Canadians deep in debt and getting deeper

The Globe and Mail nicely sums up the current Canadian obsession with taking on household debt. This infographic has all the pretty charts related to the current situation in which current debt totals a record $1.8 trillion. Just over a trillion of that is Mortgage debt, with the other big growth seen in lines of credit and car loans.

One Trillion is a big number and it can be hard to visualize.  Here’s one way to put it into perspective:

If you spent $1-million every day, it would take you 2,740 years to spend $1-trillion.

Albertans carry the largest debt to income ratio followed by BC. It seems the nation loves debt, but the west loves it best.

Read the full article here.

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Nom Nom Nom
Guest
Nom Nom Nom

… might want to check your math. To spend a trillion dollars in million dollar increments on an annual basis, it would take you a million years.

A little scarier and incomprehensible.

NNN

Best place on meth
Member
Best place on meth

@1

It’s a million per day, not per year.

@petition
Guest
@petition

Condos in G.V – flat since 2009
Houses in G.V – up 47% since 2009
Houses on west side- up 81% since 2009

Does that look like a market driven by low rates to you guys?

crabman
Guest
crabman

@3: No, that’s what a market driven by “Millionaire Migrants” looks like.

http://blogs.vancouversun.com/2014/01/06/millionaire-migrants-the-numbers-grow/

Nom Nom Nom
Guest
Nom Nom Nom

@ BPOM… oops Monday morning misread.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

please sign my petition. i am just 99 signatures away from 100.

Provide citizens of the province with free or subsidized mandarin language classes, so that we can better adapt to a changing world.

https://www.change.org/p/christy-clark-provide-citizens-of-the-province-with-free-or-subsidized-mandarin-language-classes-so-that-we-can-better-adapt-to-a-changing-world

Son of Ponzi
Guest
Son of Ponzi

#6
no petition necessary.
The smart ones will learn Mandarin on their own as a matter of survival.

Dave
Member
Taking off from the prior thread… on media. How many people here would say they know more about the housing market from reading the housing blogs and forums versus listening to local media? And to change the question slightly…. Where do majority of people get their information about the housing market? Blogs or local media. I would suggest that people who make the effort research and read things on them own are better informed than those who get information from the media. Yet, most people don’t do that. In the prior thread, Patriotz called out the media for not telling things properly and that’s probably a thought shared by some here. But I think that anger is misplaced. I think you should be angry at people for not trying to research things themselves because that’s really the only way to… Read more »
Dave
Member

An example of poor media recently was the oil spill in Burrard Inlet. One one hand all the greenies and local politicians tried to portray this as an ecological disaster. On the other hand, the experts in government and such said it was all manageable. The media will never put the onus on non-experts to back up their claims. But why would they? It would kill their story. So don’t ask those making outrageous claims tough questions, but demand it from those on the other side.

Why not ask the protestors at SFU how an oil pipeline running through the mountain is going to damage the ecology on top of the mountain? Why aren’t they protesting all the trees being cut down to build new condos and schools?

Royce McCutcheon
Member
Royce McCutcheon
@Dave – We all do need to take responsibility for ourselves, so I understand completely where you are coming from. But there are only so many hours in the day. Even if bad luck (e.g. chronic illness of a family member) doesn’t come along to use up your limited bandwidth, there are only so many places you can apply yourself for effective learning. Since home ownership is likely the largest financial transaction you’ll ever make, it seems intuitive to apply yourself to learn more in this area in particular. That motivates my education on this topic. But things like other investments, voting decisions, parenting and relationship choices, and our personal health are also topics worthy of very significant attention and effort. Yet we do not consistently manage all of these topics well either. And as available information multiplies and grows… Read more »
franko
Member
franko

@7
” The smart ones will eat Mandarins on their own as a matter of survival ”

Personally, I find them hard to digest and it sounds like I’m not the only one.
http://forums.whirlpool.net.au/archive/1680330

Dave
Member

Royce, I agree. You can’t figure it all out on your own and time is limited. But, the news isn’t going to solve that problem either.

I would argue that an hour reading blogs (and self learning) will go further than watching the News Hour for an hour a day.

