attacks on Canadian personal debt levels I’ve seen in the mainstream media.

The takeaway is this: YOU are responsible for your own debts, don’t go whining to anyone if it gets you into trouble.

It’s mindboggling to think that an entire population can look at what happened in the US when personal debt levels got this high and shrug it off.

Analysts and economist are filled with forecasts of doom, and that was before the latest figures showed debt had continue to pile up over the past year to a record 163% of household income, which is where the U.S. was before the 2008 collapse, and about 10 points higher than anyone thought. As the housing market cools and home prices slip, a lot of people could find themselves making monthly payments they can barely cover for a house that isn’t worth what they thought it was. If you can’t cover the mortgage, you just have to pray the roof doesn’t start leaking or the furnace fail.

And borrowers won’t really have anyone to blame but themselves. The warnings are out there. The examples are rife: all anyone has to do is examine the experience of U.S. homeowners over the past few years. The dangers aren’t a secret, they’re just being ignored.

But people keep borrowing, because it makes them feel good to spend, because they’re too busy to think about it, because they figure they can cover the payments in the short term and will deal with the future when it comes. And because they can always blame it on someone else when the roof caves in.

Read the full article here.

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Anonymous
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Anonymous

@Ghandi: “This is a fun forum except when people start bringing in race.”

Agreed. People with low self esteem and little self worth like to blame all their problems on other races. What they need is a mirror to figure out who to blame.

MrV
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MrV

Heard an ad on radio today – we will lend you at low rate EVEN IF YOU OWE MORE ON YOUR HOME THAN IT’S WORTH. The last part of the phrase was literally repeated 3 times.. Businesses are starting to reach out for the ever-growing underwater cohort

Ghandi
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Ghandi

@604x: This is a fun forum except when people start bringing in race. Stay on target: speculation, not race, is key.

They want you to be distracted by the nebulous, nervous, and hurtful taboo of race because it distracts from the root cause of what ails Vancouver.

“Intolerance is itself a form of violence and an obstacle to the growth of a true democratic spirit.”

Now, kind friends, laugh at me and “dislike”.

Just Looking
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Hey folks, Sorry to take us off topic (Van RE Bears are right – bulls will see…) I thought some of you would enjoy this: http://www.facebook.com/canadafipapledge/info A pledge in support of the Foreign Investment Promotion and Protection Agreement between (FIPA) Canada and China. We as Conservative MPs want to eliminate public concern over the China-Canada FIPA and support the Prime Minister’s decision to sign the treaty without significant public consultation or parliamentary debate. We want the Canadian public to know that we absolutely stand by the value of this agreement to all Canadians. We believe strongly that, unlike the recent $2 billion arbitration claim by Chinese insurer Ping An Insurance Company against the taxpayers of Belgium, that Canadian taxpayers will never have to bear a burden of this kind under the FIPA agreement we have reached. We recognize that a… Read more »
anon123
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anon123

@Aleksey: So true. Know someone with some gains in RE and finally holding properties debt free.

What’s next ? Get a new mortgage using current properties to buy more “investment” RE.

Some COC get anxious when they have no debt and really believe prices will go up with no limit.

The news about the market are still not out, that explains today’s paulb numbers.

Rusty's Ghost
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Rusty's Ghost
@Aleksey: technically there is a connection to being caucasian if you are iranian or indian. so, you might just be right, unagiDon – though i’m sure you’d rather just troll some cakers. i prefer canadians on credit – most of my white friends refuse to buy real estate due to the horrible value and the fact that we were raised here; some are professionals with many years of school, making 75-100k and are still living in basements, low rises in the west end, socking away money, enjoying their lives, taking vacations, etc. we know our parents paid between 50-100k for their homes through the late 70s and 80s – we know that wages have not risen correspondingly, so therefore.. the whites (and many, many young chinese-canadians – though i reserve the right to mock any and all hyphens if i… Read more »
Aleksey
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Aleksey

@UnagiDon:

TRUE. At my workplace most of the people own their houses. It’s including a lot of Chinese (born in China and Canada), Philippines, Iranians, Russians, British, etc. All of them bought houses with credit. Most of them still carrying a huge debt. I rent and don’t have any debt. And I’m Caucasian.

So, it’s not about skin colour. It’s about average Canadian who can’t stop spending and still thinks that it’s different here.

painted turtle
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painted turtle

An earthquake with magnitude 6.2 occurred near Prince Rupert, BC, Canada at 02:49:02.70 UTC on Oct 30, 2012

IamTheChimpman
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IamTheChimpman

I TOLD you SHITBIRDS that sales were set to SPIKE.

Don’t say you weren’t warned.

Chimpman

UnagiDon
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UnagiDon

@604x: “c’mon you pussies, CoC really does mean Caucasians on Credit. It’s funny cause its true!”

