{"id":2710,"date":"2014-12-10T07:04:15","date_gmt":"2014-12-10T12:04:15","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2710"},"modified":"2014-12-10T07:04:15","modified_gmt":"2014-12-10T12:04:15","slug":"canadas-catch-22-bankruptcies-could-soar-if-economy-improves","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2710","title":{"rendered":"Canada’s Catch-22: Bankruptcies Could Soar If Economy Improves"},"content":{"rendered":"

Canada’s Catch-22: Bankruptcies Could Soar If Economy Improves<\/a>.<\/p>\n

There is a Catch-22 in Canada\u2019s economy, which is this: When things get good again, it will cause things to go bad.<\/p>\n

That\u2019s because Canadians have taken on so much debt that a rise in interest rates could tip many borrowers at the margins into insolvency.<\/p>\n

Many market observers expect interest rates in Canada and the U.S. to start rising next year, with the U.S. Federal Reserve leading the way as the U.S. economy enjoys a widespread recovery.<\/p>\n

CIBC economist Benjamin Tal\u00a0issued a report last week<\/a>\u00a0noting that interest rates typically rise when the economy improves, so bankruptcies tend to come down when interest rates go up.<\/p>\n

But after five years of rock-bottom interest rates, Canadians have taken on record levels of debt that have pushed house prices to record highs and spurred large increases in auto sales.<\/p>\n

That makes Canadian consumers very sensitive to changes in interest rates. \u201cWe might see bankruptcies rising alongside interest rates<\/a>,\u201d Tal concluded.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Canada’s Catch-22: Bankruptcies Could Soar If Economy Improves. There is a Catch-22 in Canada\u2019s economy, which is this: When things get good again, it will cause things to go bad. That\u2019s because Canadians have taken on so much debt that a rise in interest rates could tip many borrowers at the margins into insolvency. Many […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[942,103,195,431],"class_list":["post-2710","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-canada","tag-canada","tag-debt","tag-interest-rates"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2710"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2710\/revisions"}],"predecessor-version":[{"id":2711,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2710\/revisions\/2711"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}