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Trudeau and Biden socialist policies are doing this. For fuck sake man, listen to this. This is hard economic data coming in. Ignore the government spin which is trying to make you and I a slave to dictators. Trudeau policies caused this and he is doubling down to make sure we are dead.
Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com
Debt payments consume an impossible amount of household income, and the problem is global.
Across ten large Canadian cities, mortgage payments alone are eating up about 59% of household earnings, based on mortgages amortized over 25 years. This is with 70% of Canadian mortgages still paying fixed payments based on rates less than 3%. With current mortgage rates around 6 percent, interest costs will double and more as terms come due.
Twenty-five percent of the mortgage book at Canadian banks is negatively amortizing today (i.e., loan balances increasing monthly) with amortization periods over 25 years. Regulators have instructed banks to bring these loans back to conventional 25-year amortization, stat.
Meanwhile, even with a whopping bear market rally in the S&P 500 from October to August, it has been 616 days (1.7 years) since the index made a new cycle high; this length of price stagnation has only happened seven times in the past seven decades, and only within ongoing bear markets.
Aggregate hours work has been stagnant for six months and US non-farm payrolls have been revised lower for seven consecutive months–an extended pattern only seen during past recessions.
“We really are starting to see multiplying signs of stress in the consumer sector.” Danielle DiMartino Booth, chief executive officer and chief strategist at QI Research, discusses the US economy, oil prices and her outlook for the labor market. She speaks on Bloomberg Television. Here is a direct video link.
