News Story of the Day: Canadians’ love affair with debt is continuing and set to rise in 2016, says a new report from CIBC.
Households in the Great White North will finish off 2015 with record-high debt levels, and this level of debt will swell in 2015. Despite the growing amount of debt, a lot of financial experts say Canadian consumers are in good shape. For every dollar a Canadian has in disposable income, they are $1.64 in the red.
The Bank of Canada (BoC) governor Stephen Poloz recently came out highlighting his concern about increasing household debt and illiquid assets. Poloz believes this could be a major weak spot in the country’s financial system. However, he has been adding fuel to the fire with low interest rates, and the possibility of subzero rates.
But if interest rates were to go up then millions of consumers would be in trouble says CIBC deputy chief economist Benjamin Tal.
“As a society, there is no question that we are more sensitive to the risk of higher interest rates than in any other time in history,” Tal said. “On its way up, it’s extremely powerful.”
Chart of the Day: We’ve published this chart before, but with Daniel Mitchell publishing an incredible op-ed on CNS News talking about how the minimum wage helps mandate people into the unemployment line, we couldn’t resist. The chart compares European countries’ unemployment rate with a minimum wage compared to those countries’ jobless figures without a minimum wage. It’s rather telling.
Illustration of the Day: 2016 presidential candidate Bernie Sanders has been relatively quiet in the last couple of weeks. Since his polling numbers have cratered with Hillary Clinton (the president in waiting) leading by 27 points, it’s understandable that his campaign isn’t really feeling the Bern anymore. Perhaps people are starting to realize that his Santa Claus promises of “free stuff” isn’t feasible. InfoWars has a great graphic of Sanders:
Quote of the Day: Bestselling author Thomas DiLorenzo writes this marvelous passage on LewRockwell.com explaining the “horrible economics of the basic income plan” and the welfare state in general. Here is what he wrote:
“Let’s not forget that welfare statism, as with all forms of socialism, is a type of slavery or involuntary servitude. One person is forced by threats, violence, and intimidation to work for the benefit of others. What else would one call such a situation other than slavery?”
Video of the Day: Rape, murder, annoying, cringing, assault, death…these are words to perhaps describe Hillary Clinton’s laugh. After watching the embedded video below, one debate moderator or television host must ask Clinton the following: You’re Satan, aren’t you?
Leave a Comment