Sentences with phrase «more household debt»

The government subsidy helps the mortgage industry sell larger loans but with such an incredibly inelastic supply in housing, the subsidy mainly leads to higher demand, higher home prices, more household debt and less household spending on stuff that creates jobs for other people.

Each saw an increase in 2016, at a total of $ 460 billion more household debt — the largest increase in a decade.

That seems to be popular reasoning these days as consumers have more household debt than ever before.

Not exact matches

But dissuading households from taking on more debt will be up to others.

While Canada's record high household debt makes the economy more vulnerable, the bank's cautious approach is helping to manage the risks, Poloz said.

And as organizations such as the IMF and the OECD have constantly warned, high household debt renders the country far more vulnerable to economic shocks.

One of my constant points on this blog for the last several years has been that households» refinancing of their mortgage debt at lower and lower rates has put more money in their pockets for spending and for paying down debt.

But low interest rates, at least in Canada, have pushed household debt to such vertiginous levels that officials like Carney know they shouldn't be counting on consumer spending to drive the recovery — ergo, the call for more corporate investment.

A recent paper by the International Monetary Fund warned that «housing busts and recessions preceded by larger run - ups in household debt tend to be more severe and protracted.»

«When house prices declined, ushering in the global financial crisis, many households saw their wealth shrink relative to their debt,» its authors observed, «and with less income and more unemployment, found it harder to meet mortgage payments.»

While $ 1.3 trillion won't do much to change the outlook for inflation or future debt crises, it sure would give a lot of households one last chance to set things on a more positive course.

If consumers are tapped out or wary of taking on more debt, then bank credit can be expanded to the moon and households will not borrow more money.

The negative consequences of pushing more debt on households is also obvious: more loans become uncollectible and go into default, creating more loan losses for banks.

According to the status quo, adding more debt to households is the cure to our economic malaise.

But for most households, high debt is the disease, not the cure, and adding more debt to «stimulate spending» is like trying to put out a fire with gasoline.

But that pain today would arguably be less severe than if rates go up years from now, when households have piled on even more debt.

The average U.S. household carries more than $ 6,000 in credit card debt.

The more Poloz and his deputies repeat their contention that the threat posed by household debt has receded, the more confidence executives and investors will have that they can make decisions without having to worry about a snap interest - rate increase.

Yet, as a country, we are probably more vulnerable than we were a decade ago because we failed to take seriously the most important lesson of the crisis: the dangers of housing mania and the perils of household debt.

Of course, rock - bottom rates and a strong Canadian dollar, he added, are the opposite of what the Canadian economy needs right now in order to kick its current addiction to household debt and condos and switch to a more sustainable growth model fuelled by exports and business investment.

Unsurprisingly, low - income households were among those hardest hit by the recession, and were more likely to report significant increases in debt.

His comments come after the IMF in October said that Canada's high debt levels, and higher - than - average pressure on Canadian households» ability to pay down that debt in the private non-financial sector, leaves its economy more sensitive to tighter financial conditions and weaker economic activity.

By contrast, its GPI performance declined over the same period as the booming province experienced growing wealth disparity, increased household debt, more greenhouse gas emissions and a spike in problem gambling, among other things.

That's a reference to Canadian households» heavy debt burden, and lower borrowing costs only would encourage more borrowing.

Examination of data from the Federal Reserve's Survey of Consumer Finances — the central bank's effort to examine the financial conditions of American families — by two Northeastern University scholars shows that households with more student debt are less likely to start businesses than other households.

More than a quarter, or 26 %, of stressed households said they were more likely to default on credit - card dMore than a quarter, or 26 %, of stressed households said they were more likely to default on credit - card dmore likely to default on credit - card debt.

Speaking in Montreal on Thursday, central bank governor Stephen Poloz called household debt a major risk to the Canadian economy, suggesting the fear of stoking more borrowing as one reason he has not been even more dovish on interest rate policy.

Meanwhile, overall household debt stood at more than $ 13 trillion at the end of 2017, according to the Federal Reserve.

Carney was quick and decisive in slashing rates during the crisis, more so than other central bankers, but the sustained period of low rates has led to a record amount of household debt and other problems.

Statistics Canada reports that between 1984 an 2009, real average household debt (that is, adjusted for inflation) more than doubled.

Over the past 20 years, Canadian households have more than doubled their ratio of debt to disposable income (a key measure of leverage relative to their ability to pay).

And when you remove debt - free households from the equation — people with either no debt or no credit to speak of — the average debt load was more than double that, at $ 15,609.

Barry admits that it may be hard to track, but the average household in the US is carrying $ 8000 or so in debt and the money would find it's way back to the banks in a more productive way that also helps our taxpaying citizens.

Households had sharply pulled back their discretionary spending, were tending to try to save more and were looking to pay down debts.

, author Jeremy Kronick finds Canadian household spending, apart from housing, has not dropped despite consumers taking on more housing debt and draws lessons for policymakers concerned about a hard landing.

This brings me to a third plot line: that is, how we deal with the higher level of household debt and higher housing prices, especially in a world of more normal interest rates.

Empirical research shows that a buildup of household debt in the economy makes a financial crisis more probable, so we wanted to understand the costs and benefits of leaning against financial imbalances through tighter monetary policy.

A significant proportion of households still carry little or no debt, and in the years ahead might choose to borrow more.

It would not be surprising if the household sector had become more sensitive to news about interest rates, given the increased debt and debt servicing loads that it is now carrying.

Foreign visitors to the Reserve Bank over the years have tended to raise questions about household debt much more frequently than they have raised questions about government debt.

I would like to say a little more about it today and will divide the subject into two aspects: the shorter - term cyclical fluctuations in household credit growth, and the fact that various debt ratios have trended upwards over time.

But closing down unnecessary capacity can pay for itself, even if unemployed workers are temporarily put on the government payroll (causing debt to rise, but usually by less than it had before), but only temporarily as Beijing takes other measures to boost household income through wealth transfers from the state and so to boost consumption, a form of demand which is likely to be more labor intensive than the demand created in the process of over-capacity.

Put differently, the only way to reduce debt is to allocate the cost to some sector of the economy, and broadly speaking these sectors are the household sector, the private sector, the state sector, and the various more specialized subsectors within these three — for example households can consist of rich households versus the rest, the state sector can be divided among the central government and the provincial governments, the private sector can consist of SMEs, large corporations, labor - intensive industries, capital - intensive industries, the export sector, etc..

Given the nation's debt load — as of February, households had a record $ 2.1 trillion of mortgage and non-mortgage debt — Poloz estimates the economy is 50 per cent more sensitive to rate hikes than in the past.

More expensive debt and outright borrowing constraints hamper households» ability to use credit to smooth their consumption.

Rather, the story is that households are being more prudent about debt and are holding more liquid assets.

He turned to Tiff Macklem, the bank's senior deputy governor (who is, incidentally, getting more attention these days as a leading candidate to succeed Carney when he departs next June to take over the Bank of England) to flesh out the household debt picture with details.

This he presents unequivocally as good news, since it suggests an easing of high, mortgage - driven household debt levels that have been among Carney's more acute longstanding concerns about the Canadian economy.

We show that reducing the burden of student debt on households enables them to spend more.»

The speed with which China's GDP growth slows in 2013 will tell us a lot about how determined Beijing is to rebalance the economy in such a way that growth is driven more by higher household income and consumption and less by investment funded by rising government and government - related debt.