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Canadian Finance Minister Flaherty speaks of further restrictions in mortgage lending after a...

Canadian Finance Minister Flaherty speaks of further restrictions in mortgage lending after a report shows household debt/income ratio at 148%, higher than the US. BoC Governor Carney warns of a "brutal reckoning" if households and businesses do not prepare for higher rates.
Comments (3)
  • Poor Texan
    , contributor
    Comments (3529) | Send Message
     
    "a report shows household debt/income ratio at 148%,"

     

    This sounds scary but when you read the story you read, "Household per capita net worth rose from $174,500 in the second quarter to $178,600 in the third quarter". To me, this indicates that the net worth of the average Canadian is a better measure of fiscal solvency than to debt/income ratio. Does anyone have the comparable measures for the U.S.?
    13 Dec 2010, 05:23 PM Reply Like
  • D. McHattie
    , contributor
    Comments (1842) | Send Message
     
    And what proportion of that net worth is home equity?

     

    Do you realize, Poor Texan, that you are thinking just like the rest of America did last decade?

     

    This is working out extremely poorly at the moment.
    13 Dec 2010, 08:00 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3529) | Send Message
     
    Was just trying to find a comparison between Canada's situation and ours. From this article, you're not in near as bad shape.
    13 Dec 2010, 09:12 PM Reply Like
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