Ah plastic. What’s not to love? Convenient? Check. Light in the pocket? Check. Monthly bill summaries? Check. Free short-term credit? Check (provided you pay your bills in full, on time). Benefits (free car rental insurance, points, cash back etc): Check AND… Take from the poor and give to the rich? err… wait a minute. Unfortunately, credit cards — especially those […]
Read morehas just been published and is avalaible here. It largely confirms research conducted by PEF members on household wealth, indebtedness and income. The report highlights the state of financial precarity of many households, the gap between income and spending, the growing debtload and the important impact the “recession” (if we still want to call it that, given its deflationary driven […]
Read moreAh, the confluence of the events! The tabling of a “prudent†federal budget for uncertain times, followed a week later by news of slowing economic growth. Of course, rumors of the economy’s imminent decline may be greatly exaggerated, given January’s jobs report and trade data. But let’s carry forth with the economic accounts data. Earlier, Erin and Toby drew […]
Read moreIt is a grim story for household finances according to a recent report by Roger Sauve for the Vanier Institute for the Family. Savings have all but vanished for most families, with debt rising to record highs relative to income. Interest payments have jumped up relative to income, suggesting more households are mortgage and credit card poor, with debt service […]
Read moreWith the US convulsed by massive defaults on household debt and a resulting banking crisis, the question of whether we are in anywhere near the same dismal state seems germane. The bank economists typically proclaim that all is well compared to the excesses south of the border, but that does seem a trifle self-serving given that they work for the […]
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