Canadian and US National Debt Crisis?

June 7, 2016

Canadian debt is over $600 billion – check here http://www.debtclock.ca/ and the US debt is over $19 trillion http://www.usdebtclock.org/   The question we need to ask is, “Should we be concerned?”

Our Federal government is intentionally going into debt another $9M to fund programs they felt important enough to borrow for. The US has blown through a number of so called debt ceilings over the last few years.

 

Canadian Debt

February 9, 2016

We keep hearing that Canadians have been increasing their debt and that this could spell catastrophe (read “Why Does Pessimism …”)

Our household debt relative to income is the highest of the G7 countries.  But the truth is 77% of the total debt Canadians owe is mortgage debt which is considered good debt.  As long as this debt can be serviced – low interest rates and low unemployment are necessary, mortgage debt is no different than an RSP contribution.  It’s an investment in an appreciating asset. So let’s worry when interest rates rise above 6% and unemployment is closer to 10%!

Canadian Household Debt Article