Canada is screwed, this is what this article is trying to say, forget the fact that markets are going gangbusters, forget the fact that there are jobs galore, remember the fact that we are the second highest indebted country out of the G7, and didn't learn our lesson when the US had a housing crash.
BOA is predicting a "Mild" recession, while admitting rates were to low too long, over accommodating a pandemic, trying to appease a panicked world. We survived, despite weak guidelines, and Draconian laws that limited freedoms, and injected shit into our veins, that for the most part, didn't cure anybody. (After 3 shots in the arm, I still came down with Covid 19) And now, we wait for a massive wave to wipe out the Economy, and it will take some time. The US had some relief, they suffered the Debt Crisis, and with lots of Netflix movies to reflect upon what the hell happened... but Canada did not. Does that make us better in some way? NOT... US debt is sitting at 78% of GDP, we are at 107%. And most of it is in residential real estate, yep, mortgages. Oh but that's not part of inflation so we don't worry about it, says Tiff Machlem Gov. of the Bank of Canada.
Well holy shit, I worry about it... my mortgage has skyrocketed, and I can't imagine what others are feeling with a 2000% increase in interest payments on variables, and resets. Lets face it, ALL mortgages are variables, just some get to lock in for a short 5 years, but they still feel the effect of fluctuating rates at some point in time. Reports also indicate many resets chose ultra low 1.5% variables to save money, this also spurred inflation, as people had more money to spend, with a drop in monthly payments. You see how this works? But now, its working in reverse, or it should be. This next year will be... "Very interesting" https://www.youtube.com/watch?v=_SVSak1oBCw
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