Author Archives: cdugan

Time almost up at the all-you-can-eat buffet?

Canada’s current debt binge has some sounding the alarm on rate hikes. According to Macquarie Capital the unprecedented rise in consumer debt means the Bank of Canada’s (BoC) rate-hiking cycle is already the most severe in 20 years and further increases will have far graver consequences than conventional analysis shows. Assuming just one further rate […]

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The End of the Canadian Housing Bonanza?

Canadian home sales rose to a record in December just before tougher mortgage rules took effect, helping make 2017 the second strongest market ever. Transactions climbed 4.5 percent from November to 45,976, according to a report in early January by the Canadian Real Estate Association. The national benchmark price index was little changed on the […]

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Worry = Higher Interest Rates + Covering Monthly Bills

According to a recent Ipsos poll conducted by MNP LTD., Canadians are increasingly worried about their ability to repay their debts. Since interest rates first rose in July, households across the country have noticed their budgets tightening as they struggle to keep up with expenses and manage other rising costs. Jumping eight percent since September, […]

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You’re not as rich as you think

With Canadian policy makers led by Governor Stephen Poloz increasing the benchmark overnight rate to 1.25 percent last week, marking the highest level since the global recession and their third hike since July Canada also became the first major central bank to move ahead with a rate increase in 2018. However central bank officials also […]

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Are Canada’s Central Bankers out of touch with Main Street or what?

In spite of a recent report issued earlier this month by the Institute of International Finance (IFF) that the world is swimming in a record $233 trillion of debt, soaring to a record $233 trillion in the third quarter of 2017 Canada’s central banker went ahead today anyways, raising rates by another .25% to 1.25. […]

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Thinking wisely and acting foolishly

A new CIBC survey shows a quarter of Canadians say paying down debt is their top personal finance priority for 2018 as has been for the previous seven years. And we know how well that’s been working out for households in this country. So is there any reason to believe next year will be different? […]

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Richer but More Indebted; The New Reality

According to a report released December 7, 2017 by Statistics Canada median family net worth was $295,100.00 up 14.7% from 2012 and more than double from 1999. The Survey of Financial Security marks the first time since 2012 that the data agency has taken an exhaustive look at the financial lives of Canadians.  A person […]

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In Praise of Profit

It may be politically incorrect to say this today. But, that doesn’t make it any less true. It’s good when businesses make money. Profits are important to the Canadian economy. They’re what generate jobs. They’re the mainstay of prosperity for the middle class—and for all Canadians. It’s a fact all too often forgotten in today’s […]

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GIVE – Just Do It

Some of the most troublesome aspects of gift giving are the materialism and commercialism that are so inextricably woven into the fabric of Christmas and the attendant pressure of giving gifts to others out of a sense of obligation, rather than freely out of love. While we can all identify with such pressure, it is […]

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We’re on the Hook for the Lack of Prudence of Others!

As Canadian household debt hit an all-time high in 2017  a new study by TD Bank finds that 97% of Canadian homebuyers say they wish they’d factored in their other financial obligations when determining the mortgage they could afford. (Too bad their mortgage broker/architect/advisor was not required to factor these ‘obligations’ into their loan approval consideration either.) We […]

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