http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/boomers-punch-drunk-on-household-debt/article2315580/
It finds that the most heavily-indebted are responsible for all of the rise in debt since 2007, and that those who should be saving for retirement and building assets are moving fastest into a financial hole.
“While a crisis does not appear imminent, there are cracks emerging in the financial foundation of Canadians that are likely to impair spending growth ahead,” says the report, titled “Punch Drunk”, by CIBC economists Avery Shenfeld and Benjamin Tal.
Ballooning household debt has made headlines in recent months, and Bank of Canada Governor Mark Carney has warned it is the No. 1 domestic risk to Canada's economy.
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D - so if interest rates increase during a recovery to offset inflation, and these households go bankrupt, it can retard the recovery. We will truly have a 'lost decade'.
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Other economists, too, have flagged that it is older Canadians who are piling on debt. In October, a TD report found the 65-plus age group are racking up debt at three times the average pace.
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D - and they are not saving enough to maintain their lifestyle.
'not a crisis', 'can be made sustainable with changes'? this is the 'boiled frog' doctrine. plus it fails to use linkage to show where the synergy of all these combined policies will lead. the titanic could handle 4 bulkheads breached- not five. this is the 'five'.
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