Financial Post- Canadians’ interest payments are growing at a record pace
Canadians are now paying 45 per cent more interest than they were a year ago, the fastest increase in records going back to 1990, Statistics Canada said on March 13.
Interest payments totalling $33.2 billion rose 14.1 per cent from the quarter before, surpassing the record increase set in the third quarter.
Nor is there any relief on the horizon. With interest rates likely to remain higher for longer, debt servicing costs are expect to continue rising and not peak until the second half of 2024, said TD economist Ksenia Bushmeneva.
Sure would be nice if I got an interest increase on my modest investments.
Shut up and pay another 45% increase in inflation. Oh! Interest rate increases aren’t counted as inflation? Tell that to all the people struggling to make credit card payments that have exploded since consumer inflation started crushing most people’s modest wages. The people who have been living on their credit cards for the last are being crushed by the Central Bank’s “corrective actions” after flooding the country with dollar … hence diluting the value of each Looney.
Yeah … this is the result of, and the fault of, a DECADE of suppressed interest rates … primarily to prop up the Obama Socialist presidency. The Obama racist presidency. Oh … and the Castro Premiership in Canada.
Welcome to the 1980’s again
I really don’t have a grasp on this ‘bank collapsing ‘ stuff, but do we have this right?
That 33 + Billion went right into the banks that will soon be collapsing…???
And out of our purchasing pockets.
Am I right?
“The budget will balance itself”.
The bank that collapsed owns a bunch of bonds that predate the interest rate increases. When new bonds are issues which pay higher interest rates, the old ones paying less interest are now worth less money because why buy an old bond paying one percent when you can buy a new one paying 5 percent? Now the bank has to sell assets to pay off depositors, but the assets are worth less, then they run out of money. People with job titles like “risk manager” are supposed to ensure this doesn’t happen, but SVBs risk manager was to busy being diverse and gay to worry about her job so this apparently got missed.
The bankers knew this. Why do you think they sold shares recently?
Although dangerous, the policy of mark to maturity is openly encouraged by regulators. If marked to market was mandatory, most pension funds today would be instantly insolvent, along with most banks. The idea of accounting as the art of wishful thinking is unfortunately very popular these days.
You must be an oldie timer … you don’t understand the “new economy” … the “new monetary theory” which posits that “the government can create all the money it wants or needs … any time it wants … and every dollar retains the same value”. No problem.
How is this different from printing millions of counterfeit $100’s in your own basement? Shut up and don’t ask any more stupid questions.
Bargain hunting is the way to do it. I’d just be happy you got back OUT. Because I don’t see any structural solutions coming down the pike.
Oh! And BTW … Joe Biden is proposing a 45% tax on capital gains … so your kids may have to stay home for vacation.
Dont blame Trudeau or Singh. Canadians voted for this. Haha.
Canadian elections are like Canadian courts.
You know there is a Liberal there somewhere in the woodwork with their finger on the scale.
Dominion left long ago after they decided that Liberals in Montreal, Toronto and Vancouver had perfected the art of stealing elections.
Conservatives meanwhile, have yet to figure out that 30 years of those Conservatives =Nazis=Criminals chickens are coming home to roost.
Or notice that the American Way now includes dollops of DOJ love visited upon your Republican/Conservative political opposition, including Courts, Atty Generals, Midnite Swats, Perp Walks, Hard Time and Lives Destroyed.
Ably ignored by the Canadian Media, I might add.
Which should help indicate who may be next.
Nothing and nobody protects you from those you should fear most.
Your Government.
It’s the Communist Way coming to a Canada near you, brought by your friendly local Liberal Communist party.
Their progress?
Canadian Constitution-recently shown to be the joke it most certainly is- see convoy commission big joke.
Canadian Courts- oh please- see above.
Canadian History- Winston continues apace.
Free Speech- disappearing faster than Twinkies at a Fat Farm. (OMG did I just say that?)
Media- it is to laugh. Or cry.
Guns- Liberals lust after your guns almost as much as your tax dollars. But only because once they get your guns, your money(and everything else) will be too easy.
Opposition – there doesn’t appear to be any.
Prognosis?
The Liberal Commies win without a fight.
You get a Social Credit Score, a Digital Bank Account and ID, a Monthly Vax and a Benevolent Government Master. With further instructions to follow.
People in France begin to use Canadian as a derogatory epithet signifying great cowardice.
Funny, I wrote this two years ago. Me, a guy with a Grade 12 education, but it was the 80s, and we actually studied macroeconomics. True story:
1) there is no threat of inflation due to the government borrowing then “spending” a trillion dollars
2) there is no inflation, like we said
3) there is some inflation, but not everywhere, and its not bad, so point 1 stands, please ignore point 2
4) there is some inflation in some minor areas such as fuel, housing and food, but its manageable
5) its only for a short time, just like two weeks to flatten the COVID curve, remember then?
