Description: The Parliamentary Budget Officer (PBO) is concerned. But this time it’s not about government forecasts. Rather, this week the PBO warned that Canadians debt to income level has reached a point not seen in over 25 years. House prices and other pressures are expected to raise those debt to income levels to close to 175 percent by later this year.
Date: January 19, 2016
1) What’s your own personal debt to income level?
2) Debt to income level is a solvency measure for individuals. What are some common measures of solvency for corporations?
3) How do you think these high levels of debt by Canadian families will impact the economy?