Tag: credit risk

Consumer Cannon Fodder

Good news for long abused savers while long favoured debtors are nudged a little closer to the precipice. It appears overindebted Canadian consumers can now officially consider themselves nothing but cannon fodder at the Bank of Canada. Governor Stephen Poloz and his deputies on the Governing Council raised the benchmark interest rate a quarter-point to…

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Global Gluttony Continues

Taking on debt in basic terms simply means stealing from our future income in order to purchase or consume something today. If we do enough of it what will be left of our future income in order to purchase or consume in the future?  Is there not an inevitable wall that will be hit?  Will…

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Uuuum…Alberta We Have a Problem….

As a collection agency operating in Alberta we recognize that the vast majority of consumers we inevitably end up dealing with good people, with good intentions that have now simply arrived at the tipping point of having to either try to continue to rob Peter to pay Paul or, in the alternative, to make some…

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Canadian Debt Dogpile

As a collection agency in Edmonton, Calgary and the GTA we are watching with keen interest the unfolding of events with respect to the following phenomenon and their impact (or lack thereof) on Canadian credit markets. Our Federal government recently admitted that they will never eliminate the deficit. In fact, Finance Canada now projects deficits…

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Pending Credit Market Dumpster Fire?

Moody’s Investors Services joined the Bank of International Settlements (BIS) and S&P Global Ratings this month warning that Canada’s banking system, dominated by the Big 5, is facing a growing threat of souring consumer loans amid rising interest rates.  Canada’s ratio of household debt to disposable income reached a record 171 percent in Q3 of…

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The 1.8 Trillion Dollar Millstone

As a collection agency Edmonton, collection agency Calgary and collection agency GTA we recognize that the vast majority of consumers we inevitably end up dealing with are good people, with good intentions that have now simply arrived at the tipping point of having to either try to continue to rob Peter to pay Paul or,…

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Time almost up at the all-you-can-eat buffet?

Canada’s current debt binge has some sounding the alarm on rate hikes. According to Macquarie Capital the unprecedented rise in consumer debt means the Bank of Canada’s (BoC) rate-hiking cycle is already the most severe in 20 years and further increases will have far graver consequences than conventional analysis shows. Assuming just one further rate…

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The End of the Canadian Housing Bonanza?

Canadian home sales rose to a record in December just before tougher mortgage rules took effect, helping make 2017 the second strongest market ever. Transactions climbed 4.5 percent from November to 45,976, according to a report in early January by the Canadian Real Estate Association. The national benchmark price index was little changed on the…

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You’re not as rich as you think

With Canadian policy makers led by Governor Stephen Poloz increasing the benchmark overnight rate to 1.25 percent last week, marking the highest level since the global recession and their third hike since July Canada also became the first major central bank to move ahead with a rate increase in 2018. As a collection agency in…

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Are Canada’s Central Bankers out of touch with Main Street or what?

In spite of a recent report issued earlier this month by the Institute of International Finance (IFF) that the world is swimming in a record $233 trillion of debt, soaring to a record $233 trillion in the third quarter of 2017 Canada’s central banker went ahead today anyways, raising rates by another .25% to 1.25….

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