By Rodney Burley:

As mentioned Part-1, Canadians like to think they are 'different' than their southern neighbors. That is certainly true in some respects, but not in the accumulation of debt. Canadian households debt to disposable income versus that in the USA is shown in the below chart, however Canadians went quite a bit further in debt! Well at least that's different, right?

Chart-5: Credit Market Debt to Household Disposable Income (%). This chart shows how Canadian households compare to their American counterparts. Canadian households held more debt (to disposable income) than Americans for every single year of data shown. American households started the process of deleveraging in 2007, but Canadians have yet to start.

Click images to enlarge

Source: Statistics Canada & Federal Reserve (Flow of Funds Accounts of the USA)

Mark Carney, the Governor of the Bank of Canada (BoC), made a speech last year at the Vancouver Board of Trade


Complete Story »