6) inflation is actually good, Colbert says so, and who would know better than a celebrity millionaire?
7) the government has a plan for inflation if it ever really becomes a for real problem for real people
8) you’ll love wage and price controls…
9) its corporate greed that somehow didn’t exist two years ago, just started overnight
10) did we mention the inflation that isn’t happening, but would be great, is Putin’s fault?
11) overturning Roe will damage the economy
12) CTRL/H inflation/stagflation
13) CTRL/H stagflation/recession
14) CTRL/H recession/New Great Depression
Well, you can’t get to “you’ll own nothing and like it” without inflicting a lot of pain and economic damage first.
Nullum gratuitum prandium. There is no free lunch. What did people think was going to happen when Trudeau spent like the idiot that he is, locking down the economy, and generally being a wastrel? “I borrowed money so that you didn’t have to” was the quote, I believe. What an ass!
Also see: Illegitimi non carborundum.
“Don’t let the bastards grind you down”.
Next will be “Taxes growing at a record pace” and “bankruptcies are growing at a record pace” and “foreclosures are growing at a record pace”
All brought to you by the corrupt braintrust at Liberals, Inc.
After looking at some after-action reports on this SVB collapse, I have two thoughts.
First, I do not understand what’s going on here. It is outside my area of ability, the same as high-end particle physics. I can understand the explanations, but not well enough to make predictions of my own.
Second, the people RUNNING IT do not understand what’s going on here. Or worse, they do understand and they’re doing it deliberately. That’s the kind of thing a Manchurian Candidate would do, right?
These two notions lead me to think that there are not five Big Banks in Canada. There is -one- bank and they pretend it is five. Also that the purpose of these banks is not to protect the earnings of Canadians, but rather to milk us for all that lovely money-juice.
See:
https://www.businesspundit.com/sub-prime/
A bit different this time (other than the greedy smart people ripping off the greedy stupid people, and no bankers landing in jail, with a side order of DIE) and apparently, they invested in “safe” government bonds…but true.
I remember when my next door neighbour had to remortgage his house in 82 at 17% while I was smug with my 9% locked-in. It is now not possible to increase to those levels without sovereign default. The Ghost of Christmas Past (debt) is now upon us. The party is just beginning.
“We will balance the budget from the myocarditis outward.”
— Seeing Eye Minkey.
I don’t blame the people for the mess many of them are in. However, there are many things that folks can do to reduce their cost of living and indebtedness.
1. Get rid of your credit cards if you cannot pay them off in full at the end of each month.
2. Use a debit card if you don’t have a pocket full of cash. That way you can only spend money you actually have.
3. Learn to cook. I mean cook economically … make more stews, soups, casseroles pasta etc. food that is inexpensive, nutritious and goes a long way. DO NOT EAT OUT. No more $6 latte’s either. Get a thermos … and a brown bag lunch habit. It’s a tad humiliating at first then you get used to it and you will have more money at the end of the month. Don’t think you are too good to shop at Walmart for food. It’s a lot cheaper.
I could go on, but I think you get the picture. I have always lived below my means in order to be sure I would always be able to pay my bills and would never lose a house or a car to a banker. That means that rising interest rates = I get more return on my GICs so I can afford the inflated costs. See how that works?
a) The only loan you should ever have is a mortgage (and possibly a student loan). Pay back both as soon as you can, except possibly if you choose to invest money for a better return instead of paying back the loan. Always be prepared for, and able to tolerate, higher interest rates (assuming you have variable interest rate loans). Latest by the time you retire, you should be debt free.
b) Yes, never carry a CC debt.
c) Yes, learn to cook. You will eat better and cheaper.
d) Get yourself a good (and modest) car, maintain it well (preferably on you own, of you are able to), and drive it for many years.
e) Try to fix things yourself whenever possible. Trades people are expensive (but of course sometimes necessary – if so, find people you trust).
f) Don’t become a “slave to fashion” (of any kind).
g) Use your savings sensibly and enjoy life!
You are asking people who voted in a total moron and a “journalist” of some kind to be sensible and frugal.
Sir, that is a waste of time.
What we are seeing is decades of free spending, free printing, high taxes, inflation, waste, idiocy, theft and total incompetence.
Yes, your ideas make sense but, dude, … Canada.
Canadians voted for this.
I have a pocket full of cash and still do most of this stuff. It might be the reason I have a pocket full of cash.
My interest payments are going the other way. They might total $2500 for all of 2023. Personal and business.
How did Stats Can come by that particular percentage? Looked at a loan record I have, and the interest paid on said loan went from $226.64 on 28th February, 2022 to $445.97 on 28th February, 2023. And that’s even though some $36,800 was paid against the principal as well.