The Motley Fool Discussion Boards

Previous Page

Motley Fool Global Gains / GGV: Canada


Subject:  Canadians more profligate than Americans Date:  12/14/2010  12:38 PM
Author:  TMFTheSnake Number:  29 of 36

It appears Canada may have a debt problem, just not at the government level. Canadians have an ever so slight lead on Americans in hosuehold debt to disposable income. They both still lag Australians.

This poses a problem for the central banks of these countries as these debt binges are in part a result of low interest rates. However, the central bank can't raise rates without making the CAD and AUD more attractive to foreign investors, which would hurt their respective economies, making the high debt levels more dangerous.

Round and round we go. Where it stops...well it won't stop. Not forever anyway.
Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us