Increase in number of insolvencies has been long expected and is an unfortunate by-product of short term thinking and careless policies.
I am puzzled and surprised how dismissive and carefree the ones who are expected to know better and supposed to protect the consumers are.
One of the main contributors to household debt is real estate. There has not been much of control on mortgage approvals resulting in over heated market, many purchased more than they can afford hoping the increase in value would be compensated in long term, some ended up with private lenders who won’t renew in a couple of years due to eventual price drops and lack of equity, and consequently pushes the borrowers over the edge and…. It happened in BC and Alberta, it’s happening in Ontario and specially in GTA and it appears Quebec is next.
Ms. Dawn Desjardins Chief Economist, RBC, said, “Quebec, in particular has been the star performer in Canada’s economy over the past eighteen months”. One may wonder whether this has anything to do with Quebec’s real estate market. Have we all forgot BC, Alberta and Ontario? Unless something is done the “Star Performer in Canada’s Economy” is next.