I’m white and my brother in law is asian. I was born outside Canada, he was born in Canada. I rent, he owns. I could live for several years without working on my savings and investments. He’s been using his HELOC to pay the monthly bills.

To me, CoC = Canadians on Credit. My family illustrates this point quite vividly.

604 Receding Gains
Member
604 Receding Gains

c’mon you pussies, CoC really does mean Caucasians on Credit. It’s funny cause its true!

And HAM, it means recently arrived Chinese with more money than brains (earned through ill-gotten gains) throwing it around on real estate like drunken sailors. Paying for one Baby Boomer pension at a time with each house purchase. The whining CoCs will look back one day (after the melt down) and all wish the HAMers were back in town.

What’s the point of having a bulletin board-style blog with anonymous names if you can’t throw some condescending stereotypes around (which happen to have a ring of truth)!!

/dev/null
Member
/dev/null

@Ben Rabidoux: You could look into Google+ for the webcast. Their hangouts are really slick and its simple to use – no software to install or anything. Anyone with a Google account (i.e. Gmail account) can view. I use it all the time.

vangrl
Member
vangrl

“Why let Garth present your material when you can do it yourself”

speaking of, why pay Garth to be your investment adviser when all he does is buy ETFs and bank preferred shares??….talk about an easy portfolio, can’t believe anyone would pay him 1% on top of the associated MERs

900kCrackHouse
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900kCrackHouse

@sickooo: Yes – I have visited virtually every South American country except Colombia. I fell in love with Argentina as well when I was there. It would be a fabulous place to retire.

sickooo
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sickooo

@900kCrackHouse
did you travel there to have a feel for it?

i was in Buenos Aires 12 years ago and liked the lifestyle very much. but i have already established business here so it is hard to just leave everything and go. but as soon as i retire, and i am planning retiring in 55 i would consider moving somewhere south.

Hairy Gerry
Guest
Hairy Gerry

Here’s another beauty. Most of us know that deflation isn’t what’ll get us. At least not if the governments and those that control the money flow have their way. We know that by the so-called “quantitative easing” approach. I went to what can be considered one of the cheapest grocery stores here in Calgary to buy a couple things. I bought 4 potatoes and the smallest bottle of liquid washer detergent I could find on the rack. 9 Bucks…

900kCrackHouse
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900kCrackHouse

@sickooo: Brazil or Chile… Chile especially has a low tax, low debt structure are are well setup for future success. They don’t have the problems of an aging population and you would surprised what the take-home pay of an educated professional is in some of these countries. After tax income can be often higher or much higher than here. Especially if compared with Vancouver.

Patiently Waiting
Member
Patiently Waiting

The other night, I went to a highschool unofficial reunion get-together. Thanks to social media, way more people showed up then expected. 🙁 Including some we didn’t really know.

One guy walked around the room (dressed all businesslike with a big smile), polling everyone on whether they were married and had kids. Then he said he has a big suburban house, two kids, and all the middle class toys. I thought “Yeah, good for you, buddy. We probably never had one conversation in highschool and now you care about my family life for some reason.” 😛

I didn’t stick around near enough to hear what he did for a living. Next day, I looked him up online. Ah yes, a mortgage broker. LOL.

Hairy Gerry
Guest
Hairy Gerry

Just had another disagreement with a roomie here in Calgary about the Van Re market. He owns a home in Coquitlam. Doesn’t see any correction happening there. Did I tell you that he can’t find any work there as an architect and that’s why he came to Calgary? Told him I was willing to bet money it corrects more than 25%. He says no….I said I’d make a wager to say that it’ll happen at least that much over the next two years and if I’m wrong I’d pay him. Wouldn’t go for it.

sickooo
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sickooo

900kCrackHouse ” thinking of escaping North America sometime ”

where you are going? it is the same everywhere more or less…you just have to turn off your TV and pick wisely your circle of friends and you will avoid all consumer porn

900kCrackHouse
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900kCrackHouse

I still laugh whenever I read of CoC’s on this board.

So sad but so true. I’m caucasian, and thinking of escaping North America sometime in the next 10 years to avoid the unfunded liability crisis that is going to hit when CoC’s get off their credit fix and start going into convulsions.

900kCrackHouse
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900kCrackHouse

@Ben Rabidoux:

Sounds great Ben. Why let Garth present your material when you can do it yourself. 🙂 I’ve signed up.

kenny
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kenny

LOL Coc’s in the IPhone lineups…

Anura Femur
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Anura Femur
s
Guest
s

@ bull bull bull

except this time the government is out of bullets.

drop lending requirements again, people will choke on debt within a year and collapse the economy more when it comes time to pay back.