Canadian debt is now almost triple the size of the national economy. How did we get here? A decade long housing boom!
While Canada boasts the lowest government debt load among Group-of-Seven countries, household debt is the highest of its peers, the Basel, Switzerland-based BIS said last month in its quarterly report. In September, Statistics Canada reported household liabilities rose to 100.5 percent of GDP, exceeding the size of its economy for the first time.
Canada was the only developed country showing early signs of stress in its domestic banking system amid “unusually high” credit growth relative to GDP, the BIS said.
“This debt overhang represents one thing and one thing only: a pervasive constraint on Canada’s economic growth potential,” David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates Inc. said by phone from Toronto. “When you get to levels on total debt that makes even the Italians blush, you know you’re in a straitjacket.”
Read the full article over at Bloomberg.
What day is it?
That means it’s time for another Friday Free-for-all, our regulag end of the week news round up and open topic discussion thread for the weekend.
-unfortunately lazy admin didn’t get to the links..
But what are you seeing out there? Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!
The city of Vancouver has floated the idea of an ’empty home tax’ to help encourage the availability of rental supply. Today is the last day they will take feedback online for this idea.
If you have ideas for or against an empty home tax now is the time to have your input. What should be taxed and what should be exempt?
Best Place on Meth points out a rather obvious loophole and asks how it would be dealt with. Will there be baseline expectations for what is or isn’t market rent?
What’s to stop these owners from listing it for rent at some outrageous price that nobody will pay and then claiming they did try to rent it out?
What do you think – is the idea of an empty home tax a good or bad approach to Vancouvers housing problems?
Skook wrote in to let us know of updates to the Sunshine Coast / Bowen island stats.
I’ve added more posts to my stats blog. I have the Bowen Island September 2016 stats up. As well, I uploaded 3 Sunshine Coast December 2015 stats posts as well as a SC 2015 Sales Summary post. I’ll start uploading the SC 2016 stats as soon as I can.
It’s the end of another week!
Let’s do another Friday free-for-all, our regular end of the week news round up and open topic discussion thread for the weekend. Here are a few recent links to kick off the chat:
–RBC: sfh out of reach
–Slower growth or reversal
–Blissful ignorance stage
–Big market swings
–Interest rate optimism
–Change and pain
–Condo prices dropping
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!