Get Ready For A Wave Of Household Bankruptcies in Canada? – November 6, 2018,
I’ve been saying for quite some time now, that Justin Trudeau’s Liberals are behaving like we’re in the 1990’s and Paul Martin is the finance minister. Bill Morneau is the current finance minister and Bill Morneau is more of a bay street guy, a numbers guy, the type of person that doesn’t really understand the hardships that brick and mortar businesses face every day. Justin Trudeau comes from privilege you can see based on his policies that social issues trump economic issues.
This wasn’t how Jean Chrétien and Paul Martin viewed the world, these guys were free market corporatists. They understood the free market and created an economy that was competitive during that time. Therefore capital inflows into Canada became the norm, easy lending became the norm, protecting the mortgage holders with Crown Corporations like CMHC became the norm and the vision forward.
They did such a good job that when Canada needed a bailout during the financial crash that hit the United States and the world on the surface Stephen Harper was able to make everything seem like it was smooth sailing. Bottom line is the Canadian banks did not crash. This, of course, became fools gold, however, because this easy lending meant more Canadians could get into debt, many of them did, the problem with this debt is that the strategy works when properties appreciate and you as an investor have the option of being a real estate investor or flipper, but it doesn’t work when you actually have to pay that loan with your hard earned money every month.
Get Ready For A Wave Of Household Bankruptcies, Canada – Huffington Post
What’s happening in Canada now with the slow down is that people are having to pay those loans or those monies they borrowed with their actual labor, this is no laughing matter, this is actually rather depressing, because we’re not even talking 10 years, we’re talking 15-25 years of living on this earth existing only pay taxes and pay back loans. How long do you think it will take before these people start to tap out financially? Don’t these people have to retire also? imagine your retirement check is used to pay down debt?
Imagine if you sold your depreciating asset called your house at a loss? meaning that even without the home you’re still in debt to the bank? plus imagine those very same people who have to leave their home via a power of sale still had to pay these skyrocketing rental prices? How does all of this sound to you? Well, I can say that I’ve met people in Toronto that are already going through the scenarios I just explained, it’s very common, the difference is some people are doing a better job holding their composure but many are seriously beginning to consider bankruptcy. Hmmm, 7 years of bad credit vs. a 25-year mortgage of misery? Which one would you choose? That bankruptcy button may become the norm in the very near future.
Interesting times ahead.
