53% of Canadians on the brink of insolvency

[fratri]

So this confusing in other articles they say Canadians have saved hordes of cash as well people are buying up everything.

So which is it?

Not sure but I was at the Jewelers a few month ago.... I asked if business was any good. She said it has never been better.... I said really? She went on to say, most can't take their loved one on vacation (covid) so are spending the money on Jeweler instead. I guess some are booming, some not so much. Interesting times for sure.

[impact]

All excellent points......^^^^^^^^^^

May I add that the people who were living in condos and bought rural acreage will soon come to realize that mowing 2 acres and plowing a 200 feet driveway gets tedious real quick. It takes a special type of person to own such a property unless you have oodles of cash to spend on property maintenance companies. Some may adapt but a reverse migration is likely to occur.

[MarkB]

So this confusing in other articles they say Canadians have saved hordes of cash as well people are buying up everything.

So which is it?

I think there are THREE social classes (in respects to money/finances) ... baby boomers have $1 trillion in wealth, that's about to be transferred to GEN X, Y. Then there's GEN X/Y ... not doing too bad, fortunately they were raised in homes (by Baby Boomers) with good fiscal management, so they used that, and yes, they got their homes at reasonable prices. Then there's the Millenials ... spending like crazy ...

In everyone of those classes, there are people that don't fit the mold for sure ... Baby Boomers who are in trouble, and Millenials that are going to do just fine (in fact great) ... so we are talking generalities here.

Also, I think the problem is more CASH FLOW ... not actual debt. A good portion of that debt is going into real-estate (primary home) ... which retains value, so it's not necessarily all bad debt ... you have capital ... but the issue will be managing that debt, particularly if the interest rates go up.

[mosquito]

Cash flow... but where is it flowing, when the average Canadian is paying 43% of their income in taxes, discretionary and essentials money will be short.
https://globalnews.ca/news/3691159/c...ser-institute/

The Federal gov't added over $40,000,000,000 in INTEREST PAYMENTS, not reducing debt etc. just the payments, where will that come from, buying oil from overseas, lockdowns... just creating more and more debt! Interest rates, inflation.... read what happened to Germany, you could sell your house on Monday and buy a loaf of bread with that amount a week later. I have a few of those old Ten million mark bills, so many still out there I think I paid about $1 for it.

Actions and choices have an impact on a person but only the gov't can completely f*** a couple generations at once.

[MikePal]

All excellent points......^^^^^^^^^^

May I add that the people who were living in condos and bought rural acreage will soon come to realize that mowing 2 acres and plowing a 200 feet driveway gets tedious real quick. It takes a special type of person to own such a property unless you have oodles of cash to spend on property maintenance companies. Some may adapt but a reverse migration is likely to occur.

That's very true..average 4 yrs for City folk to turn around and go back...according to the local Real Estate office. The agent told me he sold the same country home 7 times. Most common excuse ..kids and wife weren't happy. In fact exactly how I got mine. Young family was in it for 5 yrs.

Not a Happy wife...Not a happy life

[Bushmoose]

May I add that the people who were living in condos and bought rural acreage will soon come to realize that mowing 2 acres and plowing a 200 feet driveway gets tedious real quick. It takes a special type of person to own such a property unless you have oodles of cash to spend on property maintenance companies. Some may adapt but a reverse migration is likely to occur.

Having lived in a rural area most of my life, I've witnessed this numerous times. Citiot wants a change in their lifestyle, clean environment, spacious surroundings, back to nature. Then their well goes dry? Then the septic plugs up? The rural schools may not offer the extracurricular activities that are found in the city? 1 hour drive to get to the big box stores, a half hour before they close? I've seen it so many times, it's become laughable. Some will embrace it, most do not.

[410001661]

I know that I have never been busier.

The industrial and automation electrical business is really going strong in the OEM and end user markets in Canada. Our numbers are up well over 2020 - shaping up to be a good year. On the side business I have never been busier - people are upgrading, renovating and fixing up their homes (especially kitchens, basements and garage man caves and she sheds). I guess since our government has us in house arrest we might as well enjoy the space more.

[73hunter]

You'd have to stand outside any RV dealership, ATV/Snowmachine dealership, Marine dealership or any other multitude of toy stores to ask that question. You may get a lot of "deer in the headlights" looks, but it's a good place to ask that question. Just don't expect a sensible answer?

Yes all these items are hot for the past year with many people blowing their CERB money. I’m hoping there will be a glut of it in the market when things go back to normal and prices will fall through the floor, but that’s likely wishful thinking.

[greatwhite]

Yeah I have seen that before, A fella I was acquainted with moved in beside a dairy farm (my whole area is surrounded by dairy farms) then sold 2 years later, he said he didn't know it would stink.

Actually my family rarely notices anymore, then again walking downtown Ottawa I see and smell enough stinky people

[MikePal]

Yes all these items are hot for the past year with many people blowing their CERB money. I’m hoping there will be a glut of it in the market when things go back to normal and prices will fall through the floor, but that’s likely wishful thinking.

Yea when you head into solvency because of poor financial decisions, those kind of toys get sold first...HaHa.