Canadians credit-market debt to disposable income is setting new records again as high house prices, emergency interest rates, and still historically loose lending standards encourage unhealthy leveraging. At a time when another global recession is likely to hit, the financial risks to Canadians are enormous.

…One indicator of recent weakness was new data Tuesday showing Canadians fell deeper into debt, and lost household wealth during the difficult second quarter.
The period saw stock markets tumble, eroding the value of Canadians’ investments and undermining the so-called wealth effect that underpins consumer confidence.
Statistics Canada said household net worth fell 0.3 per cent to $184,300, the first decline in a year. Meanwhile, household debt to income rose to a record 151 per cent.
The situation likely got worse in August, when financial markets suffered an even bigger setback from growing unease over European and U.S. deficits and debt….

To read more visit: www.ctv.ca