Our friends to the north are more like us!

[BlueStateSaint]

At least in their spending habits . . .

Canadians' debt soars into danger zone

BARRIE MCKENNA

Ottawa--The Globe and Mail

Published Monday, Oct. 15, 2012  1:12 PM EDT

Last updated Monday, Oct. 15, 2012  11:43 PM EDT

Canadians have entered the debt danger zone that helped trigger real estate crashes in the U.S. and Britain.

The average household now has just 63 cents of disposable income for every dollar of debt, according to figures released Monday by Statistics Canada. That’s the highest ratio of debt to income ever recorded in Canada, and more inflated than the levels witnessed in the U.S. and Britain before their housing market collapses in the mid-2000s.

The rise in debt levels comes as Canada’s housing market is showing increasing signs of weakness, with more than half of major markets seeing sales drop 10 per cent in September from a year ago and the average national price rising a scant 1.1 per cent over the same period.

In spite of tighter federal mortgage rules and repeated warnings from Bank of Canada Governor Mark Carney, debt levels continue to rise. The worry now from some observers is that a debt-fuelled housing bust could deal a double blow as the global economy stalls.

Mr. Carney reiterated Monday that efforts by Finance Minister Jim Flaherty and the federal bank regulator to deter new mortgages are “still having an impact.” That suggests he will wait to raise rates to curb demand for credit.

You'd think that they'd look at how our economy has 'grown' under the Obamessiah, and choose accordingly.  But, noooooo!

http://www.theglobeandmail.com/report-on-business/economy/canadians-debt-soars-into-danger-zone/article4613321/