Royce McCutcheon
Member
Royce McCutcheon
@12: Oh, absolutely agreed on the last point. But you need to get to the right blog, you need to have the context and broader knowledge to discern who is selling snake oil, etc. But if your government, the news you watch to keep you informed, AND your friend/family network (with vested interests) are all saying things are okay, are you really going to use your limited time to do the exploring? I don’t think it will happen for most people. In the bigger scheme of things, I don’t think it’s too much to hope that government, who should be less focused on re-election and more focused on policy, and media, who should be focused on holding government accountable and fact checking BC, should have done a better job on this topic. (I am, of course, not naive as to… Read more »
vangrl
Member
vangrl
mostly from comments on articles, people that have sold or have just bought or are out there looking to buy. ex.. Kilby “Bit off subject but up until 2 years ago we were renting a new condo on the water in North Vancouver at the foot of Lonsdale. It was owned by three partners in China and managed by a local company that specializes in holdings of off shore here in Vancouver. We paid $1,600 a month rent, they paid around $550,000 for the place 4 years ago, I just got an e-mail from a real estate company featuring a condo for sale, same size, same building……$399,000 asking. Things are not rosy for all Vancouver real estate.” brian “Port Moody townhouse is sold! We payed 428K in 2007, and a greater fool just payed 462K for it. Its a dismal… Read more »
Dave
Member

Royce, you’re correct is seeing me as a ‘personal responsibility’ kind of guy. So, I think we need to blame ourselves more than we should blame the media or others. For example, politicians will stop the PR speak when we stop being affected by it, whether or not filtered by media. The media will stop it’s focus on inflammatory issues the minute we stop caring about them.

I think the Economist is a good example of good media. Their readership is looking for quality reporting and they deliver to those expectations. The Province and Sun report about stupid things because that’s the market. Media is at least Democratic in that respect.

Long post short, I don’t expect most people to do that because most people are dummies.

patriotz
Member

@8: “In the prior thread, Patriotz called out the media for not telling things properly and that’s probably a thought shared by some here. ”

The context was TV stations. TV stations are granted licenses of valuable airspace on the understanding that they have an obligation to serve the public. On top of that, the CBC gets tax funding. They are not just private businesses, and the public has every right to call them out for not doing a good job.

patriotz
Member

@14: “When my grandmother passed away and we sold it there was a bidding war of only foreign buyers wanting to tear down and rebuild. We didn’t want it to go down but no bidders wanted to keep this old beauty. Frustrating beyond belief! I would have loved to have lived in that house with my family!”

So why didn’t you? Let me guess, the other heirs wanted to get top dollar for the property.

patriotz
Member

@10:

“A gaffe is when a politician tells the truth – some obvious truth he isn’t supposed to say.”

Michael Kinsley

ostritch
Member
ostritch

I’ve sat behind the mirrored wall for financial focus groups. Most people just don’t get it. Then there’s a layer of shame/embarrassment/ denial covering the not getting it part. And another layer not getting that.

It’s really “unfair” to punish people for being the way they are. I guess it evens out when you consider that the smarter you are, the more research you do, the better off you “may” be. And I say may in quotes because many an ignorant person made money in this housing market. And many a wise-guy read and posted to financial blogs and totally missed the boat.

So like diet and exercise, doing may be much better than learning, thinking and analysing.

ostritch
Member
ostritch

BBC Biz News last night: China drops interest rates. 3rd time since November, when I think it was that they really started coming back to this market. BBC reports many more drops to come.

WSJ weekend edition: US jobs recover. Fed interest rate hike suspected to be back on the horizon for June.

Now these two things going simultaneously and over the next 18 months will be very interesting for the real estate market here. This is where you may see the none-too-bright indebted Canadians lose out big time and a decline in condo prices. Maybe. While SFH keep their same trajectory. That would be very sad and very bad for locals.

Royce McCutcheon
Member
Royce McCutcheon

@19: “So like diet and EXERCISE, doing may be much better than learning, thinking and analysing.”

I know a couple physiotherapists who might look at their client rosters and have a different take on this. 😉

ostritch
Member
ostritch

Not exercising leads you to the same injuries anyway. Underuse injuries. I should know. 🙁

vangrl
Member
vangrl

over 10,000 signed the petition now, it must have been in a news release somewhere cuz it’s jumping up like crazy in the last hour or so

Shut It Down Already
Guest
Shut It Down Already

” It’s pretty easy to figure out who they’re marketing to.”

Developers?

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@vangrl

which petition are you talking about? there are two.

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