The Bank of Canada is out with household debt numbers for March 2012. Canadian household debt stands at $1.602 trillion. Residential mortgage debt stands at $1.116 trillion, while consumer credit stands at $486 trillion.
Flaherty can breath a little easier as mortgage debt growth has "softened" a tad over the last few months, but it is still growing faster than labor income, wages, GDP, inflation....that would make the housing market sustainable over the long term but continually fails to do so.
The next question is what happens to a credit induced housing market when the credit punch bowl is slowly taken away?
Dr Steve Keen has the answer to your question: the Walras-Schumpeter-Minsky law
ReplyDeleteSteve Keen is the man.
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