RE:RE:RE:My Local Economy Appears Strong! Strange :-)Using your link for Household debt / Disposable Income, looks like 25 year plot goes from 100% to 180% over 25 years. While a tad high for my personal taste, I would of assumed it to be much higher.
If I understand correctly, that implies Canadians could buckle down and pay off all household debt in less than two years if they got serious. (I assume this excludes mortgage debt ???).
If you consider household debt is really just future consumption brought forward in time, the 180% number implies a higher probablity of reduced consumption in the future.
I see the 180% level as unhealthy, but not catastrohic, definetly increases probabilty of recession in future. To be fair though, probablities are not certainties.
Curious how that household debt is structured?
Is it a reasonable fixed rates, or a high floating rates ?
Probably floating... ouch :-)
Cheers,
Nukester