- Joined
- Aug 22, 2008
- Messages
- 428
-The Bank of Canada is warning of severe economic turmoil, including the risk of many Canadians losing their homes, if the financial-market crisis worsens.-if global financial conditions deteriorate, the bank warns the repercussions for Canada could be serious, including a deep and prolonged recession, slow income growth and severe trouble for Canadians already carrying heavy debt loads.
-"With household balance sheets under pressure from weak equity markets, softening house prices, slowing income growth, and record-high debt-to-income ratios, a severe economic downturn could result in a substantial increase in default rates on household debt," the review states.
-household debt woes could be a channel of contagion spreading through the banking system and cause even greater tightening in the availability of credit.
http://www.thestar.com/Business/article/552151
-"With household balance sheets under pressure from weak equity markets, softening house prices, slowing income growth, and record-high debt-to-income ratios, a severe economic downturn could result in a substantial increase in default rates on household debt," the review states.
-household debt woes could be a channel of contagion spreading through the banking system and cause even greater tightening in the availability of credit.
http://www.thestar.com/Business/article/552151