{"id":6476,"date":"2015-03-13T06:21:57","date_gmt":"2015-03-13T11:21:57","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6476"},"modified":"2015-03-13T06:21:57","modified_gmt":"2015-03-13T11:21:57","slug":"household-debt-soars-in-canada-stability-at-risk","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6476","title":{"rendered":"Household Debt Soars in Canada, \u201cStability\u201d at Risk"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/03\/12\/household-debt-soars-in-canada-stability-at-risk\/\" target=\"_blank\">Household Debt Soars in Canada, \u201cStability\u201d at Risk<\/a><\/h3>\n<p>Debt by Canadian households is a special phenomenon. Statistics Canada reported today that in the fourth quarter, household debt set another breath-taking record.<\/p>\n<p>Earlier this month, even Equifax Canada, which is in the business of facilitating and increasing this indebtedness, had warned about it. The total indebtedness of Canadian households, according to its own measure, had jumped 7.7% from prior year, which had already been at record levels. The biggest culprits were installment and auto loans. Households are powering consumer spending, and thus the overall economy, with ever larger amounts of ultimately unsustainable debt.<\/p>\n<p>A \u201ca cautionary tale,\u201d the\u00a0<a href=\"http:\/\/investor.equifax.com\/releasedetail.cfm?ReleaseID=899634\" target=\"_blank\">report<\/a>\u00a0called it.<\/p>\n<blockquote><p>The rapid decline in oil prices caught many by surprise. And, that\u2019s the point \u2013 consumers and business owners need to be more vigilant. When economic change happens, it can happen very quickly and can challenge previously observed stability of key economic and credit indicators.<\/p><\/blockquote>\n<p>In other words, as the price of oil collapsed, as housing stumbled, and as layoffs began \u2013 the \u201ceconomic change\u201d that \u201ccan happen very quickly\u201d \u2013 the \u201cstability\u201d of different aspects of the economy, including household debt, is suddenly at risk. It\u2019s a warning that consumers might buckle under that mountain of debt.<\/p>\n<p>&nbsp;<\/p>\n<p><span class=\"Apple-style-span\">Now\u00a0<a href=\"http:\/\/www.statcan.gc.ca\/daily-quotidien\/150312\/dq150312a-eng.htm\" target=\"_blank\">Statistics Canada<\/a>\u00a0weighed in. In Q4, household borrowing, on a seasonally adjusted basis, jumped by C$22.6 billion from the third quarter. Credit cards and auto loans accounted \u201cfor the majority of the overall increase.\u201d Total household debt (consumer credit, mortgage, and non-mortgage loans) rose 1.1% from the prior quarter to C$1.825 trillion, with consumer credit hitting $519 billion and mortgage debt C$1.184 trillion.<\/span><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Household Debt Soars in Canada, \u201cStability\u201d at Risk Debt by Canadian households is a special phenomenon. Statistics Canada reported today that in the fourth quarter, household debt set another breath-taking record. Earlier this month, even Equifax Canada, which is in the business of facilitating and increasing this indebtedness, had warned about it. The total indebtedness [&hellip;]<\/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":[103,195,4151,1935,1583,4150,481,1775,1936],"class_list":["post-6476","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-debt","tag-equifax-canada","tag-household-debt","tag-housing","tag-indebtedness","tag-leverage","tag-oil-price-collapse","tag-statistics-canada"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6476","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=6476"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6476\/revisions"}],"predecessor-version":[{"id":6477,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6476\/revisions\/6477"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}