Good Times; Bad Times: Have we now had our share?

[jogesc2]

I just looked, if I wanted to use my unsecured line of credit through my bank it would be about a 9.5% interest rate. That's insane!!

 

[paulxing]

From The Economist, Canada is the No. 1 most exposed economy across the European/North American (plus Australia/NZ) index for real estate. With household debt at 186% of net disposable income and house prices having increased 41.7% 2019 thru Q2 2022.

This matters given the quantum of ARMs, HELOC, etc. all of which are interest rate sensitive and what will very likely be major negative moves in house prices.

Fed has signaled another 75 bps rise.

30 year fixed in the US is at 7.78%.

It's coming, I think, for cards. Maybe not the very top, top end graded stuff. But everything else, it's coming.

Yeah I basically warned everyone about this earlier in the thread and agree maybe top end is "relatively outperforming" (i.e. not down as much as other stuff) but people are going to experience serious pain. Annedoctaly, a lot of the sales guys I deal with for my day job have been getting laid off in restructurings.