It’s Probably Nothing

8 Replies to “It’s Probably Nothing”

1. That’s only 50,000 dollars per person across the entire country.

2. By itself, the absolute amount of the debt is meaningless. It has two relevant contexts here: 1. the ability to service the debt; and 2. the value of the assets for which it is incurred. Are things moving in a better direction? According to CMHC, they are.

   1. How much of the CMHC held debt is underwater on variable mortgages is an even better question that will be concealed as long as possible.

   2. “According to CMHC, they are.”….because you can always believe your canaduh government agencies.

      Looking around I see houses that sold for $600,000 a couple of years ago listed for $1,000,000 canadian pesos. So I say the underlying assets are not valued correctly, particularly high-rise condos at $1200-$1500/ sq.ft.

      A high percentage of owners bought with the “free” CERB cash $4000/month per couple, when banks were not checking sources of income, I will not be sorry if they have to sell at fire sale prices.

3. New car Debt soon to hit $1 Trillion … as the cost of an average new car passes $60k … and loan terms go to 10 years

4. Bankruptcy and reevaluation of the currency is on the way.

   1. After that is the moment that Thatcher called “when they run out of other people’s money”.

      1. Yes.